Nigeria’s leading financial institution, First Bank of Nigeria Limited has promised its stakeholders that it will optimally maximise the opportunities from the disruptions occasioned by the Coronavirus (COVID-19) pandemic on the economy to their advantage.
Dr. Adesola Adeduntan, FirstBank Chief Executive Officer, gave the assurance on Thursday, August 6th, 2020 at the bank’s Virtual Corporate Customers forum webinar.
The forum had the theme: “Navigating the Financial Impact of COVID-19 – Business Leaders’ Role in Finding a ‘New Normal”. Adeduntan said; “FirstBank will continue to leverage the changes to reduce cost of doing business. COVID-19 is giving business leaders an opportunity to rethink on an established wisdom.”
“It is a major crisis that we need to deal with and we must change it from a bad to good crisis. It offers an opportunity to reinvent our business. We have to think without the box. The bank is looking at several opportunities to do things differently to achieve desired result.”
Speaking on the topic; “Impact of the COVID-19 Crisis on the Nigeria Financial Sector,” the FirstBank CEO said; “The pandemic has put significant pressure on revenue and profits of commercial banks. The banking industry is witnessing more stringent interest rates, higher foreign exchange funding cost and concerns on level of foreign reserves, among others.”
“The pandemic has led to uptick in the level of non-performing assets and increase in the level of cyber attacks due to migration to digital channels. We assure customers that the bank will overcome the pandemic, having been in existence for the past 126 years.”
“FirstBank was already in existence when the first pandemic of 1918 occurred. It weathered it and would still shake off COVID-19 pandemic. Our customers are right in there at the centre of our business.”
“The bank has unveiled enhanced palliative measures to help its customers and Nigerians through the times of COVID-19 lockdown. The bank has introduced moratorium to give customers more time to repay their loans.”
Mr Ini Ebong, FirstBank Group Executive, Treasury & Financial Institutions, said; “The collapse of oil price, oil price war, COVID-19 pandemic and global lockdown have affected the foreign exchange market. The foreign exchange market is under immense pressure due to exit of portfolio investors.
“The demand for dollars is heightened due to collapse of oil price and Coronavirus pandemic. Steps taken so far by the Federal Government and the Central Bank of Nigeria (CBN) to support the economy will bring back liquidity. If we create a good conducive environment, portfolio managers will still come back to our market.”
Also, Mr Wole Obayomi, Partner, KPMG, said; “Ttax is part of life, no country has cancelled tax payment because of COVID-19.”
Speaking on the topic, “Tax Advisory: Market Disruptions,” Obayomi advised corporates to ensure payment of tax as and when due, to reduce tax bills in form of penalties.
He said; “Corporates can engage tax authorities for payment extension if they forsee late payment due to the global pandemic. The Federal Government should suspend the new Value Added Tax increase to 7.5 per cent till 2021 due to COVID-19 pandemic.”
Speaking further, Ms Bunmi Bajomo, FirstBank Group Head, Corporate Banking Group (Manufacturing), noted that fundamental change requires fundamental actions by corporates, governments, customers and consumers.
Speaking on the topic: “Impact of the COVID-19 Crisis on the Manufacturing Sector”, Bajomo, said; “There is always an opportunity in any crisis. Companies with strong balance sheet will come out stronger and marginal players would struggle. Corporates should be careful and smarter with operational expenses. Actions corporates take will determine where they would be post-COVID-19.”
