Banks reform: 100 days after CBN intervention, Oceanic Bank repositions for greater efficiency

By FRANCIS AROWOLE-BROUNE,  OCEANIC BANK

THE Central Bank of Nigeria CBN appointed management for Oceanic bank has      brought about dramatic change in the affairs of the bank. About 100 days after the CBN intervention and bail out funds injected into the bank visible changes are now evident in the bank. The change necessitated by the recent reforms in the domestic banking sector by the apex bank, (CBN), saw the apex bank intervening in the administration of five banks in the first instance and three others later on. Two other banks were directed to shore up their capital base. In the first round of auditing, five of the banks whose managements were sacked and replaced on August 14, 2009 were bailed out of inadequate liquidity with the injection of N420 billion by the CBN. One of these banks is Oceanic Bank.

Since the intervention, which brought in a new management led by John Aboh as MD\CEO Oceanic Bank, the bank has been on a transformation journey. The management was further strengthened with the appointment of four new Executive Directors: Mrs. Oyinkan Adewale, Mrs. Mofoluke Dosumu, Henry Ajagbawa and Mohammed Balarabe, all tested professionals.

The management in its bid to achieve a sustainable turn around adopted some strategies to; entrench strong corporate governance, evolve a robust risk management framework, aggressively pursue the recovery of non-performing loans, clean up the bank’s balance sheet, taking the business to the next level. It has also strengthened the bank’s risk management system to better deal with liquidity risks and those arising out of off-balance sheet items as well as conforming to the International Financial Reporting  Standards (IFRS) requirements.

Already, the paradigm shift in the bank is contributing immensely to the ongoing new initiatives, superior value propositions, and strategic direction for the actualisation of the bank’s expansion ambition and industry leadership quest. Attesting to the promising results witnessed so far, Aboh said, “With the tireless efforts of our executive directors who are tested professionals of high standing in the financial services sector, our motivated workforce, and a growing service delivery and best practices orientation, I must say that Oceanic Bank remains a front line player committed to effective service delivery, returns on investment and building a stronger Nigeria.”

According to him, “the new management is focused on providing superior customer service in addition to imbibing a thorough and robust corporate governance and credit risk management principles to ensure sustainable growth and profitability. Continuous training of the workforce and cost efficiency will also be on the front-burner to achieve constant and dynamic improvements in the overall performance of the bank. Our goal is to continually meet the ever evolving needs of the public.”

According to him, the bank has adopted a new service charter that is centered on creating and preserving wealth for its customers and stakeholders. “We are reinventing our processes to drive new frontiers of service for all cadres of customers. We are strong because we are propelled by a burning desire to be there always for our customers. With our resilience, we will bend over backwards to exceed the expectations of our clients.”

Project financing: The Bank’s Private Partnership (PPP) initiatives have been instrumental to robust infrastructure development through several projects geared towards growing the nation’s economy and empowering Nigerians to create wealth. Oceanic Bank partnered with Bi-Courtney to develop and modernize MMA2 on Build, Operate, and Transfer (BOT) basis. Oceanic Bank funded the project to the tune of N12 billion. MMA2 is now serving as the hub of business in Africa while bequeathing to Nigerians a world class airport with modern facilities and gadgets comparable to any other airport in the world.

To ensure a new lease of life to people and companies operating in the Victoria Island area and surrounding, Oceanic Bank provided a term loan of N2.8 billion for the Bar Beach reclamation project. Oceanic Bank also provided a bank guarantee to the tune of N5.0 billion for the construction of the Lagos – Epe Expressway, a project that is expected to ease traffic congestion in the area thus allowing for more business activities in the area. Oceanic Bank provided a 5 – year term loan of the sum of N12 billion to Integrated Development & Investment Services Limited under a 25 – year Build, Operate and Transfer (BOT) scheme to build Kano Economic City to replace the Kano Singer Market. The Bank also transformed the Ikeja Cantonment Mammy Market into an ultra-modern market by providing a facility of over N3 billion Woobs Resources Limited.