Access To Diamonds

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Published By 

From Our 

Guest Editor 

Stronger Together 

Publisher 

Frank Aigbogun 

Head of Business Development & Client Services 

Ikenna Onuorah 

Head of Marketing 

Akintunde Marinho 

Head of Business & Growth 

Oghenevwoke Ighure 

Editor 

Patrick Atuanya 

Head of Operations 

Fabian Akagha 

Head of Advertising & Sales 

Rerhe Idonije 

Guest Editor 

Lehlé Baldé 

Managing Editor 

Ogechukwu Modebelu 

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Segun Adekoye 

Happy New Year to all the talented The Spark readers. I’m delighted to be guest editor 

for this edition which focuses on mergers, strategic partnerships and financial inclusion. 

With my profession in strategy and partnerships at BusinessDay, I am interested in 

seeing how the Diamond Bank and Access Bank merger would be communicated and received 

by the Nigerian public and other banking stakeholders. You can flip the pages to find out more 

about the strategy behind the most talked about merger of 2019. 

Similarly, as the anchor of the first radio show focused on financial inclusion in Africa - Financial 

Inclusion - Today, I’m happy to see people taking interest in the possibilities of financial and 

economic inclusion for Nigeria. 

On the cover, we have Herbert Wigwe and Uzoma Dozie. In this edition you will get to know 

these two men who represent the true African business excellence and discover how these 

powerhouses have merged two of Nigeria’s most successful banking institutions to create one 

banking powerhouse. This strategic move demonstrates that partnership is not only possible 

but often necessary. 

In my work, I aspire to use the stretchability of the media to shed light on important issues that 

affect the masses in Africa. For we cannot boast about living in Africa’s largest economy when 

so many people are left behind in the socio-economic sphere. 

As young people, we are more powerful than we think. Once we begin to realize the power of 

our voices, monumental things will happen. 

As the 2019 elections draw near, it is vital that all candidates think about implementation 

strategies for economic and financial inclusion. Conversations around wealth creation and 

economic prosperity become mundane, when as of December 2018, 36.8% of the Nigerian 

population is still financially excluded. 

I believe that numerous stakeholders would have to work in concert in order to reach the 80% 

Financial Inclusion goal by the year 2020. There is a long way to go but change is possible and 

ongoing. The theme for me this year is ‘all lives have equal value’, and I hope you take that with 

you everywhere you go in 2019. 

Have a great year ahead! 

God bless. 

#TogetherWeCan #BeTheSpark 

Lehlé Baldé 

Art director 

Kola Oshalusi 

Advert Manager 

Adeola Ajewole 

Advertising 

Linda Ochugbua 

ED, Strategy & Planning 

Bankole Jamgbadi 

ED, Innovation & Marketing 

Damilola Oyewusi 

ED, Growth 

Lanre Solarin 

Chief People Officer 

Lehlé Baldé 

Associate Editor 

John Iyoha 

Ass. Managing Editor 

Ayandola Ayanleke 

Specialist Editor 

Lucy Onuorah 

Digital Communications 

Opeolu Adeyemi 

CSR Administrator 

Precious Aligba 

Design | Illustration 

Sodeinde Oladapo 

In-house Graphics 

Ralph Ifie 

In-house Photographer 

James Otihi 

IT Team 

Andre Udegbe 

Michael Aworoghene 

Address: 

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CONTRIBUTORS 

Oluwatosin 

Olaseinde 

Joseph 

Iruafemi 

Aderinsola 

Fagbure 

Oluwatosin Olaseinde is a chartered accountant with over 9 

years of experience spanning across accounting, audit, financial 

management and taxation. She is the Founder/CEO of Money 

Africa, a platform that enhances financial literacy and wealth 

management coaching. Prior to Money Africa, Oluwatosin was 

a commercial finance manager at British American Tobacco, 

providing commercial & financial advice on capital investment 

and managing marketing investment budget in the 14 different 

markets across West Africa. 

Joseph Iruafemi is enthusiastic about using technology to 

improve the efficiency of people and businesses. He sits 

well at the intersection of business and technology. He is 

comfortable at translating business strategies/ideas into 

software products or finding the business in a software 

product. He is the founder of Now Showing (www. 

nowshowing.com.ng), a digital technology startup focused on 

enhancing the experience of moviegoers. He is also founder 

of Kobotrack, an application that helps people manage their 

money. 

Aderinsola Fagbure is a Corporate lawyer with special interest 

in corporate governance. She is a Senior Associate in the 

Transaction and Business Support Practice of Esher and 

Makarios. She is a graduate of Igbinedion University and 

has a Master’s Degree in Corporate Law from University 

College London. She is a member of the African Society of 

Crowdfunding. Her column “in black and white “which is 

published in Thisday Law discusses innovations in corporate 

governance and finance. Derin is passionate about advising 

small businesses with a view to ensuring that they outlive 

their founders. An active bar member, she currently serves as 

the Chairman of the Young Lawyers’ Forum of the NBA Lagos 

Branch. 

Lanre 

Olusola 

Lai 

Labode 

Tunde 

Kehinde 

Lanre Olusola, also known as The Catalyst, is recognized as a 

premier Life, Mind, Emotions and Behavioral Change Coach 

working with individuals and organizations to transition from 

where they are, to where they desire and are designed to be. 

Connect with The Catalyst on social media @lanreolusola for a 

more transformational post focusing on the critical areas of the 

human life. Contact: info@olcang.com // 08077077000 

Lai Labode is the Founder and Managing Director of CeLD 

innovations Limited. Lai is a Principal partner at FisshBone & 

LESTR Limited, a technology and business consulting firm. Lai 

is a business logic expert with a very extensive knowledge 

of the African emerging markets. Lai studied Corporate 

Restructuring, Mergers and Acquisitions from Harvard 

Business School in Boston, USA , Strategic Innovation from 

the prestigious Imperial College , London and holds a degree 

in Accounting and diploma in Law from University of Abuja, 

Nigeria. He is happily married to the love of his life Ijeoma, 

they are blessed with two wonderful boys, Salt & Einstein and 

an angel named Rhodium. 

Tunde Kehinde is the Co-Founder Lidya (www.lidya.co), the 

future of finance for small businesses in frontier markets. 

Tunde is a seasoned emerging markets entrepreneur who 

Co-Founded, Africa Courier Express, the leading last-mile 

eCommerce delivery company in Nigeria and Jumia Nigeria, 

the leading eCommerce platform in Nigeria. Tunde has prior 

experience as a business development executive with Diageo 

in London and as an Investment Banking professional with 

Wachovia Securities in North Carolina and New York City. Tunde 

holds a degree in Finance with honors from Howard University 

and an MBA Harvard Business School. 

Mayowa 

Owolabi 

Eigbe- 

Akindele 

Edmund 

Olotu 

Mayowa Owolabi is a serial entrepreneur with a passion for 

technology and business development. He is a graduate of 

Electronics and Electrical Engineering from the prestigious 

Obafemi Awolowo University, Ile-Ife and He has over 16 years 

experience in technology business development and the 

use of ICT in deploying enterprise services and solutions. He 

co-founded one of the first e-commerce stores in 2011 – www. 

buynownow.com and sold to shoppi.ng in 2013 and exited 

his first mobile financial services company – dudupay in 2014. 

He is the COO at duduMobile, also one of the co- founders/ 

conveners of Mobile Monday (www.momonigeria.org) in 

Nigeria and is a member of the Nigerian Economic Summit 

Group (NESG – www.nesgroup.org) 

Ehime Eigbe-Akindele is the Founder and Managing Director 

of Sweet Kiwi Frozen Yogurt, Africa’s biggest yogurt company 

which recently expanded into the United States. She has a BA 

(Honors) from London Metropolitan University in Business 

Information Technology and International Relations. She 

began her career with Amnesty International then moved to 

Citigroup in Dallas, Texas in their legal banking group. Ehime 

completed an Entrepreneur Management Program from the 

Enterprise Development Centre of Pan-Atlantic University in 

Lagos. She has a certification in Brand Design as a strategic 

management tool. She is a WIMBIZ (Women in Business and 

management) associate, a Goldman Sachs 10,000 Women 

awardee and a British Council Alumni Award finalist. She is 

a public speaker and has taken part in several motivational 

speaking events to inspire youths and women. She founded 

the Brand Identity Global company in 2015 and held its first 

brand conference in 2015 in collaboration with the Global 

Entrepreneurship Network. Ehime is passionate about 

branding and brand design. 

Edmund Olotu has founded and financed several Technology 

companies in Nigeria and the USA. US Companies include 

Novira Therapeutics Inc. and Generate4Schools LLC. His 

payment application development company, TechAdvance 

Ltd. founded in 2009, develops collections, aggregation and 

transaction data analytics platforms for multiple industry 

verticals. Amongst his other ventures, is SuperGeeks Ltd.- a 

personal consumer electronics after-sales service and gadget 

insurance company featured on CNN as one of Nigeria’s most 

innovative start-ups; Reydious Ltd, an agric technology R&D 

company and West Africa Mining Corporation operating 

several gold and diamond mining acreage in Sierra Leone 

and Liberia. Edmund has a Bachelor’s degree in Mechanical 

engineering with Business from Manchester University, a 

Master’s degree in Science and Technology entrepreneurship 

with distinction from Nottingham University Business School 

and a Master’s degree in Management Finance and Control 

from Harvard University. 

Deji 

Kurunmi 

Endurance 

Okafor 

Ololade 

Akinmurele 

Deji Kurunmi has spent the last decade advising business 

leaders and helping them solve complex problems. He now 

leads the Financial Advisory team of Enzo Krypton and 

Company where they help high growth businesses raise the 

capital to fund their long term strategy. Deji is a detailed and 

diligent negotiator and very creative with deal structuring. 

Endurance Okafor is a financial analyst at BusinessDay and 

analyst on financial inclusion today- a radio programme that 

creates awareness on inclusion for Nigerians. 

Ololade Akinmurele is a senior finance analyst at 

BusinessDay, West Africa’s most authoritative financial 

newspaper. Ololade is a Bloomberg award-winning financial 

journalist and a fellow of the Bloomberg Media Initiative 

Africa. He is passionate about financial inclusion and has 

produced over 200 articles on the subject matter. He joined 

BusinessDay in January 2016, after obtaining a Bachelor of 

Science degree in Political science from the University of 

Lagos. 

Mayowa Kuyoro 

“Mayowa Kuyoro is an Associate Partner 

at McKinsey & Company and 

based in the firm’s Nigeria Office.” 

Copyright © 2019 The Spark. All rights reserved. No part of this publication may be reproduced, stored in a 

retrieval system or be transmitted in any form or by any means, electronic or mechanical, without prior permission 

of The Spark. 

We do not endorse any products or services mentioned in any of the articles and are not responsible for the 

outcome of using such products or services.



CONTENT 

04 

BOTTOM LINE 

• Achieving your Financial Goals 

06 

WIRED IN 

6 

• Your Finance Butler 

4 

08 

PRO BONO 

• The Rules of a Merger 

• 10 Financial Apps for Small Businesses 

11 

VITAL SIGNS 

• Bouncing Back 

11 

13 

FEATURES 

• On Loyalty and Rewards 

16 

• Banking the Unbanked 

• Access to Finance 

SPARK EFFECT 

8 

13 

• Access to Diamonds: Herbert Wigwe 

• The Connect 

• Access to Diamonds: Uzoma Dozie 

24 

SPECIAL FEATURES 

• Oluseyi Kumapayi: The Finance Guru 

• Amaechi Okobi on The New Brand 

Identity 

• Robert Giles on Retail, Tech and 

Innovation 

24 

29 

FEATURES 

• Mergers & Acquisitions in Nigeria 

• The Rise of Payment Solutions 

• MSME Lending 

• 10 Organisations that drive financial 

Inclusion 

• Branding for Mergers and Acquisitions 

• Scramble for the Financially-Excluded 

• The Mobile Money Landscape 

16 

37 

WHAT NEXT 

26 

29 

@thesparkng 

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BOTTOM LINE 

Achieving your Financial Goals 

Make better financial decisions this 2019 to achieve your financial goals. 

By Oluwatosin Olaseinde 

A 

new year is an opportunity to set new financial goals and 

achieve them. Initially, it might seem daunting, or there might 

even be thoughts along the line of “but I set some goals last 

year and didn’t achieve it.” 

You don’t have to take that journey alone without guidance; we have 

put together a few tips to help you achieve your financial goals in the 

New Year. 

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@thesparkng



Write it down 

Writing down goals serves two purposes: 

Firstly, to make them more real to you. It’s not 

enough to think up your goals in your head, 

write them out, boldly. Secondly, writing 

your goals help to remind you of them. While 

writing out your goals, make them simple, 

straightforward and achievable. For instance, 

don’t write “Save/Invest money” write “Save 

N20,000 monthly in a mutual funds account.” 

It’s okay to start small, don’t attempt to save 

90% of your income on your first trial. 

Build an emergency fund 

An emergency fund is that amount of money 

you have saved for unexpected expenses that 

must be urgently attended to. I added “... that 

must be urgently attended to” because an 

unexpected expense may not be urgent and 

in that case, you can provide for it in your 

next budget. We usually recommend that 

you have at least six months worth of your 

monthly expenses in your emergency fund. 

That is, if you spend about N50,000 monthly, 

you should build an emergency fund of at 

least N300,000. 

Read books on finance 

If you’re serious about reaching your 

financial goals, then you must stay motivated 

and enlightened. There are a good number 

of books you can read to keep you informed 

about money, savings, investments, stocks, 

etc. Here’s a list of my top three, thank me 

later. 

Intelligent Investor by Benjamin Graham, 

Rich Dad Poor Dad by Robert Kiyosaki, You 

are a badass at making money by Jen Sincero 

Invest in a mutual fund 

A mutual fund is a pool of money from 

different individuals invested and managed 

by a Fund manager for profit. What 

distinguishes a mutual fund is what it invests 

in. For instance, we have the Money market 

mutual fund, equity mutual fund, real estate 

mutual fund, amongst others. There are 

many mutual fund managers in Nigeria today 

that offer investment opportunities for as low 

as N5000. Make sure to acquire information 

about interest rates and redemption policies 

before you invest. 

Build a stock portfolio 

Diversification is a key feature in investing 

as it helps to reduce risks. A stock portfolio 

means that you have invested in more than 

one kind of stock. This is to make sure that 

your risks are mitigated; if one stock is not 

performing as expected, others might. You 

should do your research before you decide 

which stocks are best for you to invest. 

Find a profitable side hustle 

The term “side hustle” is parlance for an 

extra stream of earned income. That skill or 

talent you have can be developed to earn 

you more money. Don’t dull in 2019, make a 

profit from your passion. Even if it’s not your 

passion, if it’s legal and profitable, you can 

make plans to monetise it. 

Draw a budget 

Budgeting can never be overemphasised. 

You can’t control what you don’t track. 

Make sure to keep track of your expenses 

every day and draw up budgets before you 

start spending. This will help you have more 

control over how much money goes out of 

your wallet or bank account. Several mobile 

apps can help you with this. It’s not enough 

to draw up the budget, be disciplined about 

keeping to it. You might have to say no to 

some hangouts or “Aso-Ebis” if you were 

not pre-informed. You don’t owe anyone 

an explanation besides “I cannot afford that 

now.” 

Learn a new skill 

About that side hustle, certain skills are 

currently on demand that can bring in some 

more cash for you. More interestingly, you 

can acquire most of them for free by taking 

courses online. Even if you have to pay, 

consider it an investment. By all means, keep 

learning and keep earning. 

Get an insurance cover 

No one likes to spend money on 

insurance, but it is one of the smartest 

things that you can do on your road to 

financial independence. If the unexpected 

circumstance happens, you do not have to 

spend the money out of your pocket. It is a 

hedge against an unforeseeable event, and it 

is a wise investment decision to get one 

Join an Online Community 

One of the best ways to push you further 

towards your goals is by learning and 

accountability, a community does this for 

you. Of course, Money Africa is one of the 

best personal finance platforms you can be 

a part of. Let us help you earn more, invest 

more and grow sustainable wealth. 

Follow us on all social media platforms @ 

moneyafrica. 

“A new year is a new 

opportunity to set new 

financial goals and 

achieve them.” 

@thesparkng 

5



WIRED IN 

Your Finance Butler 

What if you had someone else to worry about 

budgeting, savings, and investment while leaving 

you to focus on making more money? 

By Joseph Iruafemi 

Today had turned out to be one of 

those days for Segun. From the driver 

who rammed into his bumper earlier 

in the morning, to the impromptu 

lunch to appease a client and then his cousin 

who wanted N25,000 for his school project, 

he had bled out in unexpected expenses. 

As he turned the key to unlock the door to 

his flat, he smiled, knowing that Tracly would 

show him reds and still be kind enough to let 

him know how he could shape up in the next 

few days to make up for the dent the day had 

made in his pocket. 

You see, Tracly is Segun’s financial butler, a 

trusted ally that manages all of his money. 

The two had met at a time Segun could 

not seem to get out of debt. He was always 

financially tight despite earning N200,000 

monthly from his job for 2 years. Frustrated 

about the bleakness of his financial future, he 

complained to Soji his colleague at work. 

“Soji, I can’t seem to make head or tail of 

my money. It is like an evil spirit is taking my 

money.” 

Soji had asked if he used an excel for tracking. 

He did. It was simple enough to open an excel 

sheet but remembering to update it regularly 

was a pain for his tight schedule. 

“Well, I should introduce you to Tracly then”, 

Soji replied. 

And so it started, 1453 days ago, that Tracly 

took over the management of Segun’s 

finances. All he needed to do was to give 

Tracly access to his account statement, and 

the butler would handle the rest. 

In the beginning, Tracly had put Segun in the 

“Getting out of debt category” and helped 

him create a tight budget. The budget focused 

on covering his basics - bills, transportation, 

feeding, grooming and the rest went into 

paying his debts. Immediately his salary got 

paid into his account; the Butler fanned the 

leftover into the accounts of his creditors. 

Tracly then told him who he had paid and 

6 

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“It all seemed so novel 

to him at the time but 

working with the butler 

made him realize he 

had been spending way 

too much on coffee, 

entertaining himself and 

also not cashing out his 

loyalty points.” 

what was left to be paid. Those months had 

been gruesome on him, but he knew it was 

a price he had to pay for financial freedom. 

It all seemed so novel to him at the time but 

working with the butler made him realize he 

had been spending way too much on coffee, 

entertaining himself and also not cashing out 

his loyalty points. The butler had helped him 

cut the overspend. He had recommended 

some hangout venue around his workplace 

and home where loyalty points could be 

earned on purchases. This was how Segun 

found his regular hangout spot at Sailors 

because of their cashback program. The 

butler put the extras he cranked out of the 

spending cut and loyalty points into his small 

tickets savings for things like birthday gifts. 

Since paying off his debts, he had moved 

from “Getting out of debt” category to the 

“Savings category” and then to the “investing 

category.” 

The butler had been a different kind of animal 

during the different categories. Tracly moved 

from auto-saving to auto-saving and auto 

investing his money for him. 

During his saving phase, Tracly had been 

aggressive, pushing just about anything 

that was not going into his essentials into 

his emergency funds record. The butler had 

continued this regime until he had over six 

months of his salary in that record. 

Now, the butler split the money into two, 

invests a part and saves the other part. 

Although he wasn’t having as much fun as he 

would have loved to, the idea of increasing 

his emergency fund while investing for the 

future was exciting. 

Tracly’s dexterity with numbers never ceased 

to amaze Segun. The butler could reduce or 

stop allocating money to a specific financial 

goal depending on the severity of a new 

goal that he shared. When Segun told the 

butler he planned to travel for a holiday in 

6 months, Tracly recommended he made 

this ten months so he could still be in good 

standing for saving for his house. And the 

butler went ahead to adjust every other part 

of his finances accordingly. 

“Tracly, what is today’s status?” Segun said to 

his Amazon Echo as he walked into the room. 

“Hello Segun, today, you overspent by 300%. 

Your DSTV subscription will be due in the 

next five days, but if you renew today, you 

will get a 15% discount. Would you like me to 

renew your subscription now?” 

“Yes please,” Segun replied. 

“Can I afford to hang out with the boys this 

Friday?” Segun went on to ask. 

“No, you cannot” Tracly responded. “You 

cannot afford to pay for your hangout for 

the next 2 Fridays if you want to keep things 

going smoothly.” 

“What a guy,” said Segun to himself as he 

walked away from the device to his bedroom. 

He will be fine. Tracly got him. 

@thesparkng 

7



PRO BONO 

The Rules of a Merger 

Mergers are not only for the big boys, but the small boys can also 

employ mergers as a strategy for growth. 

By Aderinsola Fagbure 

The term merger is more often than 

not associated with multinationals 

and global conglomerates, with big 

shots like Time Warner, Total Fina, 

Elf Acquitaine, Cadbury and Kraft coming to 

mind. A better understanding of the concept 

of mergers can be sought from a simplified 

definition of the term. 

There are several technical definitions of 

mergers, but I have chosen to describe a 

merger as an economic marriage with the 

aims of increasing revenue, opening up new 

markets/ frontiers, developing new products 

and services and expanding client base for 

both parties (in this instance entities). 

The reason for proposing consolidation 

transactions are numerous, thus making 

them attractive to forward-looking business 

managers, professional advisers, and 

investors. Mergers and Acquisitions may or 

may not be industry specific. 

Locally, the announcement of the N25 billion 

minimum capitalization requirement by the 

Central Bank of Nigeria in 2005, brought 

about heightened talks of possible mergers 

and acquisitions (henceforth, M & As) among 

bank directors and managers who were 

passionate about their companies’ survival. 

The need for compliance with the directive 

saw a new wave of consolidation activities in 

the Nigerian world of finance and law. 

A similar flurry of activities occurred about 

the same time in the Insurance Industry, 

due to regulatory requirements. Hence M & 

As can be a precursor to stronger industries 

as we have witnessed in our banking and 

insurance industries. So, are M & As only for 

big entities, or just for any business entity? 

M & As are recommended for almost any 

business entity. 

In reality, any two incorporated companies can 

voluntarily embark on a merger, irrespective 

of employee size or capital structure. Startups 

and small scaled businesses are therefore 

not excluded from the merger equation. 

Meanwhile, it is most unfortunate that a large 

number of entrepreneurs see mergers as a 

deceptive form of liquidation. 

The benefits of M & As are rewarding 

regardless of whether or not the entities 

involved belong to the same industry or 

cut across different industries. One of such 

benefits is synergy, which is one of the most 

talked about reasons for a merger. Often 

times, a business will attempt to merge with 

another business which has complementary 

strengths and weaknesses. Of course, 

amalgamating businesses leads to increased 

revenue and reduced business running cost, 

where the merger procedure is properly 

managed. 

Another benefit related to synergy is the 

increased efficiency resulting in improved 

share value, which has further been given as 

one of the incentives of mergers. Research 

shows that on average the share value 

of the combining entities improves upon 

consolidation. The Nigerian example in which 

the banking consolidation exercise gave birth 

to a number of institutions strong enough 

to compete internationally shows how M & 

As can significantly improve on the profile, 

reputation, and competitive strength of the 

resultant entities. 

Another benefit of M & As is that companies 

can enlarge their product range and supply 

chain by considering business combination 

options. For instance, the deal negotiated by 

Cadbury Plc and Kraft Foods Inc. opened up 

new opportunities for the resulting entity by 

creating new markets for Kraft Foods Inc. in 

Africa and Asia. Such access to these markets 

would not have been possible without the 

two companies coming together to become 

a stronger single entity. 

Hence, the need to increase production 

scales and reduce competition was also 

given as an argument in favor of M & As. 

In other words, mergers provide acquiring 

companies an opportunity to boost their 

market share without necessarily improving 

their marketing strategy. Relatedly, a large or 

medium-sized law firm may acquire a small 

practice in order to expand its client-base 

and technical capacity. 

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@thesparkng



Another benefit of M & As is the opportunity 

to take advantage of international 

partnership which allows for a global 

presence Global market pressures have led 

to a rise in cross-border merger transactions. 

For instance, Nigerian brands are sought 

after internationally, with a number of 

them partnering with global retail brands 

and stores. Such international partnerships 

could be strengthened through possible 

mergers, particularly those within the African 

continents of which Ghana and South Africa 

are examples of emerging frontiers. 

As we are all aware, technological innovations 

are recorded daily of which the industry giant, 

Apple continuously reminds consumers 

about the limitless world of computers, by 

unveiling new products regularly. Hence, the 

demand for whizkid Chief Executive Officers 

has skyrocketed and been recognized as a 

major consideration for several cross-border 

corporate mergers. 

A vibrant market for corporate control also 

improves the statistics of mergers and 

acquisitions. The possibility of successful 

bidders replacing poorly performing 

executive directors in order to enhance the 

profitability of corporations augurs well for 

any economy, thus encouraging dynamic 

business arrangements. 

One cannot mention M & As deals without 

discussing the complications that accompany 

this procedure. As with marriages between 

human beings, divorces of corporate entities 

are not unheard of. To sustain M & A deals, 

great responsibility is therefore placed on 

deal advisers particularly lawyers, ensuring 

not only the success of birthing a new entity 

but also of sustainability. 

Business experts believe that no two M & 

A deals are alike, which implies that high 

degree of legal expertise and innovation is 

required on the part of (Nigerian) solicitors 

dealing with business intricacies of M & As. 

More importantly, in a transactional setting, 

lawyers should carefully analyze all available 

and relevant data including the statutes and 

professionally advise clients on how best to 

structure their business affairs in a bid to 

comply with relevant provisions. 

The deal flow of all acquisitions is standard, 

notwithstanding the uniqueness of 

each bargain. The process starts with an 

introduction, followed by the negotiation, 

then the due diligence (D.D) process which 

if successful leads to the obtainment of the 

board, shareholder as well as regulatory 

approvals. A well carried out due-diligence 

exercise is a prerequisite for a successful 

merger, hence the need for advisers to ask 

the right questions from the onset. The D.D 

process can be likened to an inspection 

carried out by a mechanic prior to the 

purchase of a car, an exercise aimed at 

determining whether the vehicle is worth its 

asking price. In essence, due diligence before 

a merger is like a courtship before marriage. 

A merger, if well-coordinated, is expected 

to expand business opportunities. However, 

before embarking on this exercise, taking 

note of the number of employees the 

merging partner has is important, what 

risks has the business been exposed to, the 

legal and financial structure as well as the 

debt exposure of the relevant business. No 

entrepreneur wants to pay for a shell or end 

up like the lady who thought her husband 

was a billionaire but soon found out after 

marriage that he was living a borrowed life. 

The merger transaction is rounded up by 

signing and closing. As soon as negotiations 

are launched, legal and financial advisers 

are engaged in structuring the deal and 

determining a fair price for the sale. The 

target has a vested interest in ensuring that 

it receives the best selling price while the 

bidder’s management is keen on a transaction 

that is indeed value for money. 

In arriving at the true worth of a company, 

therefore, advisers should not only protect 

the interest of their clients but also ensure 

that the valuation results give an accurate 

and fair view of the firm’s worth and that 

the due diligence is conducted ethically. 

Legal advisers particularly have a role to play 

in drafting water-tight agreements which 

will stand the test of time in balancing the 

interests of the buyer and that of the seller. 

It must be mentioned that having examined 

the incentives for business combinations 

certain factors inhibit the growth of such 

transactions in these parts of the world. 

Culturally, we hold on to investments 

irrespective of how logical it is to do so and in 

consequence would rather be the sole owner 

of a tottering business than be a part owner 

of a bigger cake. 

The notion of “it’s my business”, I started 

it and must not allow anyone to share 

in my business successes”, must change. 

Another reason for the slow growth of M & 

As activities in Nigeria is that the relevant 

regulatory system is underdeveloped. 

The financial industry is also lagging in its 

response to credit requests, a situation which 

impedes the process of negotiations. 

A merger is not just the coming together of 

two businesses. It is the amalgamation of 

corporate cultures. The culture and structure 

of Business A should be similar to Business 

B and should be synergized sufficiently to 

ensure a smooth running of the resultant 

entity. This is why it is important for startups 

founders to be clear about the mission and 

vision of their companies because, in reality, 

you cannot give what you do not have. 

Equally, the management and employees of 

the merging entities must be carried along 

in the process. It can be scary to be asked 

to be part of new business as an employee. 

Therefore, it is the responsibility of the parties 

negotiating the deal to ensure that staff 

welfare is paramount. Realistically, however, 

only the best hands and the brightest brains 

can be retained in a change of structure 

transaction. 

The customers of both entities must not 

be overlooked, also. Hence the customer 

enlightening sessions being carried out by 

the relevant entities in the proposed Diamond 

Bank Plc and Access Bank Plc merger is 

laudable because it has to a large extent 

helped in assuaging the fears of concerned 

customers. 

The result of a merger is a bigger and 

stronger brand. The shortcomings of megasized 

brands have been identified mainly 

as the inefficiency of size and variations in 

corporate culture among merging entities. 

These challenges do not overshadow the 

economies of scale associated with globally 

competitive businesses. 

It is, therefore, evident that under the 

philosophy of the survival of the fittest, 

Mergers and Acquisitions will continue to 

thrive. Africa will do well to join in the trend 

actively. Nigeria can take the lead, particularly 

with the recognition given to some Nigerian 

companies recently by the London Stock 

Exchange. 

These nominations evidence the fact that the 

small brand of today has the potentials to 

become an international brand if corporate 

governance and accountability are given 

priority. A good way to end this piece is by 

celebrating all the companies that were listed 

as part of the Companies to Inspire Africa, 

as compiled by the London Stock Exchange. 

Indeed, Mergers and Acquisitions are for big 

and small companies. 

“A merger is not 

just the coming 

together of two 

businesses. It is the 

amalgamation of 

corporate cultures.” 

@thesparkng 

9



10 Financial 

Apps for Small 

Businesses 

Need financial apps that can help 

with productivity? Look no more, 

find below apps to help you 

organize your business and make 

your life better. 

By Ayandola Ayanleke 

The world is experiencing technological advancements and innovations in practically every aspect of 

life. Life is increasingly going digital, and work has been made easier to accomplish using technology. 

One of the strategies of success in the labour market, experts would say, is working smarter and not 

necessarily harder. The movers of the economy have discovered this and the earlier you key into this 

too, the better. 

Working smarter would entail taking advantage of what technology has made available to make your 

work easier and ensure higher productivity. The apps mentioned below are some of the financial 

apps that can make you get ahead as a small business owner. 

As an entrepreneur, it cannot be overemphasized 

that you need financial 

discipline and that includes imbibing 

a savings culture. You don’t have to 

worry about this because Digit is at 

your service to help you save money 

that you might have otherwise spent 

carelessly. It does this by analyzing your 

spending habit and keeps a percentage 

of your capital into a no-interest 

savings account. 

This is an app that can help you track 

high-quality invoices efficiently. It is 

popular for being very organized. The 

free version allows you up to 5 clients 

per month. But for more features, like 

syncing to PayPal, sending an unlimited 

amount of invoices and recurring 

payment, you will need to pay. 

This app gives you comprehensive 

information about your finances by 

pulling data from the bank account(s) 

you sync it with. So it gives you a 

snapshot of all transactions; what you 

spend, when you paid, product or 

service paid. It also provides you with 

your business’ financial analyses and 

forecasts based on data pulled. 

Gusto helps you organize your 

company’s payroll, taxes and benefit, 

new hire reporting, employee records, 

and track sick leave and vacation. It 

enables you to achieve specific HR 

duties if you cannot afford to hire help 

and so, you can concentrate on being 

useful in other parts of your businesses. 

Launched in 2012, Wave is an 

accounting app for small business 

owners with nine or fewer employees. 

With over 2 million users, wave serves 

as a go-to app to manage accounts, 

payrolls and invoicing. The app goes for 

free, and it can be downloaded on both 

Android and iOS phones as well as on 

a desktop. 

If you need help creating a business 

plan and track your plans to monitor 

your progress, then this is the app for 

you. The app helps you build business 

plan as well as infographics to track 

your revenue and expenditure so you 

can monitor your progress and have 

enough data to make changes, where 

necessary 

Free to download, Freshbooks help 

small businesses monitor their 

invoices, and other cash flow on as 

well as offline. Available for Android 

phones and iPhones, the app is easy to 

navigate. You can create a customized 

invoice that fits the look of your 

business, send to clients and receive 

payment at a go. 

QuickBooks is a mobile accountant. It 

does all the job of an accountant for 

a small business owner seamlessly; 

it manages inventory, sales, payroll, 

bills, taxes, track invoices, revenue, 

and even gives profit analysis. The app 

also connects to all accounts, including 

banks, PayPal and credit card accounts 

and uploads data from them all. 

You want to be free of the tedious and 

boring work of dealing with employee 

expenses, Expensify is here for you. The 

app helps you by handling business 

trip expenses. You can do this by either 

linking the app to your preferred card 

payments credit and debit card or you 

can take a picture of your receipt to 

scan on the system. The app will work 

with the relevant information to create 

an expense report. 

Zoho Books does it all, sales, marketing, 

recruiting and even writing reports. 

The best part is that Zoho works with 

Google Apps, which makes it easy 

to use and it also has other Officelike 

suites that can be synced with 

Microsoft Office. 

This list is by no means exhaustive, 

but the apps listed here will go a long 

way in helping you track and monitor 

your finances in order to improve 

productivity. 

10 

@thesparkng



VITAL SIGNS 

Bouncing Back 

Financial setback, in the face of the economic instability in Nigeria, while not shocking has led to 

the prevalence of mental breakdown in individuals. But all hope is not lost, there is a solution. 

By Lanre Olusola, The Catalyst 

In today’s economic climate, personal 

bankruptcy has reached an alarming 

rate. I will be using data from the US 

and the UK to buttress my points as 

we can’t find proper data in Nigeria. 

Studies show that more than 1.5 million 

people file for bankruptcy every year In 

the US alone. Every day in the UK, about 

300 people are declared bankrupt or 

insolvent, i.e. one person every 5 mins 

5 secs. 

Another 25,000 lose their homes 

through repossession each year. Millions 

are living on the edge of financial 

meltdown as they struggle to make 

ends meet, meaning that the numbers 

may continue to rise. A few years ago, 

the Citizens Advice Bureau reported 

that they deal with 6500 new debt cases 

every working day. That’s a staggering 

1.7 million people facing problems 

which they simply can’t cope with. 

Most significantly, nearly 97% of 

bankruptcy filings are made by 

individuals, not by businesses. In 

Nigeria, the situation is worse I am sure. 

With Nigeria being declared the poverty 

capital of the world, it is no secret that 

people are becoming poorer and more 

businesses are shutting down as they 

struggle to stay afloat. The reality is 

that more than ever, more people face 

serious financial difficulty today. 

In our society today, some of the 

most common reasons why people 

experience financial setbacks include 

medical expenses, job loss or business 

failure, credit and debt, unbudgeted 

expenses and overspending, divorce, 

separation and more. 

Being in debt, broke, and unemployed 

can lead to major financial stress that 

ultimately culminates into depression 

and other mental health challenges. 

However, the converse is also true: 

depression can precipitate a financial 

meltdown. 

If you’re suffering from a serious 

financial setback, the first thing you 

need to realize is that you are not alone 

and that there is no setback you cannot 

recover from. 

“A bucket can only contain the quantity 

of water it can, irrespective of the 

amount of water in the universe; Likewise 

your hands can only hold the amount of 

money your mind can hold, irrespective 

of the amount of money available in the 

universe” - The Catalyst, Lanre Olusola 

Bouncing back from financial challenges 

is the first to mind over matter. You need 

to understand that failure is a natural 

phenomenon for successful people. 

I always say, failure is the gateway to 

success. Learn from every failure so that 

you can become emotionally intelligent. 

Failure learned from is not failure; but 

advantage and feedback on how to do 

things better. 

Many things are responsible for why 

people find themselves in trouble 

financially and if you know and avoid 

these mistakes going forward; things will 

begin to look better for you financially. 

I’d share a few of these mistakes and 

some recommendations. 

Many fail to set and live on a budget. 

This should be common sense. But 

you find that not many people create 

realistic budgets around their income 

and needs. To maintain a balanced 

and healthy financial life, you must 

learn to practice budgeting and living 

within your budget. Start budgeting by 

tracking your everyday expenses, to the 

last dime. 

Based on your historical spending 

pattern of previous months, differentiate 

your critical immediate daily needs from 

your monthly needs and finally from 

your wants. Color-code these three 

in Red, Yellow and Black respectively. 

Then to budget for subsequent months 

eliminate the black wants (expenses) 

and set the limits of what you can spend, 

and write a list of what you need to 

spend on, month in month out. It is a 

very simple practice that can save your 

life and stop you from further digging a 

debt hole for yourself. 

Failing to put an emergency fund in 

place 

An emergency fund is money that will 

help you live your life without lack in 

times of difficulty if, for example, you 

lose your job or your business is going 

through a dark patch. The rule of thumb 

is to have up to 6-12 months of expenses 

saved up. Having an emergency fund 

is one of the most important financial 

habits that can tide you over when 

you face financial difficulties which can 

happen to anyone at any time. 

Living and Spending Beyond Your 

Means. 

You have to learn to abase and abound 

- cut your coat according to your cloth 

and not according to someone else’s 

specifications, expectations, cloth or size. 

Now, this is particularly a very bad habit 

for black people because we are always 

trying to keep up with the Joneses and 

@thesparkng 

11



outdo each other. We don’t live our own 

lives, walk our own path and run our 

own race. We daily try to live the life 

that we see other people living failing to 

recognize that we are all different and 

going to different destinations. 

It’s ok to own a comfortable 4 bedroom 

home that you worked very hard for and 

bought with your own sweat money (not 

a big 10 bedroom mansion that your 

friend inherited from his father who 

inherited it from his father). 

Not having proper insurance on 

possessions, health, and life. 

Make sure you update the value of 

your possessions such as your car, 

house, watches etc. and insure them 

for their replacement, not purchased 

value, because the whole essence of 

an insurance is to be able to replace 

what you lose on the date you need to 

replace it with the money the insurance 

company gives you after their financial 

adjustment exercise. 

Especially in this season when the 

exchange rate of the dollar to the Naira 

has tripled in the last couple of years so 

what you bought for $50,000 a year ago 

at an exchange rate of 160 Naira to 1 

dollar will give you slightly less than half 

of the value today at an exchange rate of 

363 Naira to 1 dollar. Hence, you won’t 

be able to replace the same possession 

even if the insurance company pays you. 

Protect yourself from any unforeseen 

circumstances such as fire, theft, accident 

etc. You never know what might happen 

in the future. 

Tip: Do your due diligence on the 

various top insurance companies. Know 

their history and products and try to 

use a single insurer so that your cover is 

total and discounted 

Procrastinating and waiting for the 

perfect opportunity or time to save 

and invest. 

There will never be the perfect time to 

save or invest. If you don’t develop the 

attitude and habit with the little you 

have today, you will never do it with the 

plenty you get tomorrow. 

Many people are cheated from doing the 

right thing because of procrastination, 

wrong advice or fear. When you get any 

inflow, ensure that you first pay yourself 

a percentage that goes into securing 

your financial future. There is no amount 

of money too small or too big to put 

away but the key is consistency. 

Getting into the habit of buying every 

latest or new thing. 

There is nothing new that you buy that 

once you pay for it and leave the shop 

with it, it doesn’t begin to depreciate; 

especially cars, electronics, phones etc. 

These things are really not assets but 

liabilities or consumables, as their value 

depreciates after purchase. Why not 

invest your money in instruments and 

things that the value increases, even 

after purchase? 

Living only for today 

Yes, you may have made some bad 

financial decisions that led you to 

experience setbacks but your tomorrow 

is based on the decisions and actions 

you take today. There are 3 dimensions 

of financial focus: Short, Medium and 

Long Term. 

One of the greatest financial mistakes 

anyone can make is to permanently 

be myopic i.e. focus exclusively, living 

for and financial planning for the short 

term. This attitude causes wasteful and 

foolish spending habits. People like 

these, unfortunately, attract their kind 

and therefore surround themselves with 

similar foolish people. 

As we know, “He who walks with the wise 

shall be wise but the companion of fools 

shall be destroyed” (Proverbs 13:20). 

Investing in a Pyramid scheme 

A major cause of financial setback 

in Nigeria is get-rich-quick schemes. 

Recently, many people who invested in 

financial pyramid schemes like MMM, 

Swiss Golden, etc have had their fingers 

severely burnt. Months or years after, 

the schemes go burst. So many others 

have come and gone the same way. 

Don’t get carried away when a particular 

investment is going good, human nature 

tends to think this good streak will go 

on forever, so we sink even more money 

into it. 

Seek help from a professional 

financial advisor 

Not having a personal professional 

financial advisor and getting financial 

advice from just anyone If you go to a 

doctor when you need medical advice, 

so also you need to get financial 

advice from a proven and time tested 

professional financial advisor. Without 

a proper advisor, you could be heading 

for financial oblivion. A professional 

financial advisor will first assess your 

financial wellness status by diagnosing 

any financial illness before he prescribes 

any intervention 

Don’t take financial advice from your 

pastor, imam, traditional ruler etc. if they 

don’t have a financial background and 

experience. They’re there to give you 

spiritual guidance. Financial and spiritual 

guidance are on two different divides; 

“One is Godly, the other Worldly” and as 

such, the principles will vary as far as the 

heavens are from the earth. 

Not managing your emotions around 

money 

“If you cannot manage your emotions, 

you cannot manage your money” 

- Warren Buffett. 

Did you know that: 

Your psychology, perception, values, 

and convictions about money based on 

your background and past experiences, 

make money a critical source of stress, 

tension and emotional trauma for you. 

Research now states that 85% of success 

is dependent on how emotionally 

intelligent you are. Master your emotions 

and you can master your success. Search 

yourself before you wreck your life 

because of money. 

So my challenge for you is: 

What’s your relationship with money? 

The genuine answer to this question 

gives you an indication of where you are 

with your emotions around money. 

To help you for free within the next 10 

days, download our digital coaching 

app, “CoachMe Online” from your 

App store. We have scores of certified 

coaches in different specialized fields 

who are waiting to coach you in your 

desired area for free. These coaches will 

work with you in real time to transition 

from where you are currently now, to 

where you would love to be. 

This is the abridged version. Find the 

complete article on our website www. 

thesparkng.com/category/catch-up 

“With Nigeria being declared 

the poverty capital of the world, 

the reality is that more than 

ever, more people face serious 

financial difficulty today.” 

12 

@thesparkng



FEATURES 

On Loyalty and Rewards 

“The most potent idea is that which effortlessly invokes hope and 

advantage in the average consumer” 

-Lai Labode BLE.CRMA, Harvard 

By Lai Labode 

There are three key problems with the 

African Customer Loyalty Space; 

● 

● 

● 

Profound Copy-Cat Syndrome 

Poor or Patently Subjective Data 

Interpretation 

Poor Conversion of Interpreted 

Data to Innovative Customer 

Loyalty & Reward Products 

In the boldest bid to re-invent the African 

Customer Loyalty and Reward Industry, 

CeLD Innovations Limited commissioned 

the most important consumer management 

research in decades; the company christened 

the research ‘The Patronage Optimization 

Research’, the study focused on how best 

to find the MOST POTENT EMOTIONAL 

DISPOSITION of the average African 

Consumer and how to sustainably and 

effectively develop CONSUMER EMOTIONAL 

EQUITY. 

One of the fascinating things about the 

research was its methodology; the research 

coverage of all social classes, the depth of its 

iterations and the very deliberate non-use 

or acceptance of ‘yes’ and ‘no’ answers to 

its multi-directional questions. All responses 

were conversational to ensure that the sets 

of answers extracted the core emotional 

dispositions of the respondents. The collected 

answers were processed for consistencies, use 

of language, insinuations and inconsistencies; 

which were further tested against real life and 

practical outcomes before conclusions and 

hypothesis were established. 

The Result found that “WHAT THE AVERAGE 

AFRICAN CONSUMER REALLY WANTS, IS AN 

OPPORTUNITY FOR LIFE-CHANGING CASH 

REWARD AT THE POINT OF PATRONAGE.” 

While the ‘REALLY” in summary symbolized 

the depth of the emotion of the consumer, 

the LIFE-CHANGING’ element firmly 

described what kind of ‘CASH REWARD’ 

the consumer most desired, “THE POINT 

OF PATRONAGE” in the summary result 

emphasized the point where and when the 

customer wants his or her ‘LIFE CHANGING 

OPPORTUNITY’, it emphatically establishes 

the reality of the feeling of entitlement of 

the average consumer whenever they were 

bringing out their cash to pay for a good or 

service. The point of patronage is the point 

where customers feel most entitled and want 

to be treated in the best possible way. 

Two key questions emerged from the result 

of ‘The Patronage Optimization Research’: 

(a) How could any company offer ‘LIFE- 

CHANGING CASH OPPORTUNITIES every 

time it is patronized? 

(b) How would a company be able to sustain 

such offers? 

The required answers led to the creation of 

AFRICA’S MOST INNOVATIVE CUSTOMER 

LOYALTY & CELEBRATORY GIFT COMMODITY 

called THE CASHTOKEN. The CashToken is an 

electronic Customer Loyalty & Celebratory 

Gift Commodity that offers life-changing 

cash opportunities to consumers at the point 

of patronage. The Product connects every 

purchase, gift or tax paid to life-changing 

cash opportunities of Five Thousand (₦5,000) 

to One Hundred Million (₦100,000,000) in 

a multi-industry National Consumer Draw 

every week while offering Guaranteed cash 

for Insurance, Pension or Savings for every 

customer. 

The CashToken offers businesses and 

governments a performance-based loyalty 

and reward commodity that best fits their 

“What the average 

African consumer 

really wants, is 

an opportunity 

for life-changing 

cash rewards 

at the point of 

patronage.” 

growth visions. The product doesn’t only 

provide the best opportunity to develop 

emotional consumer equity. It provides the 

most practical way to optimize customer 

loyalty investments while primarily improving 

sales. 

THE CASHTOKEN is by every means a 

revolutionary product that ushers in a new 

era of HYPER CONSUMER CENTRICITY and 

a New Innovative era for connections to 

CONSUMER EMOTIONS. , and Alexander 

Forbes audits its National Consumer Draws. 

The CashToken in its early days has already 

been adopted by Large Retail Businesses, 

Financial Institutions and Key Players in the 

Hospitality Industry. The entry of a major 

mobile network and four top Nigerian banks 

is imminent. 

It is expected that in Two (2) to Three (3) years, 

Nigerians will find it difficult to buy a good 

or service without collecting CashTokens 

as rewards. As at today, almost a million 

Nigerians have been gifted CashTokens and 

testimonies abound of how the cash rewards 

impacted lives positively. 

A new age of HYPER CONSUMER POWER is 

upon us! 

@thesparkng 

13



Banking the Unbanked 

What does CBN’s Payment Service Banks mean for 

Nigeria’s financial inclusion? 

By Endurance Okafor 

The Central Bank of Nigeria (CBN) on 

the 5th of October 2018 released an 

exposure draft guideline in which 

it proposed Payment Service Banks 

(PSB), aimed at deepening financial inclusion 

in a country where only half of its total adult 

population is included into the financial cycle. 

What is PSB? 

PSBs is a payment service initiative proposed 

by CBN in which Banking agents, Mobile 

Money Operators (MMOs), Retail chains 

(Supermarkets), Telecommunications 

companies (Telcos) who are able to present 

an initial capital of N5 billion will be given 

license to operate under the structures 

and guideline specified by the apex bank, 

with the motive but not limited to ensuring 

access to financial services for the unbanked 

rural segments of the society. 

Financial inclusion 

The CBN, in collaboration with stakeholders, 

launched the National Financial Inclusion 

Strategy on October 23, 2012, aimed at 

further reducing the financial exclusion rate 

of adult population from about 53 percent in 

2008 to 20 percent by 2020. 

Several policies and initiatives have been 

introduced by Nigeria’s apex bank to ensure 

that the target is met. The CBN introduced 

the cash-less policy in 2012 as part of efforts 

to reduce the cost of banking services 

(including the cost of credit) and drive 

financial inclusion by providing more efficient 

transaction options and greater reach. 

In collaboration with other key financial sector 

regulators, the CBN in 2006 conceptualized 

the Financial System Strategy 2020. Also to 

further ensure that the financial inclusion 

target is met, the CBN, in 2017, inaugurated 

the Financial Inclusion State Steering 

Committee ( FISSCO) as well as the Financial 

Inclusion State Steering Committee (FISSCO). 

Despite several initiatives including the 

introduction of Microfinance banking, 

Agents Banking, Tiered Know-Your-Customer 

requirement and Mobile Money Operation 

(MMO) in pursuit of this objective, financial 

inclusion rate remains below expectation, 

hence the proposed PSBs. 

Why the proposed PS Banks 

The proposed initiative allows banking agents, 

Mobile Money Operators (MMOs), Retail 

chains (Supermarkets), Telecommunications 

companies (Telcos) to leverage on their 

already existing customer base to include 

more Nigeria adults, specifically those in 

the remote areas to have access to financial 

products and services, considering the lack 

of proximity to, and availability of, financial 

service points (FSPs) — bank branches or 

agents which are meant to provide account 

opening and other customer service activities 

are the major barriers preventing rural 

inhabitants from accessing financial services. 

The project seeks to deepen financial 

inclusion in Nigeria through an integrated 

ecosystem with strong regulatory oversight, 

consumer protection and interoperable 

payment systems with limited concentration 

risk. 

The various agents that will be given the 

license will, therefore, have the right to 

carry out the following services; maintain 

savings accounts and accept deposits from 

individuals and small businesses, which shall 

be covered by the deposit insurance scheme; 

carry out payments and remittance (including 

cross-boarder personal remittance) services 

through various channels within Nigeria; 

issue debit and pre-paid cards; and operate 

electronic purse. 

What Nigerians stands to benefit from the 

proposed PSBs 

It has the likelihood of increasing the 

country’s financial inclusion rate, as it will 

help include more Nigerians into the financial 

cycle; owing to the fact that it will be able to 

provide financial services to the grass root 

communities, who have in the past spent a lot 

of time and money to travel out of the town 

in search of financial services 

“The CBN, in 

collaboration with 

stakeholders, launched 

the National Financial 

Inclusion Strategy 

on October 23, 2012, 

aimed at further 

reducing the financial 

exclusion rate of adult 

population from about 

53 percent in 2008 to 

20 percent by 2020.” 

14 

@thesparkng



Access to Finance 

Entrepreneurs across Africa are often faced with the 

challenge of accessing finance 

By Mayowa Kuyoro 

Access to finance is often quoted 

as one of the biggest challenges 

entrepreneurs face today across 

Africa. In fact, some reports show 

that 85% of small businesses are largely 

underfunded with no access to finance. In 

2014, a poll that was conducted by the U.S. 

State Department showed that 37% of the 

entrepreneurs surveyed, responded that 

funding was the biggest challenge they faced. 

This challenge arises from an availability 

and an access issue. Availability, because 

historically, there hasn’t been a lot of money 

floating around to fund young entrepreneurs 

outside of the usual route of friends and 

family. Access for two reasons – some people 

are not aware of the offerings available, and 

sometimes the conditions required to get 

these funds are not easy to meet – the funds 

often come with a heavy price tag attached. 

The landscape is, however, changing for 

entrepreneurs today, especially those in 

the early stage. Increasingly, governments, 

foundations and even the private sector 

are turning their focus on how to fund and 

incubate young entrepreneurs. In less than 

15 years, Africa will have the largest working 

force population in the world who need to be 

gainfully employed. Thus, ensuring that our 

entrepreneurs today can flourish is critical. 

As a young entrepreneur, there are a few 

sources of funding that are available. Firstly, 

you have the government and other public 

sector lenders who can provide concessional 

financing e.g. the Lagos State Employment 

Trust Fund which not only disburses loans 

at 5% interest but also provides training and 

business support to the awardees of its funds. 

Another government entity trying to provide 

access to finance is the Bank of Industry which 

has schemes for entrepreneurs across various 

sectors from Adire, to Nollywood – and what 

got me excited – a graduate entrepreneurship 

fund which provides up to 2M to individuals 

on the NYSC program. 

Increasingly in this space today, we are seeing 

philanthropic foundations step in to provide 

access to finance to young entrepreneurs. You 

have foundations such as the Tony Elumelu 

Foundation, the Dangote Foundation, and 

even some international donors who provide 

funding to entrepreneurs in Africa. 

Other sources of finance include angel 

investors, venture capital groups and impact 

funds, where we are seeing increased activity. 

These have been around for a while and 

have helped to drive funding, especially 

for technology-enabled businesses. These, 

combined with the government sources of 

funding, have been able to only partially 

meet the need of seed/early stage businesses 

in Nigeria today. 

One model of funding early-stage businesses 

that has slowly been gaining traction in 

Nigeria and across Africa is the Accelerator/ 

incubator model. These programs provide 

business funding, access to mentors, 

collective knowledge and years of experience 

in nurturing startups. 

While not a new concept as these have 

been around in other markets for a while, 

in Nigeria, we are seeing an emergence of 

these institutions backed by different types 

of players. Some examples are the Africa 

Fintech Foundry, Itanna, XL Africa (launched 

by the World Bank and other international 

companies) MEST incubator etc. 

The question I have, however, is how to 

provide access to finance at scale in order 

to create jobs for the potentially 50 million 

Nigerians we will be adding to our labour 

force by 2030? The statistics don’t tell an 

encouraging story. On an individual level, 

at the end of 2016, Nigeria had a financial 

inclusion rate of 58% - the government is 

targeting 80%. 

Although access to finance for entrepreneurs, 

and access to financial services to individuals, 

may at the first pass seem unconnected, 

these issues are intertwined. It is a virtuous 

ecosystem - not cycle as this is not a linear 

problem - that we must aim create. 

An ecosystem with funding, businesses and 

sustainable businesses which help can create 

jobs for our youths. Some of these businesses 

in and of themselves could be solutions that 

help reduce our access to finance issues in 

Nigeria – but they themselves would need 

financing to scale. 

The good news is that providing access to 

finance is on the agenda in the boardrooms 

of a range of players – public and private 

sector, and effort is being made to address 

the issue. Hopefully, with time, we see 

a change in the outcomes across both 

individuals and businesses and dare I say a 

source of innovation on the topic across the 

globe. 

@thesparkng 

15



Herbert 

Wigwe 

16 

@thesparkng



THE SPARK EFFECT 

“The idea was never 

to create a bank that 

was just Nigerian. It 

would be Nigerian in 

ownership but global 

in nature, following 

best practice.” 

Access to 

Diamonds: 

Herbert Wigwe 

Herbert Wigwe has piercing eyes that tell of his brilliance as 

a businessman, his experience as a leader and an unfettered 

desire for innovation and growth of the African Financial 

Industry. 

Just before the Knowledge Sharing Session to rub minds with 

entrepreneurs and young professionals on the ongoing Access 

Bank and Diamond Bank merger, Damilola Oyewusi had a quick 

chat with the banking icon. 

By Damilola Oyewusi 

After thriving through the Soludo 

N25 Billion capitalization era, 

the recession, and six successful 

mergers, there can be no doubts in 

the minds of industry experts, Nigerians, and 

Africans that Access Bank is currently a top 

player in the financial sector with an appetite 

that can only be satiated with continuous 

improvement. 

What started as a 78th ranking in 2003 is today 

one of the most reputable institutions in the 

country. With six mergers and acquisitions 

both in Nigeria and in their other African 

subsidiaries to their credit, we wondered if 

mergers and acquisitions had always been a 

part of the Bank’s business strategy. 

“When we started our entrepreneurial 

journey in 2002, it was clear to us that the 

industry was going to consolidate. We knew 

that getting to where we wanted would be 

a combination of both organic growth and 

inorganic growth.” 

To understand the full ramification of 

inorganic growth, the company engaged 

and sat under the tutelage of one of the 

top banks in the world - HSBC (Hongkong 

and Shanghai Banking Corporation). This 

foresight and preparation ensured a quick 

and fortuitous acquisition when the CBN 

increased the capital requirement from 2 

Billion Naira to 25 Billion in 2005, as the bank 

was already primed for inorganic growth 

through mergers and acquisitions. 

The goal for the bank has always being 

to scale fast while improving the services 

offered to customers. As Herbert explained, 

the institution has always been aspirational 

and focused on achieving and maintaining 

international standards. 

“The idea was never to create a bank that 

was just Nigerian. It would be Nigerian in 

ownership but global in nature, following 

best practice.” 

Following the capitalization exercise that 

made Access Bank one of the top ten in 

the country, they went on to the next level 

of increase in scale and efficiency by raising 

one billion dollars through a GDR. This 

allowed for business expansion in London 

and several countries in Africa. 

Despite the growth experienced by the 

Bank and in the Nigerian financial sector as 

a whole, becoming one of the top banks in 

Africa still eluded the institution. As he notes 

about a country as big as Nigeria, “We don’t 

have more than 40 million or 50 million 

unique bank accounts. And you have a 

population of about 200 million people. This 

constrains the size of the market because a 

lot of money has not been brought into the 

system. If you compare us to South Africa 

with a slightly lower GDP than Nigeria, their 

banks are bigger. For us to dominate or grow 

bigger than most banks in Africa, including 

South Africa, we need to do things that will 

give us the appropriate scale and scope” 

@thesparkng 

17



This need to grow bigger is the key reason for 

the merger between his bank and Diamond 

Bank. 

Access Bank had built a strong wholesale 

business and had in its corporate strategic 

plan a goal to have a global enterprise that 

would be known as Africa’s gateway to the 

world. This meant that the company would be 

handling payments across the continent and 

increasing trade between African countries. 

With a formidable trading capability through 

its presence in London, India, China, Beirut, 

Dubai and other parts of the far, east, the 

bank turned its attention to strengthening 

operations locally, dominating, and growing 

bigger in the context of Nigeria. 

“Our goal is to keep growing our customer 

base. We can hit thirty-five million customers 

in five years and keep growing to fifty, sixty 

or even seventy million customers. We 

would have done all the work needed to be 

done and that would enable us to compete 

favorably in profitability, and balance sheet 

size with the South African banks.” 

Fortunately, Diamond Bank was also thinking 

about the same thing. He highlighted their 

complementary strengths. While Access 

Bank has a strong wholesale and value chain 

business, Diamond Bank has a strong retail 

franchise. 

“We reasoned - What’s wrong with bringing 

ourselves together to create a formidable 

platform that would provide the basis for 

getting stronger and taking a more dominant 

position on the continent? And that’s the 

reason for this partnership” 

One of the goals of the partnership is to 

increase trading activities between countries 

and companies across the continent, and 

technology will be one of the key factors 

for growth. With the rise of more fintech 

companies and the increasing activities 

of telecoms companies in mobile money 

solutions, we asked Herbert if he thought of 

these as competition. 

“We embrace change. When I tried to sell 

debit cards twenty-five years ago in Nigeria, 

it was impossible. But today, debit cards are 

going out of fashion because people are 

making payments via telephone. Cheque 

leaflets are almost obsolete. We have to 

reconfigure what we think about money and 

the things we do. What we’ve done is to pull 

our digital businesses close to us, so that if 

there is any disruption, it will be coming from 

us” 

He said they also collaborate with the Fintech 

businesses, noting that compliance issues 

like KYC, anti-money laundering and other 

best practices remain important to the bank 

even as they seek to innovate and work on 

groundbreaking technology. 

“In a few years, you may be able to drop your 

card and phone and make payments with 

your biometrics. We already do this with our 

phones. We could just configure your details 

to your retina. Mankind has learned more 

about itself in the past twenty years than all 

of the thousand years preceding that twenty. 

Things are changing fast and we are excited 

to be a key player with that” 

The partnership also aims at becoming 

the largest retail service provider in Africa 

and as such would pay key attention to 

young businesses and entrepreneurs. He 

gave an insight into some of the challenges 

experienced by SMEs and the solutions they 

already provide and are looking to provide to 

this market in the coming months and years. 

He began with enunciating the need 

for training on things like finance and 

bookkeeping and generally, building 

capacity. Next to this is the lack of access to 

capital, noting that most financial institutions 

don’t pay attention to them. He explained 

that the larger institution intends to create 

a framework that would support these 

businesses in a manner that is affordable. 

“Training and funding many businesses at 

once will be challenging and even, ineffective. 

We are looking at ways to automate the 

process or have them in batches” 

He pointed out some of the ways they have 

supported SMEs, giving the example of how 

the GSM companies’ entry into the Nigerian 

market created business opportunities for 

young Nigerians, who were supported by 

the Bank. He also noted the special attention 

paid to female entrepreneurs through the 

Gender Empowerment Movement in the 

early 2000s which ultimately evolved to the 

W Initiative, as a total package provided for 

female customers. 

Giving an example of how the management 

capabilities of women enable them to be 

excellent homemakers, he enunciated that 

female entrepreneurs hold the potential 

to take the economy to new levels when 

provided with the needed support. He told 

the story of the first move made towards 

this empowerment, with a commitment to 

support fifty women and take their businesses 

from nothing to fifty billion Naira. The success 

of this project led them to shore up efforts 

and begin exploring a holistic approach to 

providing female entrepreneurs and women 

in general with the right support for success. 

He further explained that the package was 

targeted at women for various stages of 

their lives, including providing assistance to 

families experiencing trouble with completing 

their families. 

A third challenge he notes is the lack of 

courage and commitment to the process on 

“When we started our entrepreneurial journey in 2002, it 

was clear to us that the industry was going to consolidate. 

We knew that getting to where we wanted would be a 

combination of both organic growth and inorganic growth.” 

“Some people 

do not think it is 

important but I 

think God needs 

to order your 

steps in the right 

direction.” 

the part of the entrepreneurs themselves. He 

went on to share some of the principles that 

have kept him through his entrepreneurial 

journey. 

The first of these, he says is “Focus. Focus. 

Focus. It doesn’t matter what you do. If you 

do it well, you will do well”. 

“The second is competence. You have to 

be knowledgeable and competent enough 

to deliver what you promise. Because with 

that, you’ll be able to navigate through the 

difficulties that go with any entrepreneurial 

endeavor. It doesn’t matter what business 

you are doing, the entrepreneurial risks are 

the same. To ensure success, you have to be 

competent” 

“The third, of course, is your confidence in 

yourself and you’ll be tested several times. 

And the most important is God’s, Divine 

Grace. Very important. Some people do not 

think it is important but I think God needs to 

order your steps in the right direction.” 

For someone who has spent almost three 

decades in the industry, we wanted to know if 

anything has challenged his resolve and how 

he would describe his experience so far. 

“Well. I’ve been tested in several ways but not 

to the extent of having my resolve broken. 

My experience has been thrilling, fulfilling, 

and exciting. It is a rollercoaster but you know 

what, I enjoy it.” 

18 

@thesparkng



The Connect 

Herbert and Uzoma Engage Entrepreneurs in a 

Knowledge Sharing Session 


A 

strategic partnership is one of 

the trusted vehicles that drive 

a successful entrepreneurial 

journey. This belief is what 

motivates The Spark by BusinessDay to 

connect beneficiaries with the benefactor, 

the start-ups with the big guns to create a 

symbiotic relationship where both parties 

learn from each other. 

It is also clear that this understanding 

inspired the marriage between Access Bank 

and Diamond Bank. True to the culture of 

The Spark, we organized a Knowledge 

Sharing Section in order to connect the 

banks with our young entrepreneurial 

audience. 

Present at the session were young business 

owners and professionals from various 

industries, all eager to engage the two 

leading men of the merger process. 

Hungry with a need to understand how 

the new partnership would be of benefit 

to their businesses, questions flew in 

from every corner of the room. The two 

CEOs were gracious enough to extend 

the one-hour session by thirty minutes 

as the brilliant minds of young forwardthinking 

Nigerians quizzed them on issues 

of account maintenance, plans for the 

creative industry, technology, business 

integration and expansion in other African 

countries, branding, and lots more. 

Key takeouts from the event 

- The merger is aimed at leveraging the strengths of both institutions to get one 

strong entity that can compete adequately in the African financial space. 

- The merged entity will maintain the name ‘Access Bank’ 

- Accounts can be run as is. Customers with accounts in both banks can make their 

own choice on which to continue with. 

- Banking products, including the Mobile Banking applications and other 

technological solutions, will be merged gradually and integrated to deliver better 

service to customers. 

- The Bank has a physical presence in *8* African countries, as well as the middle 

east and the UK. They intend to have many more to ensure that businesses can 

conduct trade and expand their operations with considerable ease. It would also 

give Nigerians trading in those countries a sense of belonging. 

- In addition to physical locations, the Bank is working to ensure they own a large 

market share of transactions between businesses across African countries using their 

financial technology solutions. 

- The Bank will pay close attention to the creative and entertainment industry with 

their first move being engagement with the industry personnel to understand their 

business model and how to best design the solutions. 

- They will continue and deepen their support for women under the merger aegis of 

The W Community and Diamond Woman 

- The Bank will continue working with MSMEs through partnerships, training 

programs, and funding. 

- The merger would be a gradual process, with the customer’s actions and reactions 

being the key determinant of the decisions taken in the course of the coming 

months and years. 

The session was a success as it served to increase the knowledge of the customers and 

stakeholders to the culture and expectations of the merger. 

On a personal note, both Bank CEOs were consistent in their encouragement of the entrepreneurs 

in session. With many years in the field, they shared strength and tips garnered over the years. 

One of the most profound of these was a quote shared by Herbert Wigwe - “Fortune favors 

the brave. Be brave.” 

@thesparkng 

19



UZOMA 

DOZIE 

20 

@thesparkng



Access to 

Diamonds: 

Uzoma Dozie 

With suave looks and varied interests in 

food, travel, photography, and startups, 

it is not surprising to see why Uzoma 

Dozie and Diamond Bank are celebrated 

for their exploits in the Retail market. Our 

Managing Editor had the opportunity to 

have a brief chat with the visioneer just 

before the Knowledge Sharing Session 

organized by The Spark’s team to discuss 

the merger with young entrepreneurs 

By Oge Modebelu 

Uzoma is one of the few C-Level executives 

in Nigeria with an active Instagram 

account, connecting with the young 

populace who hold him in high esteem as 

a role model. While acknowledging the attention 

and expectations that come with it, he said that 

his principle on life revolves around trying to be 

oneself and building on one’s strength. 

“Success comes from helping people and focusing 

on what you are good at.” 

His foray into the core business of banking began 

in 2006 with building a personal banking division 

at a time when technology started playing a big 

role in the industry. 

“Banking became more than just providing a 

current and savings account and basic banking 

services. Technology made us do so much more 

and create more products and services than we 

could ever do.” 

“With our shared platform we 

can do so much more for women 

and youth, and for FinTech, a lot 

of value will be added.” 

@thesparkng 

21



“We are economic 

agents, we make a 

fraction by helping 

people, providing 

daily solutions, by 

adding value.” 

This season heralded pivotal changes in the 

way Diamond Bank approached marketing 

to people. By the time he became the MD 

of Diamond Bank, they knew exactly what 

they had to do. The institution became 

mobile-driven and technology-based. They 

immediately leveraged how technology 

helped small businesses carry out many 

of their operations with ease. This not 

only encouraged these SMEs to bank with 

Diamond Bank, but provided access to 

finance and access to the market. In addition 

to this changes in technology and business 

solutions was a focus on understanding and 

relating with the customers at their own level. 

“We also started doing a lot to change 

organization culture, going beyond banking 

and redefining what banking means and 

customers’ perception to it.” 

The result of this has made Diamond Bank 

a belle in the retail service provision in the 

country. This came through with its own 

attending challenges. One of these was 

the people factor and the resistance to 

innovation. 

“Change is always difficult. We have the 

largest mobile app base in Nigeria and it was 

not so in the beginning. Trying to convince 

people that this was the future was not 

easy. Especially with mobile banking. This is 

a mainstream business so finding ways to 

convince people by showing them the benefit 

has been the hardest challenge” 

One key strategy deployed during this 

onboarding period was going into the 

underserved middle market consisting of 

small businesses in the open markets. As 

bankers from several other Nigerian banks 

would confess, their efforts to sign on spare 

parts sellers and the market women were 

quite often met with ‘Na Diamond I dey use”. 

“It was in our DNA to go to places no other 

bank was going to and thanks to technology 

this was doable. We used the integrated 

banking system which enabled the customer 

to deposit money and collect from another 

branch, another state, anywhere, those were 

things that were not being promoted at that 

time.” 

In order to boost their efforts, the Bank 

partnered with several organizations like the 

Lagos Business School to initiate the BET 

(Building Entrepreneurs Today) program. 

The project has been on for over seven 

years now, with hundreds of entrepreneurs 

passing through the six-months intensive 

training annually. About 20 of these have also 

received seed capital of N3,000,000 each to 

boost their business for success. 

With these robust projects to assist 

entrepreneurs either start or scale their 

businesses, the institution focused more on 

the stories behind each business as against 

just their potential for cash flow. 

“Everything is about stories, we look out 

for common interests and aspirations, and 

people that share our ideologies. We believe 

in inclusiveness. We believe in gender 

diversity. We believe in the youth.” 

He went on to highlight some of the 

challenges these businesses encounter, 

noting that getting access to advise and 

business consulting early on in business is 

hard, yet very pertinent. In addition to this 

is the difficulty with getting the right advice 

on marketing, access to the market, taxation, 

and business growth. 

“There are not enough organizations in 

Nigeria offering business support to small 

businesses. There isn’t the ease of doing 

business in Nigeria; everybody suffers for 

that, but with advice, the early pangs are 

averted.” 

He notes that the desire to reach and help 

more entrepreneurs is one of the reasons 

for the merger between Diamond Bank and 

Access Bank. Under the new combined entity, 

the bank will be one of the largest retail 

platforms in Africa and globally. They already 

have footprints in Asia and Europe and are the 

biggest African bank in the United Kingdom 

which in the commercial hub of Europe. 

“Our customer now has access to over three 

thousand Automated Teller Machines, the 

cost of doing business becomes smaller. 

With our shared platform we can do so much 

more for women and youth, and for FinTech, 

a lot of value will be added. For our staff, 

with over twenty-nine million customers, we 

have the best people on the job, and with 

this marriage, there will be a lot of shared 

learning experiences. They are excited about 

this.” He nodded with satisfaction. 

Addressing the concern of profitability being 

the soul of the partnership, Uzoma explained 

that the merged entity will also concern 

itself with sustainability and corporate social 

responsibility, saying, 

“I do not know a lot of people that have 

made money without helping people. If you 

look at Bill Gates, for example, he provided an 

operating system for nearly every computer 

in the world.” 

Closing out on the serious banking issues, we 

wanted to know how he spends the first hour 

of his day. 

“I wake up, browse through the newspaper, 

get to the office, talk with people, which 

comprises most of what I do during the day 

at the office and then do the paperwork at 

night” 

We also wanted to know what his staff 

admired about him that he agreed with one 

hundred percent. 

“What you see is what you get” 

“Success comes from 

helping people and 

focusing on what you 

are good at.” 

22 

@thesparkng



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23



SPECIAL FEATURES 

Oluseyi Kumapayi: 

The Finance Guru 

Passionate, driven and brilliant are some of the 

words that describe the Chief Financial Officer of 

Access Bank Plc. In the midst of his busy schedule, he 

was gracious enough to take us through his journey 

in the banking industry. 

By Oge Modebelu 

Back story 

“I went to school to study engineering. I 

honestly had a passion for engineering. 

After school, in that waiting season for a 

job, I had a conversation with my cousin, 

a Chartered Accountant. He asked me to 

apply for this banking job, I passed the test, 

aced the interview, and went to a training 

school for three months. I realized that all the 

skills I learned in engineering all came to play 

– logical reasoning and probability. The most 

profound part of the training was the lectures 

on the “Seven Habits of Highly Effective 

People” which shaped my outlook on life. 

Work started, and it was the environment I 

desired to achieve my objectives, that it was a 

bank did not matter. 

It has been twenty years of doing what I enjoy 

doing most, working with the best minds in 

the industry. If I had to go back, I’d do this 

all again.” 

Changes experienced in 

the Nigerian Banking Industry 

Technology innovation is probably one of the 

most critical changes in the banking industry 

over the last twenty years or so. The business 

of banking is all about risk management, and 

with technology came a switch to consumer 

taste and demographics, new products and 

services, new geography, new channels, and 

new currencies. The other significant change 

would be regulations. To protect systemic 

stability, regulations have to be introduced. 

Experience serving as 

Chief Financial Officer 

Over the last ten years, the role of the Chief 

Financial Officer all over the world has moved 

to be more strategic and essentially, it is now 

at the heart of the business. We operate in 

a VUCA (Volatile Unpredictable Complex 

Ambiguous) world; I find fulfillment in being 

able to steer the organization towards 

achieving its objective amidst these dynamic 

issues. 

Influence of technology and 

branding in Banking 

Technology has changed the way we think, 

the way we do business, the way we manage 

people and the way we manage our customers. 

Take a look at what the FinTechs have done 

to the banking industry and how they have 

taken some market share, especially in the 

payment and lending section. We predicted 

this, and we started partnering with startups 

to ensure that we incubate them, accelerate 

them and provide as much support as we can 

whenever the opportunity or need arises. 

Access bank and Diamond bank merger 

We want to be Africa’s gateway to the world. 

As Africans, nobody tells our story better 

than us. We want to demonstrate that a truly 

global institution can come out of Nigeria 

and Africa, and this merger gets us closer to 

that. This combination makes us the largest 

retail bank in Africa; this combination gives us 

“You will not succeed 

in anything without 

being focused and 

disciplined.” 

24 

@thesparkng



twenty-nine million customers and the largest 

channels in Nigeria. This merger harnesses 

the strength of Diamond Bank which is retail 

and the strength of Access Bank which is 

wholesale, which births a truly diversified 

bank providing to a diverse market. 

The Nigerian economic 

predictions for 2019 

The consensus that we see of the GDP is 

between 2.3 and 2.5. We think that the 

inflation will still be under 12%, it has come 

under pressure in the last report. On the 

reserve side, we believe it will stay between 

$42 to $44 billion depending on where the 

oil price swings to. We also think that if there 

is going to be any exchange rate adjustment, 

it is going to depend on the level of reserve. 

It’s an election year so we might not see that 

much at the start of the year, but as the year 

continues, economic activities will pick up. 

On measuring value for money to be spent 

We are all looking for a return on investment. 

Essentially how does particular money spent 

help the bank achieve its objective, increase 

revenue for the bank and improve service? 

Secondly, we look at if it’s an investment for 

the future and finally, we look out for the cost 

of ownership regarding determining value. 

SMEs and entrepreneurs proposals 

We want a reliable, executable and realistic 

plan. A plan that explains what value you are 

creating, which market you are selling to, who 

your competitors are, your understanding 

of the business, what risk is involved in this 

business and most importantly the passion 

of the promoters of the business. Finally, we 

ascertain whether the idea of the SME in view 

aligns in some way with the business that the 

bank does. 

On startups growth constraints 

The first issue has to be the financial 

constraints. With a high collateral 

requirement, a limitation to financing 

options and a shortage of venture capitalist 

companies to provide support in Nigeria, 

finance becomes such a challenge for young 

companies. The other is around management 

capacity, I see this every day: So, you see an 

IT startup with three or four staff, all they 

know is IT, as the company grows they don’t 

have systems, structures or processes, there’s 

no differentiation between the head of the 

business and the business and therefore 

what you find is that for a bank to lend you 

money would be nearly impossible, because 

management capacity is missing. On the 

policy perspective, there are two things - 

Infrastructure and Political Environment. 

The solution to the challenge of management 

capacity, it is pertinent to separate the 

person from the business, start building up 

a credit history. On the business account let 

it be evident that there is money coming in 

and out because at the end of the day the 

bank will take this into account before being 

of assistance. Also, no matter how young 

a company is, find somebody who does 

the finance and accounting; I see a lot of 

“This merger harnesses 

the strength of Diamond 

Bank which is retail and 

the strength of Access Bank 

which is wholesale, which 

births a truly diversified 

bank providing to a diverse 

market.” 

entrepreneurs and business owners that do 

not know the difference between profit and 

cash flow. 

On management capacity, it is wise to 

make that investment in training in building 

capacity, leadership and people management. 

As a firm starts to get bigger, technical skills 

begin to diminish, and these other skills take 

center stage. 

Advice for a young professional in finance 

Young professionals have to be focused and 

disciplined; you must be deliberate about your 

life. You will not succeed in anything without 

being focused and disciplined. Another is 

being a solution provider to people that 

come around you on a daily basis. Finance is 

about being solution- minded. Also, because 

finance is about money, you cannot afford 

to make mistakes, strict attention to detail is 

needed. Finally, you must have the ability to 

think strategically, not just about the present 

but the future. 

Hobbies 

I like football, I support Arsenal, but that 

is another story. I am now emotionally 

disconnected from the club, the last three 

years have been traumatic, but I guess I’m 

getting over it. I also like to teach, impart 

knowledge and I believe that I have a lot to 

give. I want to share this with people so they 

can learn and get better at what they do. I 

also love Corporate Social Responsibility. I 

think that there is a need to give back, there 

are a lot of people who require help and 

helping them brings me fulfillment. 

Alternative career path 

Management consulting, and the reason 

is the skill-set that I have, the way that I 

think, my ability to think under pressure, 

and everything that I am now, you see in a 

consultant. 

Favourite book 

I read a book last year, Extreme Ownership 

by Jonco Willink and Leif Babin. It speaks 

on a sense of accountability and taking 

responsibility. Don’t give excuses, do it. If it 

requires you teaching people how to do their 

job, get it done. Leadership is in every part 

of life and business. The writers are ex-Navy 

seals who brought their combat experience 

to being in business especially concerning 

decisions made in the battlefield. I have 

recommended this book to many people. You 

should read it too. 

@thesparkng 

25



Amaechi Okobi on 

The New Brand 

Identity 

Amaechi Okobi is the Head of Strategic Brand 

Management at Access Bank Plc. In this interview with 

us, he gives an insight into what can be expected with 

regards to the new brand outlook in the wake of the 

merger between Access Bank and Diamond Bank. 

By John Iyoha 

First reactions at the news of the merger 

My first reaction was one of excitement, the 

fact that we have a five-year strategic plan 

that involves a certain number of customers 

and now, with this merger, we are well ahead 

of schedule to achieving that goal. I was also 

excited because I know Diamond Bank and I 

know what they are good at. I also know what 

we are good at, and so the idea of these two 

companies coming together definitely excited 

me. Additionally, from a legacy standpoint, I 

was excited to work on something this huge. 

The most important part of external 

communications around the merger 

This has to be the fact that we both have 

customers that love both brands. Letting 

them know that all is well in the midst of 

all of this is critical. The essence of the bank 

they know and love will remain intact, and 

communicating this has been paramount. 

Coming together was done for the sole 

purpose of giving more value to the customer. 

Getting staff onboard during this merger 

process 

It’s critical. For everything you do, your 

employees are your first point of call. A lot of 

uncertainty can come with a move like this, 

putting your staff in the know at every turn 

is how we averted the panic that comes with 

change. Staff can be your biggest advocate, 

and if you take them along the journey and 

they are comfortable knowing they have all 

the information they need, they will be great 

allies. 

Considering differences in corporate 

culture, how has the synergy between 

both banks been during this transition 

process? 

Diamond Bank is more of a retail bank, and 

Access Bank is more of a wholesale bank, and 

we are both good at what we do. There are 

also differences in our corporate culture, for 

example, the dress code - when your focus is 

retail versus when it is wholesale, there will 

be a difference. So, yes there are differences 

we would have to learn from so that the 

larger new entity can operate as one. We are 

focusing on each other’s strength as we try 

to downplay the weaknesses with a mind to 

moving forward. So, there are synergies and 

it our job to find them and exploit them. 

The most challenging part of the 

communication process so far 

Trying to get information out on time, trying 

to inform our staff and customers before the 

rumor mill does. Staying ahead of the pack 

on stories that concern us is the challenge. 

Changes we should expect about the new 

brand identity and culture 

It’s not too early to talk about what the new 

entity and brand will look like, the logo that 

you all know as Access Bank or Diamond Bank 

will definitely evolve. Just as we are merging 

businesses, customers and employees, we 

are also going to merge the logo. The logo 

will be considerate of Access Bank and their 

customers and their love for the brand as well 

as Diamond bank and their customers and 

the love for the brand 

What’s next? 

Right now, most of our staff are all excited. 

We all want to succeed and we know that this 

merger is a step towards that success. We are 

looking forward to it. 

“The essence of the bank 

they know and love 

will remain intact, and 

communicating this has 

been paramount.” 

26 

@thesparkng



Robert Giles 

on Retail, 

Tech, and 

Innovation 

Head of Retail Banking, Diamond 

Bank PLC, in this interview with 

The Spark team highlights the 

expectation between the marriage 

between Access Bank and Diamond 

Bank, especially as it concerns retail, 

technology, and innovation. 


Thoughts on how the merger will play out 

We have a unique opportunity to combine 

the retail strength of Diamond Bank, with 

the corporate strength of Access Bank, 

to produce a bank that has something 

for everyone. We expect to deliver better 

outcomes for customers in terms of speed, 

security, and service. Diamond Bank 

customers will benefit from the strong 

treasury services and products from Access 

Bank and Access Bank customers will benefit 

from the retail products of Diamond Bank. 

We have already announced that 3,100 ATMs 

can now be used for free by customers of 

both banks – giving a tangible benefit in the 

pockets of our customers. As we get closer to 

the legal merger, the same will be rolled out 

for transfers, cheque clearing and of course 

access to a much-enlarged branch network. 

The key focus for retail services 

With the combination of both banks, we 

will truly be ‘a place for everyone’. We will 

continue to support financial inclusion 

through our partnerships with MTN and 

Airtel to provide digital financial services. 

We will enlarge our proposition to support 

market traders – BETA – and we will combine 

our shared philosophy of supporting women 

and youth. For instance, we will roll out 

the W Power Loan across both banks very 

quickly. We also both share the philosophy 

on using digital to drive better outcomes 

for customers – we will continue to invest 

in digital solutions to financially include and 

serve customers better. 

Assuring the retail market 

We will like to assure the retail market that 

nothing will change! Please continue doing 

your business with us as you already have. 

Your account number will be unchanged. 

Your card and cheque book will continue to 

“Diamond Bank customers 

will benefit from the strong 

treasury services and 

products from Access Bank 

and Access Bank customers 

will benefit from the retail 

products of Diamond Bank.” 

work until its normal date of expiry. We are 

planning this merger around the customer 

and will not do anything to disrupt the things 

that work for you today. We will only enhance 

them. And we will keep communicating with 

you as we go through this merger so nothing 

comes as a surprise. As a customer, you are 

now a part of the largest bank in Africa by 

customers and will not only have access to 

the best service in Nigeria but in the key 

financial centers of the world – the UK, Dubai 

and soon in China. 

Ensuring a seamless service 

during the transition 

It is very important that there is no disruption 

for customers. We are working to ensure that 

whatever we do with technology, we will make 

it invisible to the customer who will continue 

to enjoy services in a seamless manner. Be 

that card, mobile app or internet banking or 

branch and ATM – we will be there for you 

when you need us. The entire integration plan 

is built on a simple philosophy – if a decision 

takes a service backward for a customer, 

we will not take it. Every decision we make 

will either retain a customer experience or 

enhance it. 

Plans to integrate the 

technology solutions of both banks 

We will bring our platforms together. This 

is a very unique situation in the country 

where two banks share the same banking 

platform and the same channel management 

platform which means we have a common 

understanding of each other. 

The most challenging part 

of the process so far 

We are really happy with how the process is 

going. We are ahead of our initial estimates 

on timelines for the legal merger, having 

obtained CBN and SEC approval in principle. 

Our focus will be on ensuring we keep 

communicating with our customers, staff and 

other stakeholders so everybody is up to date 

with the exciting progress of creating this 

strong institution. 

What customers should look out for 

We are coming together to give you more. 

Look out for our ATMs – you can use them 

for free whether you bank with Access Bank 

or Diamond Bank. Be ready for the launch 

of Diamond Xtra season 11, giving savers 

the opportunity to win salary for life. Look 

forward to free transfers and access to all 

of our branches from the date of the legal 

merger. And of course … look out for the 

Lagos Marathon on 2nd February – we are 

running it together! 

@thesparkng 

27



28 

@thesparkng



Mergers & 

Acquisitions in 

Nigeria 

Mergers and Acquisitions are a 

simplified complexity 

FEATURES 

By Deji Kurunmi 

Mergers & Acquisitions traditionally 

referred to as “M&A” is one of 

the components or disciplines 

in corporate finance that deals 

with how independent corporations seek to 

leverage synergies to achieve a variety of 

corporate objectives. Such objectives may 

be to leapfrog growth, consolidate market 

leadership, reduce competitive rivalry, 

diversify cashflow sources, hedge forecasted 

risks etc. 

To put it simply, M&A originally describes 

two types of corporate marriages. A merger 

is one where the combining corporations 

are relatively at par in terms of commercial 

value – hence they form a new entity. It is not 

uncommon to find the new entity retaining 

the brand collateral of the combining entities. 

An acquisition, on the other hand, is when 

a larger company “swallows” up a smaller 

one. A new company is not formed, and 

the smaller company often stops to exist. 

Now, the lines separating these two types of 

corporate combinations has been blurred. 

In modern financial parlance, a merger is 

a friendly deal where shareholders and 

management on both sides are generally 

happy to do the deal. An acquisition, on the 

other hand, is seen as a forceful or hostile 

deal where there is disaffection by some 

shareholders or a revolt by management. 

Whichever direction the pendulum is 

swinging, a finance person working on a deal 

will simply say “I have an M&A transaction”. 

Giving the foregoing, it is perhaps clearer 

now why both Access Bank and Diamond 

Bank are referring to their deal as a merger. 

Many analysts have been very quick to 

write epistles on why it is not a merger but 

an acquisition. Beyond the more modern 

technical use of either term, it seems clear 

to me that there are critical imperatives 

“M&A is simply a 

combination of strengths 

and opportunities to reduce 

the effects of weaknesses 

and threats. Any M&A that 

does not fulfil the above 

terms is just a jamboree.” 

necessitating both banks to present the deal 

as a friendly combination. If both banks do 

not control the narrative as they are clearly 

working very hard to do, the advantages 

of the deal may vaporize very quickly, and 

Access bank will be the biggest loser. 

Access Bank has not veiled their purpose for 

this merger: leapfrogging the growth of the 

retail vertical. In order to achieve this and to 

ensure that the high-value retail customers 

don’t exit Diamond Bank even before the 

deal is closed, it became critical to control the 

media narrative of this deal. 

It became apparent as well that Access Bank 

needed to respect what Diamond Bank has 

achieved over the years. 

Analysts following this deal have heard things 

like: 

The Diamond Bank mobile app would remain 

just as it is. 

Prolific products of Diamond Bank will be 

retained just as it is. 

The staff is safe, no need to panic: the new 

bank is big enough for everyone. 

If you have accounts in both banks, they 

would not be combined by default. 

We won’t be shutting down branches etc. 

All these are deliberate attempts to 

communicate to Diamond Bank customers 

that whatever you love about the Bank will 

remain, hence, no need to go elsewhere. 

Now I know that the captive audience here 

is mostly young entrepreneurs and those 

charting an upwardly mobile career. So 

what lessons can be learned or how can the 

concept of M&A be distilled for utility by 

growing businesses? 

Perhaps, I should give my own simple 

definition of an M&A: 

M&A is simply a combination of strengths 

and opportunities to reduce the effects of 

weaknesses and threats. 

Any M&A that does not fulfill the above 

terms is just a jamboree. 

It is often said that 10% of something big is 

better than 100% of nothing. I am convinced 

that many promising businesses that have 

shut down and eroded shareholder value will 

still be existing today if M&A was thought of 

as a survival or growth strategy. M&A is not 

just for grand scale businesses. The concept 

can be leveraged by SMEs and even startups! 

There is an IT company in Lagos that used 

to be vibrant but lost a lot of its energy 

and consequently, some prized talents. One 

of the co-founders is also quite distracted 

and the future was looking bleak! This IT 

company, however, has very prized clients 

in the financial services space – very prized 

relationships! The smart Co-founder has 

approached a smaller IT company with a lot 

of energy, positivity, razor-sharp focus, talent 

and market aggression for a merger! Well, 

the deal is done as I write and suddenly, they 

both have the prospect of a much brighter 

future together. 

M&A is more complex at a larger scale and 

lays huge demands on intellectual rigor, 

logical creativity and networking ability of 

those who work to broker such deals. As 

with all things finance, clarity of thought 

for decision making comes when you can 

quantify RISK! Simple! 

Wish you all good luck as you pursue a 

purposeful living. 

@thesparkng 

29



The Rise of Payment Solutions 

There is an increase in the growth of e-commerce which has, in turn, 

necessitated the increasing use of payment solutions. 

By Mayowa Owolabi 

Technology is advancing, and one 

of the effects of technological 

advancement that we can see is the 

rise of e-commerce. The main factors 

responsible for this are the internet and 

Smartphones. 

The internet has given access to a market 

segment and customer base that was 

inaccessible before now, eliminating distance 

and the need for a physical shop or outlet. 

The Smartphone has now even literally 

brought that customer base to your 

fingertips. Platforms like Facebook, Twitter, 

Whatsapp, Instagram, Snapchat and Youtube 

have added a social factor to it and reduced 

the barriers to entry as you don’t need 

your website, just a camera or Smartphone 

and you can sell/advertise your goods and 

services. 

Consequently, the rise of e-commerce has 

also necessitated the adoption of online 

payment solutions. Online Payments are 

catching on mainly because of the ease 

they provide the customers and merchants. 

The volumes of payments made via digital 

channels keep increasing on a daily basis 

(digital channels - web, POS, USSD, and 

transfers). 

Also, more and more merchants are advising 

“The Smartphone has 

literally brought that 

customer base to your 

fingertips.” 

customers to make payments online or 

introducing online payment channels, thus 

pushing adoption rates, e.g. - Cable TV (DSTV, 

Netflix, Iroko TV) and even payments for local 

exams and certifications (JAMB, WAEC, IELTS) 

and visa applications. 

Despite the apparent growth, there are 

challenges. 

One of such challenges is online fraud. It is a 

major challenge with payments globally and 

more-so in Nigeria. This affects merchants 

and customers in several ways, from 

fake merchants who “sell” online and get 

payments and disappear after that or deliver 

poor services or substandard goods to 

customers who steal payments instruments 

and use them to pay genuine merchants. 

Transaction charges are another challenge 

of payment solutions in Nigeria. Most 

merchants are price sensitive and at times 

don’t want to pay the transaction charges 

for accepting digital payments, and in some 

cases, they pass it on to the customer(s) or 

increase prices. 

The two challenges mentioned above can be 

summarized as “Trust.” 

The practitioners are, however, doing all they 

can to ensure Nigerians get more comfortable 

with online payments. They are handling 

this in several ways, from advertisement 

to supporting small businesses who in turn 

act as ambassadors for them. Companies 

like Quickteller, Flutterwave & Paystack are 

known to do this. They also organize regular 

workshops and seminars to showcase the 

benefits and advantages of online payments. 

There are undeniable changes and 

innovations. For instance, in the area of 

data security which is pretty advanced 

and handled in several ways depending 

on the payment processor (also known as 

payment gateway or aggregator), all players 

are required to be PCIDSS compliant, and 

2-factor authentication (2FA) is the order 

of the day. Transaction data gets encrypted 

both ways. 

Financial inclusion and online payments are 

often connected but it depends on the way 

you look at it. On one hand, there isn’t much 

connection. However, only the financiallyincluded 

use online payments or digital 

payment channels for that matter. So the 

more financially-included people, the more 

the chance that they would make online 

payments. 

As we’ve seen over the years, there are lots 

of “next big things” in the online payment 

sector. Some have suffered from low 

adoption in Nigeria (e.g., QR code payments) 

and some have enjoyed massive success 

(Tokenization of cards/accounts). Market 

readiness determines what works. Things 

like multi-account or card payment channels 

like OnePipe (www.onepipe.io) and USSD 

payment aggregation like CoralPay’s CGATE 

are developments to look forward to. 

Non-Bank led payment services on WhatsApp 

(P2P payments) is definitely going to be BIG 

and being easily accessible to people, will 

drive financial inclusion in the less urban 

markets. 

30 

@thesparkng



MSME Lending 

“Getting access to funds is usually difficult for SMEs but it is not impossible”. 

By Tunde Kehinde 

SMEs are the lifeblood of any economy. 

However, given the diversity of small 

businesses and lack of credit scoring in 

frontier markets, it has been historically 

tough to get capital to small businesses 

consistently. 

Fortunately, companies like Lidya fixes that 

problem by using a data-first approach to 

evaluate small businesses and using riskadjusted 

credit scoring to deliver tailored 

offers and pricing that are unique to each 

SME we finance. This approach has been 

used to give Billions of Naira in credit to 

small businesses across multiple sectors; 

everything from financing to mobile money 

agents to exporters of commodities. 

The major problem, of course, with lending 

is the risk involved, on both the part of the 

lender and the SMEs. The risk we evaluate is 

typically around, can this business afford to 

take on credit and if so, how much? And also 

is this a sustainable business that will repay. 

So far, we have had great success backing 

great businesses owners who have taken 

credit to grow their businesses, and Lidya has 

had less than 0.5% in defaults. 

We are also big on a partnership to get 

credit to small businesses; we work with 

over 100 partners in Nigeria including 

three commercial banks, multiple payment 

gateways, consumers goods companies and 

more. We use our credit to get capital into 

their value-chains to help them, and the 

small businesses in their ecosystem grow in 

a responsible, sustainable way. 

The lending system for SMEs is unfavorable 

at the moment. Our estimate is the credit gap 

for small business in Nigeria is $75 Billion+ 

USD. This is a particularly big challenge for 

the country as SMEs typically contribute up 

to 80% of jobs in a country and represent 

~50%+ of GDP in economic activity. The 

challenge for lenders worldwide is how to 

lend to SMEs in markets which lack credit 

scoring. Lidya solves this problem through 

our digital platform, where we analyze over 

100 data points to help great business 

owners’ access financing in 1 day and build 

a credit score through a secure and inspiring 

lending process. 

Having multiple sources of funding for small 

businesses is great. What we focus on is 

being the best source of funding for small 

businesses and getting them credit in 1 day 

and also supporting them with great products 

to help them digitize their businesses. We 

give free invoicing tools so our customers can 

invoice their customers and get insights on 

their businesses. Through our partners, our 

borrowers can get point-of-sales machines 

to help them take digital payments. We are 

also launching a credit card, that will give 

businesses an option to pay for goods and 

services digitally as well. 

There are a number of institutions that 

make access to funding easier; non-profit 

organizations like TEF, government funds 

such as the BOI fund, and the financial 

institutions that are SMEs-friendly. Lidya also 

helps small business access credit in one day. 

Visit www.lidya.co to learn more. 

@thesparkng 

31



10 Organisations 

that drive Financial 

Inclusion 

If there is one thing technology 

is synonymous with, it is putting 

everybody on a level playing 

field regardless of demography 

and social class. If we all have 

standardized tools, then just 

anybody can participate, anybody 

can win. In business and the 

economy, Financial Inclusion is 

key to that level playing field. 

Below are ten startups that are 

driving financial inclusion to level 

the playing field in the economy. 

By John Iyoha 

every month and with a cosign by 

the CBN, Remita has become one of 

the leaders of the industry. Being a 

comprehensive payment solutions 

company, the solution is being used 

by millions of people and thousands 

of organizations. They are also 

the handlers of Nigeria’s Federal 

Government’s Treasury Single Account. 

Established in 2002 as a payment 

processing company set up to create 

an Africa where payment is an invisible 

part of everyday life. With an innovative 

team that is bent on finding new ways 

to improve business conditions for 

everyone, Interswitch is a company 

that has embraced change, and their 

leadership role in the industry is a 

testament to this. 

later. Transactions are made so easy on 

CowriePay that customers can send and 

receive money via emails and phone 

numbers. Such ease is the hallmark of 

financial inclusion. 

Founded in 2015 by Ezra Olubi and 

Shola Akinlade, Paystack routes 

payments through optimal routes 

recording a success rate previously 

thought impossible. In just four years, 

they already have over 25,000 business 

in their books. Also, thanks to their 

automated and manual fraud systems, 

their customers are protected from 

fraudulent transactions and associated 

chargeback claims. 

According to CBN, Financial 

Inclusion is a state where 

financial services are delivered 

by a range of providers, mostly 

the private sector, to reach everyone 

who could use them. Specifically, 

it means an economic system that 

serves as many people as possible in a 

country. Financial inclusion, therefore, 

is a guaranteed way to generate a 

wealth of national proportions. Due to 

its perceived importance as a driver of 

economic growth, the topic has gained 

relevance in recent time. 

Here is our pick for the top ten firms 

that drive financial inclusion in Nigeria. 

Users of this platform get to enjoy 

such unique services as cardless ATM 

withdrawals, receiving payments online 

from international cards thanks to a 

personalized URL and very excellent 

customer service. One of the significant 

gains of Wallet is how well it helps 

you keep track of how you spend 

your money. Its robust infrastructure 

is easy to use for everyone including 

businesses, regardless of their size and 

structure, therefore enabling financial 

inclusion. 

Launched in 2005, Remita processes 

over N500 billion worth of transactions 

Launched in 2012, Amplify is a 

complete customer engagement 

solution for subscription businesses 

that engage in recurring transactions. 

They pride themselves on having such 

an easy and secure interface that makes 

transaction swift and fun, and thanks 

to their dynamic referral programs they 

continue to grow or need I say amplify. 

When it comes to financial inclusion, 

Paylater came to change the game 

forever. Their mission is to empower 

all people with the financial access 

they need to pursue a life of dignity 

and prosperity. Thanks to how well 

they have handled their online money 

lending platform by providing short 

term loans to help in time of urgencies, 

they have experienced great corporate 

growth in six years of operation. 

With a solid partnership with licensed 

financial service providers, fund 

providers, and merchants, CowriePay 

allows customers to buy now and pay 

With a platform that has created a 

seamless network for borrowers and 

lenders, 247Cash can boast of one of 

the most formidable credit facilities 

in Africa. The unique proposition they 

have is the fact that quick payback is 

guaranteed to every lender, such great 

incentive indeed. 

Founded in 2003 and with operation 

spread across Africa and the United 

Kingdom, this CBN licensed FinTech 

provides services that can be accessed 

by all segments of the market’s 

payment infrastructure. They keep 

winning hearts with their mission of 

providing secure, convenient and costeffective 

means to make and receive 

payments 

Just over a year after its launch, over 

1.2 billion dollars across 10 million 

transactions had gone through the 

Flutterwave space. They are no small 

players, with their base in San Francisco 

and offices in Lagos and all over Africa, 

it is clear that Flutterwave has come 

to stay. They have become a trusted 

payments partner of many Nigerian 

businesses. 

32 

@thesparkng



Branding for Mergers 

and Acquisitions 

Learn the branding strategies in the face of mergers and acquisitions 

By Ehime Eigbe-Akindele 

In 2008, when Washington Mutual Bank 

fondly known as Wamu was acquired by 

Chase bank, I remember being nervous 

about what the acquisition meant for me 

as a customer due to the fact that both banks 

had totally different cultures when doing 

business. 

I visited my branch and was assured my free 

current account and other benefits will remain 

the same since Chase would grandfather 

them into their structure. When the change 

finally came, this turned out not to be the 

case and I effectively closed my account as 

Chase lived up to my perception about their 

brand. 

Mergers and acquisitions are more common 

than people actually realize. They bring about 

fear, panic, and conflict for all stakeholders 

due to the uncertainty it brings. A recent 

Harvard business review reports on the 

failure of mergers and acquisitions put it at 

70% to 90%. 

This is a ridiculously high number and I 

believe this can be avoided if the right brand 

and communication strategy is put in place 

leading up to the merger, during the merger & 

post-merger. M&As certainly have negatives 

and positives impacts but the negatives can 

be minimized while the positives highlighted 

to ensure success. Given this failure rate 

of most mergers and acquisitions, a wellthought-out 

brand strategy provides clarity 

and signifies that the leadership team is 

confident and decisive. 

The core focus should be on customer 

retention, communicating a brand that 

appeals to stakeholders in both banks and 

ensures their buy-in. This is an opportunity 

for both banks to wipe the slate clean and 

bring to reality the ideal bank they want 

to create or to reinforce the narrative they 

already have in place. 

As CEO Herbert Wigwe has stated ‘it’s 

ongoing business combination agreement 

with Diamond Bank will lead to the creation 

of a financial powerhouse.’ Business strategy 

is only as strong as the businesses branding 

strategy. Rebranding right will play the 

ultimate role in building internal and external 

credibility by aligning the contrasting 

offerings of both banks into a single, 

compelling value proposition. 

A unified clear brand message map gives all 

stakeholders the tools to become effective 

brand champions. Access Bank has stated on 

their website that the new bank will retain 

the name Access Bank. For Access Bank 

customers, it is business as usual but it is 

more imperative not to alienate Diamond 

Bank customers and ensure their perception 

of the change is positive. Both banks seem 

to already have similar value propositions 

which weren’t the case with WAMU & Chase, 

so there is a greater chance with the right 

strategy of a 90% customer retention. 

In the face of an M&A, it is important that 

whatever is being communicated to the 

customer is completely certain. Do what you 

say you will! If you say you plan to keep their 

bank accounts as they are with no changes 

then you absolutely have to do. It is best to 

start off a new relationship with the newly 

acquired customers on the right foot. 

Build a foundation of trust as this will ease 

uncertainty and dispel mistrust. If you are 

unsure at the time of what steps would be 

taken on certain issues as mergers sometimes 

can be a long process, it is still best to 

communicate the uncertainty honestly than 

mislead a stakeholder. Consistency is key to 

building brand credibility. 

Customer Retention should be the biggest 

aim of the brand and communication 

strategy since the goal of the merger is to 

build a financial powerhouse. This should be 

handled the same way you handle a blended 

family. Nobody likes change even though it 

is the only thing constant in life. Customers 

want to be assured that the complexity of the 

M&A would not affect the service they have 

grown accustomed to. 

They need reassurance that this change will 

be more beneficial for them. I spoke to a 

Diamond Bank customer who told me ‘he 

moved all funds he had in his accounts’ the 

day after the merger was announced because 

according to him, historically such moves 

have led to customer funds being held 

indefinitely or completely lost. 

There needs to be a strategy for customers 

who have this mindset, to reassure them 

that things won’t be done as they have in 

@thesparkng 

33



Nigeria’s past history. This merger presents a 

great opportunity for both banks to change the 

narrative and prove that banks in Nigeria can 

operate at international standards. 

They need to upsell the benefits of the merger 

to the acquired customers. The people behind 

the brand need to ensure their strategy involves 

combining the right elements of both brands or 

a dual brand strategy approach where Diamond 

Bank customers receive the same unique value 

they have always received. I find this could work 

short term to avoid drastic changes that could 

upset customers but a more blended approach 

should be applied the long term to ensure 

fairness and a unified bank. 

Sainsburys and ASDA announced a merger 

in 2018, these brands have different brand 

propositions as ASDA is known for its low-price 

items, while Sainsbury’s is known for high priced 

items as in the case of WAMU & Chase. What 

Sainsbury’s seem to be getting right in their 

communication is that they have observed the 

need to lower prices and communicate a more 

accessible brand image so as not to alienate 

ASDA customers. 

If the goal of a merger is growth then strategy 

to win over a diverse range of customers is 

needed. In the case of Access Bank, their value 

proposition in comparison to that of Diamond 

Bank isn’t that different so it should be fairly easy 

to win over the newly acquired customers with 

the right strategy. 

There should also be transparency throughout 

the process of the merger and ensuring due 

process is followed to avoid any appearance of 

impropriety as this can also affect perception 

and stock prices especially if it results in a lawsuit 

as we have seen in the past. 

In 2012, Intercontinental Bank staff were reported 

to have resigned en-mass after the acquisition 

of the bank by Access Bank. If these reports are 

true, it is obvious to see that understanding and 

integrating both corporate cultures is extremely 

important. Here is a chance for Access Bank to 

do things differently. 

The opportunity here is that both Bank now has 

an increase in the pool of talent at its disposal. A 

genuine process for retention in a position where 

the bank has too many team members should 

be employed. The process needs to be fair and 

transparent for the good of the company as they 

end up with the most qualified staff for the job 

along with timely communication throughout 

the M&A process to ensure employees are 

adapting to the change. 

A unified strong message is needed in this time 

of uncertainty which both banks are seen at the 

moment to be doing well. A visit to both websites 

had very similar messages which communicate a 

solid communication strategy but this needs to 

continue as the merger unravels. To tip the scale 

of a merger or acquisition and actualize the full 

potential, the communication teams involved 

must be deliberate with prioritizing the right 

brand strategy. 

34 

@thesparkng



Scramble for the 

Financially-Excluded 

Regulatory change of tack in Nigeria sees Telcos, 

Fintechs scramble for the financially excluded 

By Ololade Akinmurele 

No less than thirty (30) business 

names are currently undergoing 

registration as payment service 

banks at the Corporate Affairs 

Commission (CAC), in a move that could 

prove a game changer for tens of millions of 

financially excluded Nigerians. 

For non-banks, registering a subsidiary unit 

is the first step in applying for a payment 

service bank license under a new set of 

mobile money guidelines launched by the 

Central Bank of Nigeria in October 2018, as 

it attempts to replicate a system that has 

succeeded in bringing large swaths of people 

from India to Ghana into the formal financial 

fold. 

According to data obtained from the Abujabased 

CAC, the thirty business names 

undergoing registration include financial 

technology companies, Verve, Quick teller, 

Interswitch, Paga and Paystack. Mitchell 

Elegbe, the General Managing Director of 

Verve, did not immediately respond to a text 

message seeking confirmation. 

The names of Telecommunication companies, 

MTN, and Bharti Airtel also feature, as well 

as Glomoney and Glocash Payment Service 

Banks- possible subsidiaries of Globacom. 

Orange S.A. also wants a piece of the pie, CAC 

data showed. That confirms an earlier article 

by Business Day which reported interest from 

the French telecom company in Nigeria’s 

mobile money market. 

“We have a game changer in our hands,” said 

Obadiah Malaifia, a former deputy central 

bank governor. 

“More than 20 percent of financially 

excluded Nigerians could have access to 

formal financial products and services for 

the first time in their lives,” said Malaifia, 

a development economist who has done 

extensive work on how to increase financial 

inclusion in Nigeria, especially drawing on 

lessons from West African neighbour, Ghana. 

Other business names undergoing CAC 

registration include MPS, Crypto, Roger, 

Zuma and Probity Payment Service Banks 

(PSB). Others are IFIS, Touba, Hope, Goals, 

MOMO, A-Tel, Wazobia, Aventel, Switch, and 

Vela. 

Opening up the mobile money space to nonfinancial 

companies breaks the monopoly 

of commercial banks after years of haggling 

between stakeholders. 

The CBN hopes the regulatory tweak will 

make basic financial services accessible to 

some 50 million people in the country who 

have no bank account. 

The regulatory guidelines, however, restrict 

the non-financial companies to accepting 

deposits, as they are barred from giving loans 

and offering credit facilities. 

PSBs can be thought of as stripped-down 

versions of traditional deposit money banks, 

with limited functionality and a focus on 

onboarding more of the excluded and 

marginalized population. 

Unlike deposit money banks (DMBs) and 

microfinance banks (MFBs), from day one, 

PSBs have a heavy reliance on technology 

via digital financial services, complemented 

with a strong agent banking model, which is 

meant to reduce overhead costs. 

The PSB model borrows a play from the 

Reserve Bank of India’s playbook. The concept 

of Payment Banks was first introduced in India 

in 2013 when a committee on Comprehensive 

Financial Services for Small Businesses and 

Low-Income Households was formed, and 

the committee recommended a new bank 

category called Payment Banks. 

In 2014, invitations were sent out for 

interested parties to apply. 

The following year, the RBI granted licenses 

to 11 applicants, despite receiving a total of 

41 applications. 

That could hint that not all the companies 

that will apply for a PSB license in Nigeria will 

get one. 

Of the 11 licensed PSBs in India, three have 

“Post-implementation of the 

model, the number of account 

holders in the country rose 

from 53 percent in 2014 to 80 

percent in 2017, according to 

World Bank data.” 

given up their licenses, while six PSBs have 

commenced operations, albeit only four are 

prominent. 

The reason some of the PSBs walked away 

was primarily because of the challenges 

with their earnings potential and a lack of 

infrastructure, particularly power, which 

increased the cost of PSBs and reduced their 

reach. 

Nigeria would also need to pay attention to 

addressing an infrastructure deficit if the PSBs 

must succeed and more people are financially 

included. 

Post-implementation of the model, the 

number of account holders in the country 

rose from 53 percent in 2014 to 80 percent in 

2017, according to World Bank data. 

Hard-pressed to meet an 80 percent financial 

inclusion target set out in 2012, the CBN will 

be hoping the model replicates the success 

achieved in India. 

Subsidiaries of mobile network operators, 

mobile money operators, retail chains 

(supermarkets) and banking agents are 

all welcome to apply for the PSB license, 

provided they can meet certain requirements, 

including a 5 billion naira capital base, and 

a combined 2.5 million naira application and 

license fee which is non-refundable. 

Temitope Shogaolu, head of the financial 

inclusion secretariat at the CBN says Fast 

Moving Consumer Goods companies and 

other interested parties can apply for a 

payment service bank license if they met the 

required criteria. 

“As regulators, we are after providing a level 

playing field for interested parties to move 

the needle on financial inclusion,” Akin- 

Fadeyi said at the Lagos Business School and 

Business Day financial inclusion conference, 

Thursday. 

“Fast consumer goods companies and other 

interested parties can apply for a license,” 

Akin-Fadeyi said. 

“We want everyone that is interested and 

able to drive financial inclusion ahead of 

2020 when we expect to achieve the national 

target of 20 percent exclusion,” Fadeyi added. 

@thesparkng 

35



The Mobile Money Landscape 

There should be some consideration for doing a little bit more detailed market education that 

involves a deliberate attempt to change consumer behavior within the sphere of financial inclusion 

By Edmund Olotu 

On financial Inclusion 

Financial inclusion is a deliberate strategy 

or policy that involves connecting otherwise 

unconnected, undocumented or the less 

privileged bottom of the pyramid people 

to the financial infrastructure of society 

i.e. banking systems, mobile money etc. 

anything that facilitates electronic recording 

of financial transactions. So, in the Nigerian 

context, it would mean bringing the informal 

sector into the formal sector. This way, 

people in the rural areas, the underbanked, 

the people considered urban poor are 

brought into the financial infrastructure by 

giving them an element that can be tracked 

and traced, access to financial services that 

go beyond deposits and transfers to include 

loans, saving products, potential insurance, 

micro pensions etc. 

On Nigerians embracing the concept 

I believe Nigerians are ready to embrace 

the concept but I think the legislation being 

laid down to allow this to happen properly 

is not robust enough. There should be some 

consideration for doing a little bit more 

detailed market education that involves a 

deliberate attempt to change consumer 

behavior within the sphere of financial 

inclusion. Because, if we do not change the 

behavior of the people we seek to financially 

include, we will continue treating their 

finances or how they interact with money 

in exactly the same way. So, no matter the 

number of technological solutions put in 

place, if we are still communicating in the 

exact same way, then there is less adoption of 

these things. Whilst Nigerians are generally 

open to it because these initiatives are 

successful when they are carried out in silos, 

there is a high level of adoption by that 

specific target market, but when we consider 

a need for widespread adoption, there is a 

need for a lot of market education. 

“Financial inclusion 

brings in more people 

who would have 

otherwise not been 

privy to your product 

and gives you a larger 

market size than you 

would have ordinarily 

been able to distribute 

your product to.” 

On Entrepreneurs taking advantage of 

financial inclusion 

Reaching the last-mile target market 

specifically - delivering products to them 

- means them being able to pay for your 

services. It’s one thing to get your products 

in front of these customers but if they do not 

have the capacity to pay for your products in 

a manner that is affordable, accessible and 

effective to both you and the customer (you 

making a profit and them receiving value); 

those customers become exempt from your 

customer base. 

So financial inclusion brings in more people 

who would have otherwise not been privy to 

your product and gives you a larger market 

size than you would have ordinarily been able 

to distribute your product to. 

On Challenges entrepreneurs face 

If we are speaking specifically about Nigerian 

fintech entrepreneurs who build financial 

technology products, the predominant 

challenge they face is regulation from the 

Central Bank. I think the regulation from the 

CB currently stifles Fintech companies. At this 

point in time, Nigeria should be an exporter 

of Fintech to other parts of Africa and indeed 

other emerging markets, but if we can’t 

develop or use our own country as a test 

bed for some of our solutions as a result of 

restrictive regulations, then the chances that 

we will be able to export them is extremely 

low. 

So whilst there is integration into the 

existing Nigerian banking process, we 

must understand that the reason the term 

‘unbanked’ exists is that the present banking 

system isn’t catering to this target market. 

Thus if all the platforms are still being 

directed at the cause of the initial problems, 

then we cannot expect a revolutionary 

change in financial inclusion in Nigeria. It is 

important that Fintech companies are given 

a bit more flexibility to be innovative, grow 

their business and improve the economy. 

On the Nigerian government 

I think the government has a role to play in 

ensuring that more youth get the opportunity 

to acquire new skills, however, I believe the 

government is set in its way in how it believes 

education and skills acquisition should take 

place. This obviously takes places through 

existing universities and technical schools. 

However, if these tertiary institutions are 

benchmarked against their counterparts 

abroad e.g. the MIT Media Lab and initiatives 

from the Stanford Program, we will realize 

that our institutions are years behind. 

A role, I think, the government can play is to 

partner with innovative companies that want 

to take the front seat in developing up-todate 

skills acquisition programs just like NESA 

and others willing to set the tone that states 

that formal education is not a compulsory 

prerequisite to get a job in the labor market. 

When skills acquisition is mentioned, we are 

talking about a person’s ability to apply skills 

learned into carrying out a job and solving 

real problems. There is still a problem when 

individuals who acquire these skills attend 

interviews and employers can’t get past 

the fact that these individuals do not have 

degrees from formal tertiary institutions. 

So, I strongly believe that the government 

can help in setting the signal by supporting 

such skills acquisition programs stating that 

graduates from these programs should be 

treated with the same level of reverence 

as the graduates from formal universities. 

The government can then approve and 

recommend the learning programs of such 

skills acquisition initiatives as being thorough 

enough to impart the required knowledge 

and skills into its students to be able to stand 

their own in the labor market. 

On what the future holds 

It is difficult to say what the future holds, 

but what I do know is that I would rather not 

bet against the future by saying it is bleak. 

I think with the right tenacity and the right 

communication and dialogue, things will 

begin to align themselves. Regulations and 

government signaling will align themselves. 

Corporate sectors will also align themselves 

in terms of consuming technology products 

and fintech platforms from Nigerian 

entrepreneurs. This will in turn help with 

setting the signal that individuals who 

are a product of such platforms may not 

necessarily have to attend formal institutions 

but have the right level of training to be 

accepted into the labor market. Also, it can 

be recommended that graduates of formal 

tertiary institutions should be allowed to 

polish their skills by passing through some of 

these programs. 

All these with the right amount of dialogue 

and action will ensure a bright future. We 

need to be a little more deliberate, all 

stakeholders - government, educators, 

entrepreneurs - need to be more deliberate 

in ensuring the future is indeed bright for the 

generations coming after us. 

36 

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