You spent at least 4 years in the university or polytechnic, did they ever teach you anything about your personal economy? Yes, did they prepare you for yourself? Most times, schools are designed to prepare us for WORK in companies, organizations or governments.

Simply, one of the greatest surprises when I started work was this: the university system prepared me on how to manage resources for companies, but did a very poor job on how I could manage my own personal resources.

In FUT Owerri, we studied great topics in Engineering Management like Engineer Turns Manager, Managerial Accounting, etc. In all those domains, everything was on how to optimize resources for the employer (yes, the company). But none for the village boy’s Personal Economy. That is why at Tekedia Institute, we developed a module on Personal Economy.

And with hardwork, grace and luck, that Personal Economy can work even when the National Economy or Global Economy is not firing. It is about strategy and planning. In the Igbo, they give titles like “Ome na unwu” [one who does great things even during famine and scarcity] which means that you can find abundance even when a national or global economy is challenged.

Today, I will be teaching on “Building Investment Portfolios And Personal Economy“. To register for the next edition of our program with early discounts, go here . More SMEs attend our program than any university in Africa. Come and learn how to thrive at Tekedia Mini-MBA.

FBN Holdings Plc is set to embark on a significant rebranding initiative, proposing a change of its legal and brand name to “First Holdco Plc.” The proposal will be presented to shareholders for approval during the 12th Annual General Meeting (AGM), slated for November 14, 2024.

This rebranding effort is designed to modernize the company’s identity and reflect its evolution into a diversified financial services group. It will involve amending the company’s Memorandum and Articles of Association to capture the new legal name and structure, subject to regulatory approvals from relevant authorities, including the Central Bank of Nigeria.

The decision to rebrand as First Holdco Plc marks a pivotal moment for FBN Holdings, which has been a cornerstone of Nigeria’s financial sector for over 130 years. Initially known for its banking services under First Bank of Nigeria, the company has expanded its operations into various financial services, including insurance, asset management, and capital markets. The new name aims to better encapsulate the group’s diversified portfolio and forward-looking approach while still honoring its rich legacy in Nigeria’s financial history.

By extending the rebranding to its subsidiaries, the company seeks to present a unified brand that strengthens its market presence and aligns with its strategic vision for growth. This approach aims to streamline the group’s corporate structure, enhancing operational efficiency and positioning the institution for future expansion, both within Nigeria and internationally.

The move also underlines a broader trend in the financial services industry, where holding companies are increasingly rebranding to better communicate their roles as diversified groups. As a financial conglomerate, FBN Holdings aims to capture opportunities in various market segments and respond more effectively to the evolving needs of customers and stakeholders.

The name change aligns with the company’s ongoing efforts to diversify revenue streams, reduce reliance on traditional banking income, and capitalize on growth opportunities in sectors such as digital payments, investment banking, and financial technology (fintech). The new identity will help the group reposition itself to attract partnerships, investors, and clients looking for a comprehensive range of financial services under one umbrella.

Moreover, the timing of this rebranding coincides with the launch of the company’s new five-year plan. This plan will guide FBN Holdings’ growth initiatives from 2025 through 2030, focusing on digital innovation, customer-centric services, and sustainable growth practices.

Wale Oyedeji Takes Over as Group Managing Director

In a parallel move, FBN Holdings has announced the appointment of Adebowale (Wale) Oyedeji as the new Group Managing Director (GMD), effective November 13, 2024. His appointment is subject to approval by the Central Bank of Nigeria and ratification by shareholders at the AGM. Oyedeji will succeed Nnamdi Okonkwo, who will be stepping down after leading the institution through a critical period of stabilization and growth.

Oyedeji brings a wealth of experience to the role, with over 30 years in the banking sector. His previous positions include MD/CEO of Nova Commercial Bank, where he was instrumental in transforming the bank’s operations and expanding its services into retail banking.

His career also spans significant leadership roles at Guaranty Trust Bank UK, where he was Managing Director between 2008 and 2011, and Guaranty Trust Bank Plc, where he served as an Executive Director in the Corporate Banking Group. Additionally, Oyedeji has held a Non-Executive Director position at Stanbic IBTC Bank, further deepening his expertise in corporate banking and financial governance.

Oyedeji’s academic qualifications include a Bachelor of Science degree in Agricultural Economics from the University of Ibadan and a Master of Science in Financial Economics from the University of London. He is also a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and an alumnus of the prestigious Advanced Management Program at Harvard Business School.

Upon assuming the role of GMD, Oyedeji will be tasked with leading the implementation of FBN Holdings’ new strategic plan, driving growth across the group, and overseeing operations at the holding company and its subsidiaries. His leadership is expected to build on the momentum established under Nnamdi Okonkwo, focusing on navigating regulatory challenges, fostering innovation, and sustaining the group’s market leadership.

Oyedeji’s appointment comes amid a year of substantial leadership changes at FBN Holdings, signifying a period of restructuring and governance reform aimed at positioning the institution for long-term success.

Earlier in the year, billionaire businessman Femi Otedola took over as the new Group Chairman, following his rise to become the largest individual shareholder in 2021. Otedola’s appointment marked the beginning of a new era for FBN Holdings, characterized by a series of moves aimed at stabilizing the institution after years of leadership turbulence and restoring investor confidence.

Under Otedola’s chairmanship, FBN Holdings expanded its board by appointing five elite directors in March 2024, strengthening corporate governance and reinforcing its strategic vision. These appointments were part of a broader effort to bolster the institution’s leadership and drive its new business strategy, addressing legacy challenges that had previously hindered its growth.

The leadership changes have extended to FBN Holdings’ flagship subsidiary, First Bank, where Olusegun Alebiosu was appointed as the Managing Director/CEO earlier in 2024. The reshaped leadership team, now including Oyedeji, is expected to chart a path that addresses operational challenges while capitalizing on new growth opportunities.

As Nnamdi Okonkwo prepares to retire, his tenure is credited with guiding FBN Holdings through a period marked by corporate restructuring and governance reforms. He played a significant role in revitalizing the group’s financial performance, enhancing profitability, and restoring market confidence after years of internal challenges.

Okonkwo’s leadership saw the institution improve its risk management framework, strengthen compliance practices, and realign its strategic priorities. His efforts are believed to have laid a solid foundation for Oyedeji to build upon.

The recent increase in Nigeria’s minimum wage has sparked discussions on its potential impact on alleviating the country’s current economic hardship, with the World Bank cautioning that the wage hike will only benefit a limited segment of the population.

During the launch of the Nigeria Development Update (NDU) report in Abuja, Alex Sienaert, the World Bank’s lead economist for Nigeria, highlighted that while the increase is significant, it will primarily benefit formal wage earners, impacting only about 4.1% of working-age Nigerians.

The new N70,000 monthly minimum wage adjustment, which aims to improve the livelihoods of Nigeria’s workforce, faces significant limitations in its reach and impact – and has been deemed insufficient.

According to Sienaert, the direct benefits will be minimal as the policy mainly targets formal sector workers who are already in the minority. This concern is compounded by Nigeria’s labor market structure, where the majority of workers are engaged in informal or self-employed jobs that are not directly affected by wage legislation.

Elaborating on these limitations, the World Bank’s report pointed out that policies like minimum wage hikes and public sector wage reforms tend to bypass the poorest workers. It states, “Policy initiatives that cover only highly-formalized wage jobs – including policies focused on public sector workers and minimum wage legislation – may not reach many of Nigeria’s poorest workers directly.”

It added that given that formal wage jobs are scarce, especially among poorer households, the direct effects of such policies on poverty reduction are restricted.

Nigeria’s labor market is characterized by a high rate of informal employment, which poses a challenge to wage policy effectiveness. Recent data from the National Bureau of Statistics (NBS) revealed that 92.7% of Nigeria’s employed population is engaged in informal work, underscoring the economy’s heavy reliance on unstructured job roles.

Dr. Tope Fasua, Special Adviser to the President on Economic Affairs, corroborated these findings, noting that only about 7-8% of the working population is under wage employment controlled by the National Labour Congress (NLC).

The NDU report further stated that public sector wage jobs not only account for a small fraction of employment opportunities but are also predominantly occupied by relatively well-off Nigerians. These positions offer higher pay compared to private sector jobs, even when accounting for individual qualifications.

This disparity suggests that public sector jobs are difficult to access for the economically disadvantaged, creating barriers that perpetuate income inequality.

A critical issue highlighted in the report is the enforcement of minimum wage legislation. Even among wage earners in the private sector, compliance with the official minimum wage is inconsistent.

Approximately one-third of private sector employees reportedly earn less than the minimum wage, indicating that the policy’s effectiveness is hindered by imperfect enforcement mechanisms. This gap in enforcement limits the policy’s ability to uplift the poorest workers who may not hold formal wage jobs or benefit from minimum wage protections.

Furthermore, the World Bank cautioned that increasing wages, particularly in the public sector, could place additional strain on Nigeria’s already stretched public finances.

The country has faced fiscal challenges due to high debt servicing costs and dwindling revenue, making it crucial for policymakers to consider the financial sustainability of wage increases. Sienaert emphasized the need for broader employment policies to effectively reduce poverty, as simply increasing wages for a select group will not address the underlying structural issues in the labor market.

The Need for Productive Job Creation

The World Bank’s report calls for a shift in focus from merely expanding employment to creating more productive jobs that provide sustainable livelihoods. It points out that employment alone does not guarantee an escape from poverty, as many jobs, particularly in the informal sector, are not productive or remunerative enough to lift individuals above the poverty line.

The report states, “Many jobs are not productive and therefore remunerative enough to afford a life beyond poverty.”

According to recent labor market statistics, 84% of Nigeria’s working-class population was self-employed as of the first quarter of 2024, representing a decline from 87.3% in the third quarter of 2023. While this shift indicates a slight reduction in self-employment, it also denotes that the vast majority of workers remain outside formal wage employment. The implications of this trend are significant, as the predominance of self-employment often underlines the scarcity of structured job opportunities and can be associated with lower income levels and job insecurity.

This situation underscores the World Bank’s concern that policies focused on formal wage earners are unlikely to have a widespread impact on poverty reduction. With a significant portion of the population working in the informal sector, many Nigerians remain vulnerable to economic shocks and unable to access the benefits associated with formal employment, such as social security, health insurance, and other labor protections.

An African Development Bank (AfDB) report echoes the World Bank’s findings, noting that about 34.3% of Nigerian workers aged 15 and older live below the poverty line despite being employed. This “working poor” phenomenon is largely attributed to low-skilled and low-wage jobs that fail to provide adequate income for a decent standard of living.

The Nigeria Country Diagnostic Note (CDN) 2023 further highlights that many workers are trapped in poverty due to the nature of their employment, which often lacks productivity and offers limited opportunities for upward mobility.

The data paints a stark picture of the labor market’s structural deficiencies, indicating that even significant wage hikes will have limited impact unless accompanied by comprehensive labor market reforms. Experts have advised that the reforms should aim to improve skill acquisition, facilitate access to higher-paying jobs, and foster sectors with the potential to absorb large numbers of workers into productive roles.