Firstbank restrategises, reinforces business activities ahead of pandemic

As part of efforts at restrategising ahead of the novel coronavirus pandemic, as well as, to reinforce its business activities in line with the realities of the time, First Bank of Nigeria Limited, Nigeria’s premier and leading financial inclusion services provider, held virtual corporate customers’ webinar.

The webinar, which held on May 21, 2020 via Zoom Meetings on the theme; ‘Navigating the Financial Impact of COVID 19 – Business Leaders’ Role in Finding a New Normal’, witnessed Adesola Adeduntan,ceo,firstbank,leading other discussants to deliberate on the impact of the COVID-19 crisis on the Nigeria financial sector.

Explaining the rationale for the event, the bank noted that the virtual event was organised to deliberate ways through which corporate organisations can stay ahead of the coronavirus pandemic, while reinforcing their business activities with a view to sustaining their continued contribution to the national economy.

In his remarks at the event, Adeduntan, the bank’s chief executive officer, noted that the bank is looking beyond the challenges of Covid- 19 to taking full advantage of the opportunities from the disruptions caused by the pandemic on the economy.

While the pandemic has put significant pressure on revenue and profits of commercial banks, amid more stringent interest rates, higher foreign exchange funding cost and concerns on level of foreign reserves, Adeduntan assured that the bank would continue to leverage on the changes to reduce cost of doing business.

One of the efforts at reducing cost, according to him, is strengthening the bank’s digital channels to grow from 80 percent transactions on alternative channels to 90 percent soon.

“Most of the global economies have experienced several weeks of lockdowns, the unprecedented impact of COVID-19 pandemic is being felt globally in various ways. The financial sector is one of the sectors that was hard hit since the unsettlingly rapid global spread of COVID-19 sent financial markets to tail spin”, the CEO said.

Also speaking at the webinar on the topic, ‘Tax Advisory: Market Disruptions,’ Wole Obayomi, partner, KPMG, advised corporates to ensure payment of tax as and when due, to reduce tax bills in form of penalties. He said that corporates could engage tax authorities for payment extension if they foresee late payment due to the global pandemic.

He also called on the Federal Government to suspend the new Value Added Tax increase to 7.5 percent till 2021 due to COVID-19 pandemic.

On his part, Ini Ebong, group executive, Treasury & Financial Institutions, Firstbank, said that at the wake of the pandemic, the foreign exchange market was under immense pressure due to exit of portfolio investors, hence the demand for dollars was heightened due to collapse of oil price and coronavirus pandemic.

While the steps taken so far by the the Federal Government and the Central Bank of Nigeria (CBN) to support the economy, according to him, would bring back liquidity, he assured that if there is a conducive environment, portfolio managers would still come back to our market.