The Board of Stanbic IBTC has appointed Dr. Kunle Adedeji as the acting Chief Executive Officer of the financial institution ahead of the end of Dr. Demola Sogunle’s tenure on October 31, 2024.

Adedeji, who brings with him over 25 years in the banking sector, was confirmed on October 2, 2024, in a letter addressed to the Nigerian Exchange (NGX) and signed by the company secretary, Chidi Okezie.

Okezie revealed that Dr. Kunle Adedeji‘s appointment is set to take effect on November 1, 2024.

The statement detailed that Adedeji, who was in 2019 appointed as an Executive Director, is also the current Chief Finance and Value Management Officer of the Company.

Okezie noted that he will continue serving in the position while also serving as Acting Chief Executive of the Company.

The statement reads, “Adedeji, brings a wealth of experience and a strong track record of leadership within our organization.

Dr Adedeji, who was appointed as an Executive Director in 2019 is a seasoned financial expert with over 25 years in the banking sector.

“He holds an MBA in Finance from the University of Lagos and a DBA from the SBS Swiss Business School, Switzerland.

He is also the current Chief Finance and Value Management Officer of the Company and will continue in this capacity throughout the duration of his tenure as Acting Chief Executive of the Company.

The Board is confident that Mr. Adedeji’s leadership would be instrumental in driving the growth strategy of Stanbic IBTC Group.”

Investors King learned that Dr. Adedeji is set to succeed Dr. Demola Sogunle, whose tenure as the firm’s Chief Executive will come to an end on October 31, 2024.

Stanbic IBTC expressed gratitude to the outgoing CEO for his significant contributions during his 35 years of service.

“The Board of Directors expresses its heartfelt gratitude for his unwavering commitment, visionary leadership, and pivotal role in steering Stanbic IBTC through various challenges and milestones,” the statement added.

Businesses in Nigeria, Africa’s largest economy, have begun cutting down on their dollar exposure to better manage risk and profitability following the persistent depreciation of the Nigerian Naira since President Bola Ahmed Tinubu took office.

The Nigerian Naira lost over 8% on Wednesday to close at N1,699 against the US dollar, according to FMDQ data obtained by Investors King.

Analysts are now projecting a further decline to N1,700-N1,800 per dollar for the local currency by the end of the fourth quarter.

This negative outlook is prompting businesses with dollar debt to reduce their exposure to better manage financial obligations, especially amid rising borrowing costs in naira.

“One is still seeing volatility in the naira, so there’s still limited confidence in the currency,” said Muyiwa Oni, an analyst at Stanbic IBTC Bank Plc. “The biggest point is that as an institution, you can’t control naira movement, but you can mitigate your risks.”

Last month, Nigerian Breweries announced plans to pay off a $197 million foreign debt to rein in interest expenses and other costs.

Similarly, Ecobank Nigeria stated it was working on converting a $200 million dollar loan to naira to reduce its risk exposure after reporting a 77% decline in pre-tax profit due to naira devaluation.

In July, MTN Nigeria also revealed it had reduced its letters of credit obligations to $100 million from $417 million in December.

The ongoing naira woes have already prompted multinationals, including Unilever Plc, Procter & Gamble Co., GSK Plc, Sanofi SA, and Diageo Plc, to either reduce their Nigerian exposure or exit the market completely by selling to local firms.

As part of its mandate of supporting medium, small, and micro-enterprises to grow, the Bank of Industry said it disbursed loans totalling N77.65bn to about 1,000 MSMEs across the country within the first nine months of 2024.

Addressing dignitaries who attended the 2024 BOI Annual Public Lecture Series held on Wednesday in Abuja, BOI Managing Director and Chief Executive Officer, Dr Olasupo Olusi, explained that the financial assistance would enable the beneficiaries to enhance their operations, improve their productivity and contribute to the overall economic growth of the country.

Welcoming participants at the event themed, ‘Creating Impact: The Role of MSME Support and Financing in alleviating poverty and food insecurity in Nigeria’, Olusi stated that the loan disbursement is part of the government’s strategy to address significant challenges such as limited access to finance, difficult operating environment, and infrastructure deficiencies.

He also emphasised that the disbursement of the loans to the business owners is crucial for alleviating poverty and ensuring food security in Nigeria.

Describing MSMEs as the bedrock of any thriving economy, the BOI boss disclosed that MSMEs make up approximately 97 percent of all businesses contributing to over 80 percent of employment and about 50 percent of GDP, adding that they are the driving force of food production and the overall economic development of the country.

He identified some of the challenges facing small business owners such as limited access to finance, challenging operating environments, and infrastructure deficiencies, emphasising that addressing these issues is essential to alleviating poverty and ensuring food security.

Olusi stressed that through sufficient financial support and an enabling environment, MSMEs are better equipped to improve the socio-economic conditions of the poor by creating employment opportunities, promoting the utilization of local raw materials, and driving economic growth.

He said some of the beneficiaries of the loan facility “range from the local palm kernel oil processor in the east to the woman with a printing press in the north and a local furniture maker in the south, amongst others.”

According to him, the bank will continue to create an environment that promotes sustainable growth by providing access to capacity-building programs, encouraging technological innovation, and facilitating connections between businesses and both domestic and international markets.

To deepen the bank’s impact, he said it has prioritized six key thematic areas including MSMEs, Digital Economy, Youth & Skills, Climate and Sustainability, Infrastructure, and Gender, adding that the approach ensures that every loan disbursed helps to create jobs, achieves a greener economy, and boosts overall economic growth and development.

The Minister of Industry, Trade and Investment, Doris Anite, while making her remarks said that the government is focused on incorporating MSMEs into its initiatives aimed at reducing food insecurity and enhancing the production of essential goods and services, including food.

For the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, the government is working to increase the equity base of the bank.

Represented by the Managing Director of the Ministry of Finance Incorporated, Armstrong Takang, Edun stated that this increase in equity will enable the bank to better mobilize resources and focus more on supporting MSMEs.