Business
Union Bank To Reduce Operating Cost By N1bn
The management of Union Bank Plc is planning to reduce operating costs by N1 billion over to next one year, Mrs Funke Osibodu, the managing director of the bank said.
Osibodu noted that the cost management strategy embarked upon by the new management of the bank recently is expected to culminate in the saving of N300 million on purchase of diesel for the head office of the bank over the next one year. Already, about N30 million has been saved on diesel for the head office alone in two months and by the time the cost management strategy is extended to other branches of the bank, over N300 million would be saved over the next one year, Mrs Osibodu and two of her executive directors made these known during an interactive session with the media.
Mr Adebisi Shonubi, executive director operations, technology and services, said rather than toe the line of the old order by buying diesel from distributors, Union Bank has since the new management came on board, been purchasing diesel directly from the importers, thereby reducing costs.
Besides, he noted that about N145 million was also saved by the bank for purchase of new computers. Instead of buying new ones as had always been the case, Shonubi, said the bank had to approach the manufacturers and asked them to refurbish existing ones at N5 million and still achieve same results. “On the average, we use about two tankers of diesel in this building in a week. We were buying diesel from distributors. Meanwhile, all the people who import diesel into this country have account with us. It meant we were paying more for the diesel than we could have gotten taking to our existing customers who are directly importers.
“We would have turned the business over in our customer’s account to make them happier with us but we were not doing that. Immediately we started doing that since August, we have saved over N20 million just on item and that is on this building.
We expect that by the time we roll it out to other branches, and the other cost cutting things that we want to do on the energy alone, we should be looking at about N200 million,” he said. Shonubi said the institution had a mandate by its Group Managing Director to cut operating expenses by about 30 per cent. Executive Director, commercial and Retail Banking/Consumer Banking, Mr Adekunle Adeosun, said a e-mial culture has been instituted to improve on turn around time.
Previously, a customer’s request could take two to three weeks to complete, he said. With the e-mail system however, he said that could be achieved within 24 hours. “What we have done is improve turn around time. Our system is very old-fashioned. A request for customer stakes two to three weeks to complete the process. We are instituting an e-mail culture. Every staff has an e-mail address, so why we couldn’t use it is just an attitude and leadership thing. We have reinstituted it and the staff are embracing and using it. We are not only cutting costs in terms of cartridge, we are also helping the environment by cutting the use of paper, he said.
He, however, admitted the fact that only 45 to 50 per cent of its Automated Teller Machines (ATMs) were working properly. He said there is an ongoing process to revamp the machines and enhance their uptime, in view of their relevance in modern banking business. He said there are plans to outsource the distribution of its cheque books, stressing that the online order system has now been put in place.
Giving an update on the loan recovery efforts of the bank, Mrs Osibodu said the bank has recovered N31 billion and that the bank came from Transcorp, she explained, N600 million was in cash from government, while the remaining was in promissory notes, earning interest of 8.6 per cent per annum for the bank.
The GMD also revealed that the bank’s liquidity ratio had at different intervals reached a peak of 42 per cent. The stipulated liquidity ratio for all banks in the country is 25 per cent. On the alleged face-off between the bank and some labour unions over issues bothering on retirement and retrenchment benefits, the President, Union Bank Association of Senior Staff (UBASS), Mr Fred Ojeh, who was also in attendance, said the relationship between the union and new management has been cordial.
“The relationship here has been so cordial, I must confess, and if there are grey areas we sit down and talk it over. We support in totality all the actions of the new management to bring the bank back to Eldorado and we hope more will be done?”
“Nobody will picket Union Bank without our consent. The other faction of Association of Senior Staff of Bank, Insurance and Finance Institution (ASSBIFI) are not representing our interest,” he said. Head, Human Resources, Union Bank, Mr Mike Iyella, pointed out that the bank is committed to engage the union in positive dialogue over any issue that may arise.
Kolomoni Microfinance Bank has awarded grants to five female entrepreneurs to boost their businesses as part of its commitment to promoting women in business.
The initiative, organized to mark International Women’s Day, was themed “Accelerate Her Growth.”
According to the bank, the decision to support women was inspired by World Bank data, which shows that 41 percent of Nigeria’s micro-businesses are owned by women.
Delivering the keynote address, business strategist, Ebun Akinwale, emphasized that entrepreneurship requires resilience, creativity, and passion.
She illustrated this by recounting her own business challenges and highlighting the critical role passion plays in overcoming obstacles.
The event underscored Kolomoni’s mission to empower women and support small businesses in Nigeria.
Other speakers at the occasion were Odunayo Oyebolu, a seasoned entrepreneur; Victori Ajiboye, a marketing strategist with global experience; and Simi Ojumu, a finance expert.
The beneficiaries said the financial support was a validation of their hard work and a boost of confidence towards scaling through in their businesses.
The winners were selected after sharing their entrepreneurial journeys and presenting business proposals for financial assistance from the bank.
The 8th edition of the Nigeria Small and Medium Enterprises (SMEs) Summit and Awards (Nigeria SMEAwards) is set to take place in Lagos for the first time in its history, marking a significant milestone for this prestigious event.
Endorsed by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the annual awards celebrate the entrepreneurial spirit driving Nigeria’s economy.
The visionary convener of NigeriaSMEAwards 2025, Adedayo Olalekan, said, “Governors from Zamfara, Sokoto, Ebonyi, Borno, Enugu, Ekiti, Benue, and Kaduna States have all implemented transformative initiatives that have greatly benefitted local enterprises.
“Their contributions will serve as a beacon of inspiration for the nation.”
Speaking at a recent press conference in Lagos, Olalekan emphasised that the event would introduce a fresh and unique approach, moving away from tradition.
“Despite economic challenges, Nigerians continue to show an unwavering commitment to progress”, he said.
He noted that the awards will not only honor outstanding individuals, but also recognise the critical role state governments play in nurturing vibrant SMEs.
“State governments have been instrumental in fostering a supportive environment for SMEs, which in turn benefits both the awardees and the larger economy.
“With major banks like Providus, Access, and First Banks competing for top honors, the 8th NigeriaSMEAwards promises to be a night of celebration, recognising exceptional contributions to Nigeria’s SME landscape”, Olalekan added.
Amid global challenges such as inflation, geopolitical instability, and the ongoing conflict in Ukraine, Nigerians continue to show remarkable resilience.
Their efforts, according to reports, have contributed to job creation, economic growth, and overall prosperity, with SMEs at the forefront of this success.
This year’s awards will recognise governors who have made significant strides in advancing the SME sector within their states.
Small and Medium Enterprises (SMEs) consultants in Rivers State have called on entrepreneurs to be focused and avoid distractions.
The experts, who were speaking on the recent developments about the change of leadership in the state, said entrepreneurs need to put more efforts in their businesses in order to break even in the present situation in Rivers State.
Speaking in a chat with The Tide, an international SMEs consultant, Amb. Larry Goodwill Ajiola, said the political moves is capable of distracting SMEs who are not grounded in their businesses, adding that “the serious minded business men and women would utilise the opportunity to increase their revenues”.
Amb Ajiola, who is the President and Chief Executive Officer (CEO) of Rumuomasi Co-operative and Credit Society Limited, Port Harcourt, said, “Rugged entrepreneurs look out for business opportunities in situations around them, whether good or bad”.
He reiterated that the loan facility given to 3,000 SMEs in the state revived and expanded businesses, adding that the empowered businesses should continue to push, no matter the situation.
“credit is a powerful tool for achieving financial security.
“We can only keep imagin the economic value that the over 3,000 MSMEs would add to the positive economic dynamics of Rivers State and the Local Government Areas in terms of Gross Domestic Prooduct (GDP), increased tax returns, employment creation, income distribution, and production of goods and services”, he said.
Another SMEs Expert, a business consultant and SMEs trainer, Mr. Chisom Sam-Orji, in his advice, noted that every SME in the state should realize that change is the only constant thing.
He said SMEs should also know that “tough times never last, but tough people do”, adding the need for every entrepreneur to stay focused on creating value and remain resilient.
“This is not the time to be distracted by every noise around your space, but to maximize every time you have to focus on the essentials and keep creating value.
“For some people, it may just be the time to diversify, create new products and services to serve a new or existing market. But this must be based on the facts available to you via research and market surveys”, he said.
The SMEs expert also said the present time in the life of an entrepreneur is a time to cut off unnecessary excesses that surround one’s business.
“Those extra costs that may hamper your growth in this season and beyond, and focus on just essentials.
“SMEs should find certain leverages that are available to aid their business growth. This could be in form of grants, knowledge, and other leverage tools.
“Collaboration is one big way to grow in this season. Finding ways to collaborate with like minds instead of competing could enable a product or service gain advantage in the market and beyond.
“They should also find ways to sustain and grow their customer relationship as this is key to sustaining business flow. They must seek new and efficient ways to serve their customers and gain their loyalty”, he stated.
He further called on every entrepreneur to keep building capacity and never take their eyes off their visions, adding the need to muster every courage it takes to keep building and moving forward.
Lilian Peters