“Between Nigeria and France, there is a Special Relationship at a Special Time”
On the sidelines of the State Visit of H.E. Bola Ahmed Tinubu, President of the Federal Republic of Nigeria, to France (November 27 – 29, 2024), Financial Afrik & Kapital Afrik spoke with the Chairman of Access Holdings PLC, Aigboje Aig-Imoukhuede, who presides the France-Nigeria Business Council. He expressed his satisfaction on the way government relationships are evolving between France and Nigeria, but also on the many opportunities given to the private sector -especially the banking sector- to get involved.
By Christine Holzbauer, Special Envoy
Are the outcomes of H.E. Bola Tinubu’s State Visitmatching your expectations from the point of view of the France-Nigeria Business Council?
The Nigerian President’s visit to France highlights the longstanding and increasingly robust relationship between our two nations. This relationship has been significantly strengthened by President Macron’s commitment to fostering deeper ties. Over the past six years, three Nigerian banks have successfully commenced operations in France, demonstrating the tangible progress in our economic collaboration. We anticipate that another Nigerian bank will soon establish its presence here, further cementing this partnership.
Additionally, Nigeria’s appeal as a viable investment destination is becoming clearer. Historically, French businesses, aside from major players like Total and Danone, often entered and exited the Nigerian market. However, after eight challenging years marked by policy missteps that adversely impacted the economy, it’s now critical to showcase Nigeria’s immense potential.
This visit comes at a pivotal moment. Inflation is declining, and foreign investors making Euro-based investments in Nigeria are well-positioned to reap fair valuations and strong returns. This window of opportunity will narrow as market conditions tighten, making this a truly special time for Nigeria-France relations to flourish further.
And from the point of view of Access Holdings PLC?
Access Holdings Plc, through the Banking Group, is now firmly positioned in key trade hubs across Europe. With established operations in the United Kingdom and France, and the recent acquisition of a license to operate in Malta, we are demonstrating our commitment to global expansion. Our progress is underscored by a remarkable financial transformation – which has seen us grow our balance sheet from just $5 million fifteen years ago to a current total balance sheet of $4 billion, supported by capital assets of $400 million.
Looking ahead, our aim is to consolidate this global presence while contributing meaningfully to the global financial ecosystem. At Access Holdings, we envision ourselves as a vital gateway between Africa and the rest of the world. Having successfully operated within the English-speaking corridor, we are now turning our focus to replicating this success across French-speaking, Portuguese-speaking, and other strategic corridors.
Why is the French market so attractive to Nigerian banks?
France is a pivotal trade partner in West Africa and plays a critical role in the region’s economic activities. It also serves as a key trade hub within the European Union corridor, making it a natural gateway for Nigerian banks to expand their operations and strengthen their entry into Francophone countries in Africa.
The flows of capital – whether in trade, finance, foreign direct investments, or treasury operations – must inevitably pass through banks. This makes the French market a strategic fit for Nigerian banks looking to facilitate these transactions and deepen their involvement in regional and global financial ecosystems.
At Access, our extensive experience with international and government relations has positioned us to thrive in this environment. Transitioning from lending in dollars or sterling to euros is a seamless process for us, particularly when working with African governments operating within the CFA monetary zone.
Additionally, our success in the UK market, especially in facilitating trade and the purchase of secondary residences, provides a model for expansion. Through our French subsidiary, we can replicate this success by offering services to clients who wish to invest in Paris and other parts of France. This approach not only enhances our offerings but also strengthens our position as a trusted partner in international banking.
Are the erratic fluctuations of the Naira an impediment to the coming of ECO, the ECOWAS common currency?
In the current economic climate, the answer is undoubtedly yes. For the Naira to serve as an anchor for the region, Nigeria must first achieve medium-term currency stability, which we envision as a process spanning approximately ten years.
Historically, the Naira has depreciated against the dollar at an average rate of 10% per year, largely due to inflation differentials. While this level of depreciation is manageable and predictable for planning purposes, the past two years have been marked by significant volatility and accelerated devaluation caused by prior policies.
However, with the reforms introduced under the Tinubu administration, we are optimistic about a return to more stable depreciation rates. Stabilising the Naira is a critical step not just for Nigeria but for the broader ECOWAS region, as it lays the groundwork for the successful adoption of the ECO currency in the future.
The cultural industrial sector is particularly favoured both by French and Nigerian investors. What isAccess Holdings’ contribution specifically to this area?
At Access Holdings, we recognise that activities in arts and culture are often more aligned with sustainability goals than with immediate financial returns. However, we also see arts and culture as critical markers of societal development, reflecting the vibrancy and creativity of our communities.
Over the years, we have actively supported initiatives that promote Nigeria as a hub for business and culture, creating a unique experience for both local and international stakeholders in the financial sector. It’s worth noting that major international financial centres, such as New York and London, have strong ties to the arts and culture scene, which significantly enhances their global appeal. We aim to replicate this synergy in Lagos, positioning Nigeria as a leading financial and cultural hub.
Looking at the theatre scenes in New York and London, one can see how specialised funding structures have facilitated the production of world-class theatre and film projects. These specialised “investment houses” understand the unique risks of creative productions and successfully convert them into investable opportunities, using a mix of debt and equity instruments. Unfortunately, such institutions are largely absent in Africa, and this gap must be addressed.
While financial institutions like Access Holdings can provide some level of support, the real opportunity lies in fostering the development of specialised investment institutions dedicated to the cultural industries. By doing so, we can unlock the full potential of the creative economy, positioning it as a key driver of sustainable growth across the continent.
In Africa, most seasoned bankers come from Citibank. Is this model to be encouraged or do you think that the time for a Nigerian way of banking has come?
There is no question that Nigerian banking professionals have demonstrated to the world that Africa can produce world-class talent. As Nigerian banks successfully replicate their achievements in reforming banking systems across multiple markets, our distinct approach to banking is becoming increasingly evident.
For instance, in Ghana, where Nigerian banks have a significant presence and a track record of sustained success, many of the emerging CEOs honed their skills within Nigerian subsidiaries. This reflects the growing influence of the Nigerian banking model in shaping the leadership and operational excellence of Africa’s financial institutions.
Looking ahead, the African banking sector will inevitably focus more on its own unique brand of excellence, built on the strengths and innovations emerging from within the continent. At Access, we aspire to rank among the leading financial institutions driving this transformation, serving as a role model for others and showcasing the immense potential of African ingenuity in the global financial ecosystem.
