Mustafa Chike-Obi: New task for a tested performer

BY EMEKA EJERE

The emergence last week of the Chairman of Fidelity Bank, Mr. Mustafa Chike-Obi as the president of Bank Directors Association of Nigeria (BDAN), is no doubt a huge addition to the very busy schedule of the accomplished investment banker.

BDAN is a non-profit making organisation, limited by guarantee, which was set up to be an effective forum for representing the interests of Bank Directors in Nigeria. It seeks to promote sustainable banking best practices within banks in Nigeria and collaborate with regulatory agencies and other stakeholders to ensure the public’s interest.

The Executive Secretary of BDAN, Adebukola Orenuga in a statement said Chike-Obi’s appointment, which followed the successful completion of Osaretin Demuren’s tenure, was ratified by the Forum for Banks’ Chairmen organised by the association in June 2021.

With over 40 years of experience in investment banking and the financial services sector, working with reputable global investment banking and asset management firms, the incoming chairman is widely believed to have what it takes to take the association the next level.

He was appointed to the Board of Fidelity Bank Plc in August 2020 and is currently the Executive Vice Chairman at Alpha African Advisory where he provides overall leadership and has direct oversight over the capital raising division.
His announcement last year as the successor of the then outgoing chairman of Fidelity Bank Plc, Mr. Ernest Ebi,provoked expectations both from within and outside the leading tier 2 financial service provider.

While those who saw Ebi as an excellent performer expected Chike-Obi to follow his footstep in order to meet the demands of the new office, those who saw performance gaps in Ebi’s tenure expected the new chairman to improve upon the achievements of his predecessor in order to take the banking brand to a greater height.

But what seemed to unite both sides of the divide was the fact that stepping into the big shoes of an accomplished boardroom guru like Ebi required a combination of experience, competence, exposure and influence among other qualities. Findings show Chike-Obi has since proven a perfect choice, a credential his latest appointment boldly attests to.

His banking career in Nigeria started with Chase Merchant Bank where he functioned as the Head of Treasury Department from 1980 to 1982 and was Founding President at Madison Advisors, a financial services advisory and consulting firm in New Jersey, specializing in hedge funds and private equity investment advice.

He also served as the Managing Director, Fixed Income at Shoreline Group and held senior positions at Goldman Sachs, Bear Stearns and Guggenheim Partners in the United States amongst others, where he acquired a broad knowledge base in capital market operations in both mature and emerging markets, including the development and marketing of fixed income securities products to institutional investors.

His vast experience includes serving as the Chairman of the Public Securities Association Trading Practice Committee of the National Association of Securities Dealers, overseeing mortgage-backed securities. Mr. Chike-Obi was educated at the University of Lagos and Stanford University School of Business where he obtained a Bachelor’s degree in Mathematics (First Class Honours) and Master’s in Business Administration (MBA) respectively.

Before joining Alpha African Advisory, he was the inaugural chief executive officer, Asset Management Corporation of Nigeria (AMCON), a federal government backed institution, established to resolve the problem of non-performing loan (NPL) assets of Nigerian banks after the 2008 global financial crisis.

The concept of AMCON is in consonance with the operation of the National Asset Management Agency of the Republic of Ireland and Malaysia Pengurusan Danaharta. The corporation acted as the buyer of banks for federal government by acquiring the NPLs. The original book value of the acquired NPLs was N4.02trillion at a price of N1.76trillion with a commensurate issue of Zero Bond for the NPL acquired.

After several years living abroad among the Nigerian diaspora, Chike-Obi returned to the country in 2010, sensing that he could make a positive impact. He immediately began to do just that through his position as AMCON’s CEO, where he played a key role in setting the national tone for fiscal responsibility, accountability and efficiency.

Chike-Obi said he would continue to pursue the mandate of BDAN by working with relevant stakeholders to ensure banks play a more active role in the nation’s economy.

“As the chairman of this important Association, I plan to represent more robustly, the interest of the banking industry and to project the image of the banking industry as an essential partner with our customers and the Nigerian economy as a whole”, he noted.

“These are no doubt interesting times given the Covid-19 pandemic and resulting economic challenges and I look forward to partnering with shareholders as well as customers, regulators and all other players to contribute our quota to positioning the Nigerian economy for sustainable growth and recovery.”