Otunba Subomi Balogun, a prominent Yoruba man from the Ijebu stock, is the first Nigerian to own a bank. He shared his challenges of how he managed to survive the difficulties in getting the licence.
He reminisced of how late Chief Alex Ekwueme, former President of Nigeria played a vital role.
This is an extract from the interview he granted with Vanguard newspaper
After the prayers, he took time out to chat with journalists where he talked about his relationship with God and how one time Deputy Governor of Central Bank of Nigeria, Alhaji Amusa Oladimeji Gbadamosi Otiti, and former Vice President of Nigeria, late Dr Alex Ekwueme were instrumental in realising the dream of First City Monument Bank (FCMB).
How did your ambition to own a bank become a reality?
I am a very appreciative person when you do any good to me. I was happy to give the testimony publicly during the 90th birthday of Alhaji Otiti and I am doing the same thing with late Dr Alex Ekwueme. What I did at that time was unheard of in this country, for one individual single-handedly to say he wanted to establish a bank.
They wanted you to get a white technical partner. Beyond that, in the history of Nigerian banking industry, I think there was only one person who started something in the name of a bank, late Chief Okupe. He was only doing what was called money lender enterprise, there was a statue that allows somebody to be lending, but nothing more. But to say that you want to set up a bank providing financial services and have branches all over the place without a foreign technical partner was not available in this country.
But I was inspired by my God through the mouth of a 9-year-old son of mine. We were praying and the young boy went to his mother and said “when we were praying I just pity daddy. Why can’t he go and start his own bank, instead of wanting to be the Chief executive of somebody’s bank?”
When my wife told me, I thought she was becoming faithless that we were praying to God, and saying why not leave things in His hands. Then I told my wife that God was speaking to a 9-year-old boy. The young man is 47 years old now. And I made up my mind that I would do it. Naturally, human beings feel not everything is possible but with God all things are possible. All I was doing was praying, but God will not come personally, He will use other people.
So, it was Alhaji Otiti and the former Vice President, Alex Ekweme, who were used directly by God to assist me in doing what many people thought was impossible. In the case of Otiti, he was CBN deputy governor and someone in the Central Bank just mentioned it to me that “we can not give you a license because you don’t have a technical partner”. You know my reply? I said “God is my partner”.
Having said this, I knew some people in the Central Bank and something just struck me and I told my driver, take me straight to Alhaji Otiti’s house.
When I got to his house, the house help said he had gone to the CBN governor’s house to break his fast as they were both Muslims. Again, I told my driver to go to the CBN governor’s house. By the time we got there, I was already emotional and was shedding tears. I got to the gate and said I must see Alhaji Otiti, I learnt that he is with the CBN governor.
I thought those people seeing a big man crying said we must help this man. So Otiti and the CBN governor rushed out and I said big brothers, these people want to scuttle my ambition of owning a bank because they said I don’t have a foreign technical partner. So, I can’t be given a license to run a bank, I also said other emotional things. Alhaji Otiti calmly said, “Subomi don’t worry, the CBN governor and I would arrange something provisionally which will enable you to run that bank and later on look for a foreign technical partner.
I did not think it was possible when another CBN official had said no way, go, you can’t own a bank on your own. Alhaji Otiti was the first person to put my mind at rest, but Otiti and the CBN governor at that time were not giving the license. I had a friend, Dr. Alex Ekwueme, who was the Vice President. We had been friends before the war and after he came back after the war.
So, at the Cathedral Church, my wife and I planned that when Alex was being led out that I would grab the dress and my wife would grab that of his wife. When we made the moves, the security people with them thought something was wrong with us, but Alex looked back and said “Subomi, Bimbola, what is happening?
Do you know what I told him? I said “Mr. Vice President, why are you not giving me a license?” My wife went to his wife and said “my husband wants something, only your husband can give him”. If you read my book it is there.
So, Alex said we should come to see him and he assured me that the following Thursday I would get my license. By 3 pm of that Thursday, a minister phoned me and he said “Egbon (Big Brother), congratulations, the Vice President said that your license has been approved”. That was how the floodgate of Nigerians owning banks started. When I had my license, people were amazed.
I am a person who is always grateful to my God and appreciative of whatever you do for me. If you give me just tea to drink, I will thank you, it is my life. What Otiti did for me was to give me hope, but Alex wrapped it up and gave me the licence.
How did your relationship with late Alex Ekwueme start?
I gave the whole story of what I did for him and he did not forget. During the civil war many of our friends from the East abandoned everything they had and went away. The war was so hot that many people did not think it was right to remain in Lagos. The first house I built in my life in Apapa, Alex had the next building to mine. As soon as the war started, some pool players took over the house and were playing pools there.
They would be there until midnight, but in wanting to protect my own house from being burgled by those people, I arranged for the police to evacuate them and having done that, I renovated the house and rented it out to a lady from the East and I was collecting rent. When the war ended, Alex Ekwueme returned to Lagos and came to see me. After the exchange of pleasantries, I went to my room and brought out a big envelope.
In those days, we didn’t use cheque much, it was all cash. So, I gave him the money. I told him “I renovated your house, rented it out and this is the rent we collected”. Dr Alex Ekwueme looked at me.
A number of our friends from the East lost their houses. Some so-called friends took over their houses and claimed they were given. But for somebody who was not familiar with him to take care of the house, rented it out and came to hand over the rent collected to him, Alex could not believe it. All he could mutter was “Mike, I am grateful.
That was how the friendship between us started. You know the next thing he did? He said “with what you have done for me let us do something to help the returnees from the war zone” and I said what can we do? He said we should be selling building materials to rebuild the war-torn areas. It is in my book. So, we started a company, which we called the Renaissance Builders Merchant. We were buying plywood and all sorts of building materials.
Alex’s brother, Lawrence was the salesman and we were making raw money. Every weekend we would balance our accounts. After service, I would go with an envelope to Alex with his share of the profit. I never knew that God was going to use him to do something in my life and that of Nigeria, so that friendship was so close that when I first went to Oko, his home town, the people gathered to break kola nut to thank me.
I made sure I opened a branch of the bank in his hometown and a property owned by him. It was a godly relationship between us, as God used Alex for me and also used me for Alex. It is a lesson for Nigeria.