IMPACT OF CHANGE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS IN SOUTH EAST NIGERIA

ABSTRACT

This study investigates the impact of change management on organizational performance in the Nigerian banking sector. Specifically, this study sought to: (i) determine the extent to which technological innovation enhances profitability in the Nigerian banking sector, (ii) ascertain the extent to which resistance to change is a function of employee satisfaction (iii) determine the effect of teamwork on organizational growth in the banking sector, (iv) assess the relationship between effective communication and improved productivity in the banks under study and(v) ascertain the extent to which employees’ participation in decision making during change process improves organization’s market share. The study adopted the survey design. The population of the study was 9797 staff from ten (10) Deposit Money Banks in South-East Nigeria that were selected purposively from the top 50 banks in Africa that have branches in the major cities in South East Nigeria and whose customer base and market share have been consistent in growth in the last ten years. The sample size of 972 was obtained using Suresh and Chandrasekhar’s formula (at 5% error margin).  Stratified sampling technique was used to select the respondents in each of the selected Deposit Money Banks. Data were collected using the questionnaire research instrument and interview guide.  A pilot study was conducted using split-half method and tested with Spearman Brown, giving a coefficient of 0.89, indicating the reliability of the instrument. Validity of instrument was measured using face validity, and this  was done by sending the prepared research instrument to management experts from both the industry and the academia. Data collected were analyzed using Regression Analysis and Z-test statistics, at 5% probability level of acceptance (that is p < 0.05). The study found that application of technological innovation, significantly enhanced profitability in Nigerian banks (p< 0.05,r = 0.960). Resistance to change to a large extent, was a function of employee satisfaction (p< 0.05,z = 3.657). Teamwork had positive effect on organizational growth in the banking industry (p < 0.05,Z = 6.378). There was significant positive relationship between effective communication and improved productivity in the banks under study (p < 0.05,r = 0.960). Employees’ participation in decision making during change process significantly improved organizations market share (p = < 0.05,r = 0.970). The study in conclusion revealed that effective change management on organizational performance is  achieved when technological innovation are utilized, resistance to change mitigated, communication is well enhanced and employee participation in decision making constantly initiated. The study recommended that Nigerian banks should adopt technological innovations that enhance profitability; design programmes that will help mitigate employees’ resistance to change; ensure effective communication processes; and involve employees in decision making during change processes.

CHAPTER ONE

INTRODUCTION

1.1      Background to the Study

The term change has been existing for as long as the word, organization. Change is constant, a thread woven into the fabric of our personal and professional lives. Quoting Ewurum (2007, p.205), “to change something implies altering it, varying or modifying it in some ways”. Change occurs within our world and beyond — in national and international events, in the physical environment, in the way organizations are structured and conduct their business, in political and socio economic problems and solutions, and in societal norms and values. Quoting Akarele and Akarele (2000, p.794), “change is an inevitable part of human being, the institution they establish as  well  as  their  environment”.  As  the  world  becomes  more  complex  and  increasingly interrelated, changes seemingly far away affect us. Thus, change may sometimes appear to occur frequently and randomly. We are slowly becoming aware of how connected we are to one another and to our world.   To Agbaeze (2008, p.84),“all organizational activities are under pressure for change; hence organizations must also be cognizant of their holistic nature and of the  ways their  members affect  one  another”. The  incredible amount of change  has  forced individuals and organizations to see “the big picture” and to be aware of how events affect them and vice versa.

Change is simply ‘‘a state of transition between the current state and a future one, towards which the  organization  is  directed’’,  (Cummings  and  Huse,1985,  p.12;  Moorhead  and  Griffin,

1995).Organizational change is any action or set of actions resulting in a shift in direction or process that affects the way an organization works(Pettigrew and Whipp, 1991). Change is the only element of human phenomena that is constant. Change can be deliberate and planned by leaders within the organization (e.g., shift from inpatient hospital focus to outpatient primary care model), or change can originate outside the organization (i.e., budget cut by the National or State Assembly) and be beyond its control. Change may affect the strategies an organization uses to carry out its mission, the processes for implementing those strategies, the tasks and functions performed by the people in the organization, and the relationships between those people. Naturally, some changes are relatively small, while others are sweeping in scope, amounting to an organizational transformation. Change is a fact of organizational life, just as it is in human

life. An organization that does not change cannot survive long, much less thrive in an unpredictable world (Pasmore, 1994).

Several factors may make organizational change necessary, including new competition in the marketplace, introduction of new technology or new demands by customers. These types of external forces may create expectations of improved efficiency, better service, or innovative products. When organizational change is well planned and implemented, it helps assure the organization’s  continued  survival (Berwick,  1996).  It  can  produce  many  tangible  benefits, including improved competitiveness, better financial performance, and higher levels of customer and employee satisfaction (Berwick, 2006).

These benefits may take some time to achieve, however, and the transition period that accompanies major organizational change usually is a time of upheaval and uncertainty. Not every individual in the organization will benefit personally from change; some will be casualties of change, especially if jobs are cut or realigned. But “change should make the organization as a whole stronger and better equipped for the future” (Wilson, Sowden and Watt, 1999, pp. 34-35;

2007). When the need for change arises, the effectiveness with which it is communicated to employees matter. When the need and expected benefit of change is well communicated to employees and when they perceive they are well carried along, it would help reduce resistance to such change process, improve employees moral, productivity and organizational performance.

Change Management is a conscious and concerted initiative by those who are in-charge of the destiny of the business undertaking or firm to keep a constant and intelligent watch over the behaviour of uncontrollable forces, to assess their  impact  and  influence of the controllable forces, and to  evolve appropriate strategies and  action programmes to  maintain a dynamic equilibrium between the controllable and uncontrollable forces. Change Management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state (Muturi, 2006).

The root of change in the organization and change management can be found in the so-called soft science of psychology where change management is applied to help people deal with traumatic emotional issues like death in the family or knowledge of one’s own impending death. The increased popularity of Change Management in  business environment can be dated back to the

mid-1990s when Business Process Reengineering (BPR) summarized restructuring efforts of companies often did not deliver the promised results (Al-Ani and Gattermeyer,2000; Brück,

2002). Not addressing the resistance of people to change was identified as key problem of the poor implementation results of many BPR projects. Change Management, that deals with the emotional response to change is therefore sometimes termed as the soft side of BPR that helps stakeholders deal with dramatic changes on how they earn their livelihoods (Argyris, 1991).

Many organizations are occasionally faced with challenges that force them to adjust or change (Burnes, 2004). To Adeyeye (2009, p.15), “the rate at which business environment produces change these days is growing at an alarming rate”. Development organizations, in particular, regularly have to go through change processes when having to respond to new development scenarios or simply as part of their expansion or restructuring processes. The implications of change processes are regularly under-estimated by senior management and not managed adequately. Ansoff (1987) asserts that  leadership can make a great  difference, and that  its importance for organizational success is intensifying. Yet we still know too little about the qualities and practice of effective organizational leadership and change management.

The  banking sector is a  major sector which has significant contribution to  socio-economic development. The external changes that have been facing the organizations provide an avenue for thinking. Managers have adopted change practices with varying levels of success. “While studies on change have been done on manufacturing, (Shem, 2005) public sector (Nyamache,

2003) International Development organizations (Muturi, 2006) and in other corporations, not much has been done on the banking sector in Nigeria. This study therefore provides insights on change practices in these organizations.

The origin of the Nigeria banking system dates back to the colonial period and was under the control of the foreign expatriates. In 1894, the Bank for British West Africa (known today as First  bank  of  Nigeria)  was  established  in  Lagos,  mainly  to  facilitate  commerce  between Nigerians and their British counterparts in business. The Barclay’s bank (which is today known as Union Bank) followed by in 1917 and in 1933 the National Bank of Nigeria and the Africa Continental Banks followed in 1948 (Okpanachi, 2011). This indigenous banks were left to operate in the periphery of banking business; even the state government owned banks that were

established were anxious to stay in the big cities where they could generate profitable business quickly, rather than see themselves as vehicles for rapid transformation and development of the rural sectors of the estate that owned them.

In the anxiety to survive, the indigenous banks lost sight of the objective of their founders in the direction of serving the needs of the rural population but instead focused their strategies on the big cities like the  foreign banks who have always been out to promote the interest of the metropolitan headquarters, while some of the estate banks were pressurized politically to extend their operations to some semi-urban areas (Ajayi, 2005).

Between 1953-1959 there was serious bank failures. This happened because banks then did not have enough liquid assets to meet customers’ need. There was no well-organized financial system with enough financial instrument to invest in; hence banks merely invested in real assets which could  not easily be converted to  cash without loss of value  in terms of need. This prompted the Federal government then, backed by the world report on the need to have a governing agency for banks to promulgate the ordinance of 1958 which established the Central Bank of Nigeria (CBN). The year 1959 was remarkable in the Nigeria Banking History not only because of the establishment of the CBN but the treasury bill ordinance was enacted which led to the issuance of our first treasury bill in April, 1960 (CBN, 2006).

The Nigeria Banking sector have undergone important structural and institutional changes over the last few decades caused by the restructuring and liberalization of  the financial market and have had significant implications for the nation’s banking sector (Asogwa, 2003). The restructuring and liberalization of the financial market were undertaken as one of the blue print of the Structural Adjustment Program (SAP) of the government. “Overall, the banking sector has experienced steady consolidations through recapitalization and mergers and acquisition that have resulted in fewer banks holding a greater value of the total asset in the sector” (Okpanachi, 2011, p.1).

The consolidation process in Nigeria has basically been driven by government restructuring effort rather than being a market based process (Asogwa, 2003). Consolidation has been used as an efficient way of resolving the stress among banks (Okpanachi, 2011). There have been several

cases of “purchase and assumption”, basically an acquisition form of transaction which involves purchasing the asset of the failed banks and assumption of its liabilities (particularly deposits) by other insured banks or private investors (Ajayi, 2005). The major aim of the consolidation program was to shore up the capital base of banks consolidated through merger and acquisition. This allows foreign banks to participate in the banking industry by providing additional capitalization through investment infrastructure in new banking products, operating technologies and buying shares of the existing banks. The banking sector reforms involve the reform of the regulatory and supervisory framework, the safety net arrangement as well as the mechanism to speed up attempts at resolution of banks non-performing loans (Berger, Demsetz and Strahan,

1999; International Monetary Fund, 2001).

Most  organizational  managers  today  would  agree  that  change  has  become  a  constant phenomenon which must be attended to and managed properly if an organization is to survive. Changes in technology, the marketplace, information systems, the global economy, social values, workforce demographics, and the political environment all  have a  significant effect  on the processes, products and services produced. The culmination of these forces has resulted in an external environment that is dynamic, unpredictable, demanding and often devastating to those organizations which are unprepared or unable to respond (Burnes, 2004).

According to Schaffer (1992), those organizations which do survive are often relegated to the role of playing “catch up” to their competitors, while others are either absorbed into larger entities via mergers or acquisitions or simply dissolved into a collection of corporate assets and liabilities. In fact, many of the popular trends in management and organizational consulting such as business process re-engineering, total quality management and the  learning organization, represent systematic methods for responding to and channeling effectively the forces of change. Unfortunately, the vast majority of improvement initiatives undertaken by organizations, even with the best of intentions, are destined to have little impact.

While organizational change is a constant experience, knowledge and awareness about many of the  critical  issues  involved  in  the  management  of  such  change  is  often  lacking  in  those responsible for its progress. Clearly, if organizations are ever to experience a greater level of success in their development efforts, managers and executives need to have a better framework

for thinking about change and an understanding of the key issues which accompany change management. Organizational change should be carried out in the organization in such a way that it wouldn’t cost the organization much, would be appreciated by the employee with little or no resistance and must be effective enough to meet the reason for the introduction of such change process   (Fajana,   2002).   Change   management   has   been   linked   to   the   organization’s competitiveness and response to changes in the environment. Ansoff and McDonnell (2000, p.18), state that “changes arise out of the need for organizations to exploit existing or emerging opportunities and deal with threats in the market”. It is crucial that organizations seek to create a competitive advantage and wherever possible innovate to improve their competitive positions. This implies the readiness to change within the organization and the ability to implement the proposed change.

A  host  of  external  factors  influence  an  organization’s choice  of  direction  and  action  and ultimately, its organizational structure and internal processes. These factors, which constitute the external environment, can be divided into three interrelated Strategy categories; they are: factors in the remote environment, factors in the industry environment and factors in the operating environment (Pearce and Robinson, 1991). Organizations manage change directly. Balogun and Hailey (1999) identify important contextual features that should be taken into account when designing change programs. These include the scope, institutional memory, diversity of experience within an organization, the capability of managing change and the readiness for change throughout the different levels in the organization. Dessler (2011, p.315) asserts that, “organizational turn around often starts with a change in the firms strategy, mission and vision with strategic change”.

There are different approaches to managing change; some are sudden, planned and incremental (Mou 2004). Kazmi (2002, p.41) asserts that “change is not linear and therefore cannot be worked on a mathematical formula basis with a set of variables that will yield a fixed answer for their combination”. Aosa (1996) Kamugisha (2013, p.4) points out the necessity of carrying out change within the context of unique environmental challenges within Africa. Therefore change is context and environmental dependent, and there is no one best way (Dubey and Sanjeev, 2012).

Organizational performance is the analysis of a company’s performance as compared to their set goals and objectives. Within corporate organizations, there are five primary outcomes analyzed. Financial  performance,  market  performance,  shareholders  value  performance,  production capacity performance and employee commitment. Employee commitment is most times inspired by the satisfaction employees get from their organization (Kaplan, 2001).To determine how well an organization performs, there must be yardsticks for measurement. This would lead us into performance measurement. Organizational performance is not a new concept, but rather an old concept of renewed importance today. In 1943, the Internal City Management of the United States of America published an article of measuring the performance of municipal activities (Gamble, Stickland and Thompson, 2007). During the Kennedy administration, system analysis processes were introduced to the Department of Defence which fuelled interest in performance measurement in the federal government. Other agencies began experimenting in performance measurement,   when  the   Johnson  administration  introduced  what   they   called   Planning Programing Budgeting System (PPBS) (Ittner and David, 2003; Simon, 2005). Eventually, more and more states and local government began using performance measurement to improve their management and budgeting. The use of performance measurement became a common practice in the 1970’s with the introduction of new social programs that needed to be assessed. However, interest  in performance measurement did dwindle in the 1980s as people did  not  perceive benefits of using performance measurement in making decisions. In 1990s the need to measure performance in organizations was re-energized as the demand for holding government entities accountable to public increased. A number of resolutions were passed by associations such as the National Academy for Public Administration, urging government to set goals and measure their performance and  in 1993,  The  Government Performance Result  Act  was published  by the Federal government requiring their agencies to become involved in strategic planning, goal setting and performance measurement (McCurry, 2010).

In our society down here in Nigeria, performance measurement has really not been given enough priority especially in government ministries and parastatals. It is more pronounced and effective in private organizations such as the banking industry where performance determines employee’s promotion, demotion or termination of appointment. For the purpose of this work, we would dwell more on two of the proxies of performance; Productivity and Employee satisfaction.

Productivity is mostly dependent on the available organizational resources. Productivity is the economic measure of output per input. These input include labour, capital, raw materials etc. “While the output include goods and services. Productivity in organization talks about the unit of output gotten from a measured unit of input” (Weighrich and Koonz, 2005). They perceive also that the forces of change could come from internal or external means. Some internal factors may help organizations improve productivity, this include training of staff, assigning responsibilities, giving incentives, making use of teams etc. As Ugbam (2011, p. 336) states, “organizations are increasingly making use of teams to achieve their objectives”. These objectives include increased productivity. Onodugo and Igwe (2010, p.95), maintains that, “team building is one of the imperatives for a successful organization”.

Productivity could further be said to be the measure of the efficiency of a person, machine, factory system etc. in converting input into output, semi- finished or finished product. Inability to explore  the  full  potential of available  resources  is  evident  in  majority of organizations  in developing countries such as Nigeria. The reasons for this low productivity are industry specific and dependent on factors unique to the socio economic conditions of the organization and the country at large.The banking sector plays a vital role in any economy for three main reasons. Firstly by generating direct and indirect employments and secondly by contributing to the growth of overall gross domestic product (GDP) that provides a foundation for growth in other sectors of the economy(through lending ,etc., ) and by safe guarding peoples valuables, especially finance. Therefore, the stability of this sector is significantly important for any country irrespective of the level of development. However, the banking sector in Nigeria has for some time been going through a state of transition (due to merger and acquisitions.)

Employees’ satisfaction relates to employee’s personal evaluation of jobs against those issues that  are  essentially considerable to  them.  “As  emotions  and  feelings  are  involved  in  such assessments, employees’ levels of job satisfaction may impact significantly on their personal, social and work lives, and as such, also influence their behavior at work”(Sempane, Rieger and Roodt, 2002; Tanvir and Shahi, 2012, p.126). The importance of employee satisfaction and work motivation is growing all the time in organizations. Many researchers have been made to find out the effect employee satisfaction have on productivity in organizations.

Over the years, employee satisfaction has been a key area of research among industrial and organizational psychologists. There are important reasons why companies should be concerned with employee job satisfaction, which can be classified according to the focus on the employee or the organization. First, the humanitarian perspective is that people deserve to be treated fairly and with respect. Job satisfaction is the reflection of a good treatment. It also can be considered as  an  indicator  of  emotional  well-being  or  psychological  health.  Second,  the  utilitarian perspective  is  that  job  satisfaction  can  lead  to  behavior  by  an  employee  that  affects organizational functioning. Furthermore, job satisfaction can be a reflection of organizational functioning. Differences among organizational units in job satisfaction can be diagnostic of potential  trouble  spots.  Each  reason  is  sufficient  to  justify  concern  with  job  satisfaction. Combined they explain and justify the attention that is paid to this important variable. Managers in many organizations share the concerns of researches for the job satisfaction of employees. The assessment of job satisfaction is a common activity in many organizations where management feels that employee well-being is important, (Spector 1997).

Some people like to work and they find working an important part of their lives. Some people on the other hand find work unpleasant and work only because they have to. Employee satisfaction tells how much people like their jobs. Employee or Job satisfaction as some call it, is the most studied field of organizational behavior. It is important to know the level of satisfaction at work for many reasons and the results of the job satisfaction studies affect both the workers and the organization. In the workers’ point of view it is obvious that people like to be treated fairly. If workers feel respected and satisfied at work it could be a reflection of a good treatment. In the organization’s point of view good job satisfaction can lead to better performance of the workers which affects the result of the company. Employee satisfaction is generally considered as the driver of the employee retention and employee productivity. “Satisfied employees are a precondition  for  increasing  productivity,  responsiveness,  quality,  and  customer  service”, (Kaplan, 1996, p.130).

The level of job satisfaction is affected by intrinsic and extrinsic motivating factors, the quality of supervision, social relationships with the work group and the degree to which individuals succeed or fail in their work. It is believed that the behavior that helps the firm to be successful is most  likely to  happen when the  employees are  well  motivated and  feel  committed to  the

organization, and when the job gives them a high level of satisfaction. Research has shown that the key factors affecting job satisfaction are career opportunities, job influence, teamwork and job challenge, (Armstrong 2006).

1.2      Statement of Problem

Traditional organizational structures and approaches can no longer produce the competitive basis that is required in today’s volatile business environment. Constant change in government policy, introduction of new technologies, climatic conditions, market forces, change in consumers need and wants, and bureaucratic bottlenecks are reasons some organization within the banking sector find it difficult to fit in. The gap bothers on the fact that several research have been carried out on Change Management in various sectors, but unfortunately these empirical studies are mostly foreign based, as none, to the best of my knowledge have been carried out in the Banking industry in South East Nigeria. Also, most organization don’t take cognizance of the human element in creating the strategy needed to implement change, and this leads to constant failure in the change programme. Resistance by employees and certain management level staff is another problem organizations encounter  in  a  bid  to  introduce change.  The  role  of customers has changed. Tailor made individual products and services instead of mass produced product are demanded. This means a shift from make-to-stock and assembly to-order style of manufacturing to mass customization and personalization of need and services. Therefore organizations have to be much more agile and flexible to quickly respond to customer’s wishes and fast changing market needs.

Supported through the falling of borders, the liberalization of markets and the explosive development of technology, many manufacturing as well as service providing firms have scaled to a global level. This entails banks carrying out their activities in such a way that meets today’s global practice. In the banking sector, changes occur because the existing situations and conditions are unfavorable for optimal realization of their desired goals and objectives. The banking industry in Nigeria faces a lot of challenges which include; government policies, poor transportation system, change in technology, merger and acquisition, takeovers of a bank by another, currency devaluation, collapse of the Nigerian stock market, global meltdown which in turn leads to high turnover of employees, security challenges etc. Other problems are the high cost of government imposed tax on business premises, much cost incurred with the constant use

of diesel to fuel bank generators as there is hardly supply of electricity by the Enugu Electricity Development Company (EEDC), certain Central Bank of Nigeria (CBN) policies that affect banks profitability, and the constant uncontrollable changes taking place in the industry.

There is always the need for banks to employ change and creative solutions in other to weather the storm experienced as a result of these environmental factors. Unless people are involved, committed and prepared to adapt and learn, objectives, plans and desired state banks hope to achieve mightfail. Banks today in other to remain in the business go extra mile to please their customers by doing cash pick-ups (which is outside the policy), spend heavily outside normal overhead for security at personal and organizational level, grade roads leading to their offices, etc. change as a major feature of an organizational life has significant influence on the successful implementation  of  business  process  aimed  at  achieving  increased  productivity  through employees satisfaction. Therefore the ability of the bank management to persuade, influence and motivate employees which in turn, depends on how much power they possess will determine how effective approach to change management will be embraced which will in turn increase productivity aimed at helping the organization achieve its desired objective.

Change in one way or the other brings about innovation and sometimes new ways or process of carrying out business activities. Most times this looks strange to employees and embracing such change  becomes  difficult.  Hence,  it  would  be  pertinent  to  discuss  change  as  it  affects performance in the organization, its challenges, management and how employees can be motivated to embrace it and in turn increase quality productivity aimed at achieving the organizations overall objective. To  meet these challenges in a  bid to  fit  into today’s rapid changing business world as well as meet the organization’s internal and external customers expectation, increase the organization’s performance, productivity as well as profitability and its overall objectives, comes the need for the acceptance and constant introduction of change and change management in organizations, hence the need to go into this study.

1.3      Objectives of the Study                                                                    This   study   has   the overall objective of examining the  impact  of change  management on organizational performance. The specific objectives of the study are to:

i.            Determine the extent to which technological innovation enhances profitability in the

Nigerian Banking sector.

ii.            Ascertain the extent to which resistance to change is a function of employee satisfaction. iii.            Establish the effect of teamwork on organizational growth in the banking industry.

iv.            Assess the relationship between effective communication and improved productivity in the banks under study.

v.            Identify  the  extent  to  which  employee  participation  in  decision  making  during organizational change process improves organization’s market share.

1.4      Research Questions

i.       To what extent does technological innovation enhance profitability in the Nigerian Banking sector?

ii.      To what extent is resistance to change a function of employee satisfaction?

iii.      What effect does teamwork have on organizational growth in the banking industry?

iv.      What  is  the  relationship  between  effective  communication  and  improved  productivity experienced in the banks under study?

v.      To what extent does employee participation in decision making during organizational change process improves organization’s market share?

1.5      Research Hypotheses

To achieve the objectives of this study and provide answers to research questions, the following hypotheses have been formulated to guide the conduct of the study:

i.      Application of technological innovation significantly enhances profitability in Nigerian banks.

ii.      To a large extent resistance to change is a function of employee satisfaction.

iii.      Teamwork has positive effect on organizational growth in the banking industry.

iv.      There is significant positive relationship between effective communication and improved productivity in the banks under study.

v.      Effective  employee  participation  in  decision  making  during  organizational  change process significantly improves organization’s market share.

1.6      Significance of the Study

The importance of this study cannot be over emphasized. To future researchers carrying out studies related to this topic, this work would give them a guide on how to go about it. It would serve as a secondary data for future researchers as well as a reference material.

To the banking industry, this study will help them to understand the need and reasons for change, its inevitability and how well it can be managed to achieve employees’ satisfaction, increased productivity and achieve the ultimate goal of the organization.

Considering the focus of this study which exposes the challenges associated with change as well as the prospects of it, this study will help enlighten managers on how to best manage change and reduce resistance associated with it and guide them on how to introduce change in the organization.

As individuals, it would help teach people on how to manage change in their personal lives as people often experience change in almost every facet of life.

To  the  government, policy  makers  and  regulators of the  banking  industry,  this  study will enlighten them on how the rules and regulations they make as well as certain policies they formulate negatively affect not just the banking industry but also other industries in Nigeria. This will make them review certain policies of theirs in such a way that it would benefit the industry in  question,  their  employees,  the  customers,  boost  the  economy,  and  as  well  increase productivity.

1.7      The Scope of the Study

Change comes in different forms and affect various industries across board. No study of this nature can allow one ex-ray the type of change that goes on in every industry in Nigeria. For this reason, this study will focus on the change, its impact and management in Nigerian banking sector as a service providing industry.This study will therefore be limited in scope to cover tenof

the banks within the banking industry and limit them to the deposit money banks in the South

Eastern part of Nigeria.

1.8      Limitations of The Study

The researcher encountered some challenges in the course of this work. Some of the limitations to this study were:

1.         Respondents Time:  The  respondents  were  often  too  busy  to  spare  time  with  the researcher and this posed a lot of challenge as the researcher had to reschedule interview dates with them on several occasions.

2.         Respondents Attitude: Some of the respondents refused giving out information but rather referred the researcher to their Regional Offices as they were scared of divulging information without being certain if it  would have  negative effect on them or their organization.

1.9      Operational Definition of Terms

In the course of the study, we set out below operational definition in respect of terms which we have used.

Change Agents: These are group of individuals whose task is to effect the desired change in an organization. The person or team that will be responsible for actually making the changes and controlling the change process in an organization. The choices are to employ ‘external change agents’, outside consultants who are experts in managing change; or ‘internal change agents’, managers from within the organization who are knowledgeable about the situation, or some combination of both.

Change Management: Management of change is a conscious and concerted initiative by those who are in-charge of the destiny of the business undertaking or firm to keep a constant and intelligent watch over the behaviour of uncontrollable forces, to assess their impact and influence of the  controllable  forces,  and  to  evolve  appropriate  strategies  and  action  programmes to maintain a dynamic equilibrium between the controllable and uncontrollable forces. Change Management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state.

Employee: This refers to one working for someone or for an organization.

Environment: This can be defined as the conditions, circumstances, and influences under which an organism or system exist. It may be described by physical, chemical and biological features, both natural and manmade.

Organizational Change: Organizational change is any action or set of actions resulting in a shift in direction or process that affects the way an organization works.

Organizational Performance: This is an analysis of a company performance as compared to its set goals and objectives.

Planned Change: This is a deliberate attempt to modify the functioning of the total organization, or one of its major components, in order to improve effectiveness. Planned change represents an intentional attempt to improve in some important ways, the operational effectiveness of the organization.

Productivity: This is the measure of the efficiency of a person, machine, factory system etc. in converting input into output.

Resistance: Resistance simply means the refusal to accept or comply with something. It is also the attempt to prevent something by action or through argument.

Satisfaction: This refers to utility derived from something.

1.10    Brief Profile of Selected Banks

Nigerian banks are currently enjoying the dividends of consolidation, merger and acquisitions. There is no doubt that this has made them stronger and able to competitively stand firm in the international community. Recently 11 Nigerian banks were listed among the top 50banks in Africa whose capital base, customer base and profitability has been consistent in growth in the last ten years, and this would not have been without consolidation.

1.10.1 First Bank of Nigeria Plc.

First Bank of Nigeria sometimes referred to as First Bank Plc. is a Nigerian Bank and financial services company. It is the country’s largest bank by assets.

Pre–independence

The bank traces its history back to 1894 as the Bank of British West Africa. The bank originally served the British shipping and trading agencies in Nigeria. The founder, Alfred Lewis Jones, was a shipping magnate who originally had a monopoly on importing silver currency into West

Africa through his Elder Dempster shipping company. According to its founder, without a bank, economies were reduced to using barter and a wide variety of mediums of exchange, leading to unsound practices. A Bank could provide a secure home for deposits and also a medium form of exchange. The Bank primarily financed foreign trade, but did little lending to indigenous Nigerians, who had little to offer as collateral for loan.

Post-independence

In 1957, Bank of British West Africa changed its name to Bank of West Africa (BWA). After Nigeria’s Independence in 1960, the bank began to extend more credit to indigenous Nigerians. At the same time, citizens began to trust British banks since there was an “independent” financial control mechanism and more citizens began to patronize the new Banks of West Africa.

In 1965, Standard bank acquired Bank of West Africa and changed its acquisition name to Standard Bank of West Africa. In 1969, Standard Bank of West Africa incorporated its Nigerian operations under the name Standard Bank of Nigeria. In 1971, Standard Bank of Nigeria listed its shares on the Nigerian Stock Exchange and placed 13% of its share capital with Nigerian investors. After the end of the Nigerian civil war, Nigeria’s military government sought to increase local control of the retail banking sector. In response, now Standard Chartered Bank reduced its stake in Standard Bank of Nigeria 38%. Once it had lost majority control, Standard Chattered wished to signal that it was no longer responsible for the bank and the Bank changed its name to First Bank of Nigeria in 1979. By then, the bank had re-organized and had more Nigerian Directors than ever.

In 1982 First Bank opened a branch in London, that in 2002 it converted to a subsidiary, FBN Bank (UK). Its most recent international expansion was the opening in 2004 of a representative office in Johannesburg, South Africa. In 2005,it acquired MBC international Bank Ltd. And FBN (Merchant Bankers) Ltd. Paribas and a group of Nigerian investors had founded MBC in

1982as a Merchant bank; it had become a commercial bank in 2002.

In  January 2016,  Adesola  Adeduntan was  appointed  Group  Managing  Director  and  Chief Executive Officer, replacing Olabisi Onasanya. Prior to his appointment, Adeduntan was an Executive Director and the Bank’s Chief Finacial Officer. As of 2013, the bank has assets

totaling approximately US$21.3 Billion (NGN 3.336 trillion). At the time, the bank maintained a customer base in excess of 9million individuals and businesses. First Bank of Nigeria has solid short and long term ratings from Fitch, the global Credit Rating Company, partly due to its low exposure to non-performing loan. The bank  has strong compliance with financial laws and maintains a strong rating from the Economics and Financial Crime Commission of Nigeria.

Corporate Identity Refresh

2014 saw First Bank Mark 120years from when it was founded, as the Bank for British West Africa. 2014 also saw the bank refresh its corporate identity, 10 years after the previous refresh. The brand, synonymous with the colour blue and iconic elephant, kept the elephant but a few noticeable changes. The elephant’s head has been lifted, the tusk is larger, the forehead wider, the ear’s less pointy, the trunk longer and the eyes, looking upwards. More noticeable is the absence of the hind legs of the elephant which has instead been replaced by the company’s name. According to the bank, the raised head of the elephant in the refreshed identity is the promise to all customers that with the banks in their corner, they can face challenges with their head held high. The  new deep blue colour, on the other hand represents momentum, innovation and evolution.

The raised foot of the elephant is a promise to always put their best foot forward for their customers and  the  adoption of complimentary colours  platinum  and  gold,  precious  metals identified with value, serves as a reminder of the inherent value and durability of the 120 year old brand. The bank revealed that the rational for the refresh as part of a wider strategic plan to ensure that as a group, FBN holdings was delivering more efficient services that were closer in line with the needs of their customers. The refreshed identity was revealed on January 27, 2014 in Lagos at two separate events for staff, partners, suppliers and friends. In the South Eastern part of Nigeria, First Bank has various Regional offices controlling different branches but these Regions are controlled by their Zonal head whose office is located at their Enugu Main office, Okpara Avenue, Enugu State, Nigeria.

1.10.2 Profile of Diamond Bank Plc

Diamond Bank Plc, is a full service Nigerian bank. Diamond Bank Plc., began as a private limited liability company on March 21, 1991 (the company was incorporated on December 20,

1990). Ten years later, in February 2001, it became a universal bank. Diamond bank Plc. is a Nigeria  based  bank  that  is  engaged  in  the  provision of banking  and  financial  services  to corporate and individual customers. The bank provides its services mainly through four business segments: Retail Banking, Corporate Banking Focuses, Business Banking and Treasury. Retail banking covers all banking activities relating to individuals (consumer banking) and MSME banking. Corporate banking includes all the banking activities relating to multinationals: other large/well-structured companies in oil and gas, power and infrastructure, maritime and transportation,  telecom  /general  services,  manufacturing/trade  and  construction.  Business banking includes all banking activities relating to medium scale enterprises; Treasury department of the company is responsible for the company’s liquidity ensuring a balance between liquidity and profitability.

In January 2005, following a highly successful Private Placement share offer which substantially raised the bank’s equity base, Diamond Bank became a public limited company. In May 2005, the Bank was listed on the Nigerian Stock Exchange. Moreover, in 2008, Diamond Bank’s Global Depositary Receipt  (GDR) was  listed  on the  Professional Securities  Market  of the London Stock Exchange. The first Bank in Nigeria to record that feat.The Bank is a large financial  services  provider  in  West  Africa.  Headquartered in  Lagos,  Nigeria’s  commercial capital, the bank maintains a banking subsidiary in Benin, Senegal, Cote d’Ivoire, Togo and the United Kingdom. As of December 2013, the banks total assets were valued in excess of NGN 1.9

Trillion. Diamond Bank Plc. is one of the Nigeria commercial banks with international presence. The bank ranks among the leading Tier II Nigerian banks in terms of balance sheet size (which grew by a notable 29.7% at FYE 2013), with an estimated market shares of 6.2%, based on total commercial  banking  assets  at  31st   December  2013.  The  accorded  rating  also  incorporated diamond status as a systematic important bank in the country.

Founded by Paschal G. Dozie in December 20, 1990, the present Group Managing Director and Chief Executive Officer is Uzoma Dozie, who took over from Dr. Alex Otti in 2014. As at 2013, the bank had a total of 240 branches in Nigeria, 20 branches in Benin Republic, 2 branches in Senegal, 1 branch in Togo and 3 branches in Cote d’ivoire (Sargdub 2014: 1). Shareholders’ funds grew by 27.6% to 138.9bn in 2013, achieved mainly through earnings retention. As a result, the banks total capital adequacy ratio strengthened to 18.1% (from 17.3 previously).

Notwithstanding the strong internal capital generation and comfortable capitalization level, the bank plans to raise a total of US$750m Tier I and II capital in short-t-medium- term, to enhance its operations.

Diamonds gross non-performing loans ratio reduced to 3.5% in the year 2013 (which compared favorably with the peers average and fell within the regulatory tolerable limit of 5%), following a substantial N17.4bn write off. Arrears coverage appears adequate, with the banks specific arrears coverage ratio ending the year at  61.8% (as against 47.7% in 2012).Although the statutory minimum liquidity ratio was met on a monthly basis during 2013, the bank’s liquidity position is considered low, with the cash and trading assets/ total short term funding ratio falling to 23.7% at FYE 2013 (FYE 2012: 38.8%), well below peer group average of 42.6%.Performance improved during the year, with the bank posting a pre-tax profit of N32.1bn as against N27.5bn in 2012, partly supported by an increase in non-interest income. Upward movement in the rating would follow, a sustained improvement In the bank’s profitability and asset quality. The ratings will be sensitive to a decline in asset quality, earnings and/or lower capital levels.

Diamond bank in the South East recently broke down their Regional offices into Area offices with  each  state  having  a  minimum of  two  Area  offices.  Before  now  the  Regional office controlling Abia and Imo state was their branch located at Ikenegbu Road, Owerri, Imo State while that of Plot 40 Garden Avenue controlled the branches in Enugu and Ebonyi States. Awka area office located at 208 Ziks Avenue Awka, controls the branches in Awka and its environ, while that of Sokoto road Onitsha controls that of branches in Onitsha and Nnewi in Anambra State.

1.10.3 Profile of United Bank for Africa Plc.

United Bank for Africa Plc (UBA) is a public limited company incorporated in Nigeria in 1961 and headquartered in Lagos. It is one of Africa’s leading financial institutions offering universal banking to morethan 7 million customers across 750 branches in 19 African countries and a presence in New York, London and Paris. Formed by the merger of the commercially focused UBA and the retail focused Standard Trust Bank in 2005, the Bank has a clear ambition to be the dominant and leading financial services provider in Africa. Listed on the Nigerian Stock Exchange in 1970, UBA is rapidly evolving into a pan-African full service financial institution.

History

UBA’s history dates back to 1949 when the British and French Bank Limited (“BFB”) commenced business in Nigeria. Following Nigeria’s independence from Britain, UBA was incorporated in 1961 to take over thebusiness of BFB. Today’s United Bank for Africa Plc (UBA) is the product of the merger of Nigeria’s third and fifth largest banks, namely the old UBA and the former Standard Trust Bank Plc, and a subsequent acquisition of the erstwhile Continental Trust Bank Limited (CTB). The union emerged as the first successful corporate combination in the history of Nigerian banking.

Operations Corporate Profile

Since its historical emergence from the merger of former Standard Trust Bank and UBA Plc, the UBA Group has positioned itself to be Nigeria’s dominant bank and a leading player in Africa continent. In 2000, Europe’s frontline Finance and Economy magazine, Euro money named UBA the Best Domestic Bank in Nigeria, in recognition of the bank’s exponential growth in the past couple of years and the comparatively higher inflow of investment from global finance players; and in 2007, Pan-African Newsmagazine also awarded UBA as the best bank in Africa the following year.

Born after the merger between Standard Trust Bank and old UBA, United Bank For Africa has more than 7 million customers with over 700 offices serving these people across 19 countries in Africa. With headquarters in Lagos, UBA has introduced a lot of services to their customers. Formerly viewed as an old generation bank, it has offered a lot to this generation given its solid financial foundation.  Presently the GMD/CEO is Kennedy Uzoka who took over from Philip Oduzua in August, 2016. In South East Nigeria, the U.B.A branches in Enugu and Ebonyi state are controlled by the Regional Office located at 10 Station Road, Enugu. That of Abia and Imo states is located at 5 Mbari Street, Owerri, Imo State while the Regional Office controlling Anambra state branches is locate at their Head Bridge branch, Onitsha, Anambra State.

1.10.4 Profile of Zenith Bank Plc.

Zenith Bank Plc. is a Nigerian based commercial bank engaged in provision of product and services to corporate, commercial and  individual customers. Its offerings include, savings, current, fixed deposit and domiciliary accounts, treasury and financial services, investment

banking, mortgage loans, trade financing, fund management, import and expert finance and cash liquidity management services to the wholesale and retail market, among others.

Zenith Bank Plc. was established in May, 1990 and started operations in July the same year as a commercial bank. It became a public limited company on July 17, 2004 and was enlisted o the Nigerian Stock Exchange on October 21, 2004, following a very successful Initial Public Offer (IPO). The bank currently has a customer base of over three million, an indication of the strength of Zenith brand. The bank’s head office is located at 87 Ajose Adeogun street, Victoria Island, Lagos, Nigeria with over 400 branches and business offices Nationwide.  Various types of credit card, internet and telephone banking as well as money transfer services are offered to customers. Zenith bank has its presence in the United Kingdom, Ghana, Sierra Leone and Gambia.

1.10.5 Profile of Guarantee Trust Bank

Guarantee Trust bank Plc. is a foremost Nigeria financial institution with vast business outlet spanning Anglophone West Africa and the United Kingdom. The bank presently has an asset base of over 1 trillion naira, shareholders fund of over 190 million naira and has over 5,000 employees in Nigeria, Gambia, Ghana, Liberia, Sierra Leone and the United Kingdom.  The bank’s operating style, staff conduct and service delivery model are built on core service principles aptly dubbed, The Orange Rules in line with the bank’s vibrant orange colour.

History

Guarantee Trust Bank Plc. was incorporated as a limited liability company, licensed to provide commercial and other banking services to the Nigerian public in 1990. The bank commenced operations in February 1991 and has since then grown to become one of the most respected and service focused banks in Nigeria. In September 1996, Guarantee Trust bank became a publicly quoted company and  won the  Nigerian Stock Exchange  merit  award that  same  year  and subsequently in the years 2000, 2003, 2005, 2006, 2007, 2008 and 2009.

In February 2002, the bank was granted a universal banking license and later appointed a settlement bank by the Central Bank in Nigeria (CBN) in 2003. After its second share offering in 2004, the bank successfully raised over 11 billion naira from Nigerian investors to expand its operations and favorably compete with other global financial institution. This development

ensured  the  bank  was  poised  to  meet  the  N25  billion  minimum capital  based  for  banks introduced for banks by CBN in 2005. Post consolidation; Guarantee Trust Bank Plc. made a strategic decision to actively pursue retail banking. A major rebranding exercise followed in June 2005 which saw the bank emerge with improved service offering , aggressive expansion and its vibrant Orange Colour.

The present Managing Director of the bank is Mr. Tayo Aderinokun. The bank has during his tenure won many awards, which include, the best ICT Support Bank of the Year, in 2009; the M.D won The Africa Banker of the Year Award by African Bankers Magazine, The CEO of the year by Thisday Newspaper and Sun man of the year award, all in 2009. The South East and South South branches of GT Bank are controlled by two Divisional Heads, one for its Small and Medium Scale Enterprise as well as its Retail Banking Unit, While the other controls their Commercial Banking Unit. While the Latter’s office is located at their Trans Amadi Industrial Layout branch, the former’s office is at Calabar Road, Calabar, Cross River State.

1.10.6 Profile of Union Bank of Nigeria

Union bank is a large commercial bank serving individuals, small and medium sized companies as well as large corporation and organization. In July 2009 it was rated the 556th largest bank in the world and rated the 14th largest bank in Africa. As as June 2012, the bank’s asset base was estimated at US $6.784 billion (Over 1 trillion naira). The shareholders equity at that time was estimated  at  US  $  1.22billion  (N188.4  billion).  The  bank  maintains  a  vast  network  of

interconnected branches in all Nigerian states. It has two wholly owned bank subsidiaries; one in Cotonou, Benin and another in London, United Kingdom. It also maintains a representative office in Johannesburg, South Africa.  Mr. Emeka Emuwa serves as the Managing Director and the Chief Executive Officer of the Bank. He has been at the helm of the bank since November

2012.

History

Union bank of Nigeria Plc. was established in 1917 as a colonial bank with its first branch in Lagos. In 1925 Barclays bank acquired the colonial bank, which resulted in the change of the bank name to Barclays bank (Dominion, Colonial and Oversee). Following the enactment of the Company Act in 1968 and the legal requirement for all foreign subsidiaries to be incorporated locally, Barclays Bank (DCO) in 1969 was incorporated as Barclays Bank of Nigeria Ltd. In

1971 the shares of the bank stock was listed with the Nigerian Stock Exchange; 8.33% of the bank shares were offered to Nigerians. The following year, the Federal Government of Nigeria acquired 51.67% ownership of the bank leaving Barclays Bank Plc. of London with 40% ownership. In 1979, the 40% ownership was sold to Nigerian individuals and businesses to comply with then recently enacted banking and investment laws. The bank then changed its name to Union bank of Nigeria Plc. to reflect its new ownership structure. In 1993, the Federal Government of Nigeria completely divested its ownership in the bank. Subsequently, Union Bank of Nigeria Plc. acquired the former Universal Trust Bank Plc. and Broad Bank Ltd. It also absorbed its former subsidiary, Union Merchant Bank Ltd.

Union bank branches in South East Nigeria is grouped into clusters, which each state having its own cluster and headed by a Group Head. While the cluster office for Abia state is at 17 Port Harcourt road, Aba; that of Imo state is at Douglas road, Anambra state has their, Enugu state is merged with Ebonyi state as a cluster under the same Group Head with their cluster office at Union Bank, Enugu Main Office, Okpara Avenue, Enugu state.

1.10.7 Profile of First City Monument Bank

First City Monument Bank (FCMB) is a large financial service provider in Nigeria, offering retail banking, corporate banking, and investment banking services to large corporations, small and medium enterprises, as well as individuals. As of December 2011, the bank’s total assets were valued at US $3.65 billion (NGN 593.3 billion), with shareholders’ equity of approximately US $ 772.2 million (NGN 117.4 billion).

History

The entity from which the bank is founded City Securities Limited was established in 1977. First City Monument Bank Ltd. was incorporated as a private limited liability company on 20

April 1982 and granted a banking license on August 11 1983. It was the first bank to be established  in  Nigeria  without  government  or  foreign  support.  On  15  July  2004,  FCMB changed its status from a private limited liability company to a public limited liability company and was listed on the Nigerian Stock Exchange (NSE) by introduction on 21 December 2004.

In November 2010, both Finbank and FCMB announced that FCMB has expressed interest in acquiring  Shareholding  and  become  the  strategic  investors  in  Finbank,  another  Nigeria

commercial bank that was undercapitalized. In February 2012, following regulatory approval, FCMB  acquired  100%  shareholding  and  began  integration  of  Finbank  and  its  existing operations. The bank has a number of active non-banking subsidiaries, which together with the bank form the First City Group. The bank maintains its headquarters in Lagos. As of July 2012, it maintained over 310 networked branches in over 36 states of the Federal Republic of Nigeria,

making it the 7th largest Nigerian Bank by branch network. FCMB had 133 branches before it

merged with Finbank, which had 180 branches. FCMB also maintains a branch in the United Kingdom and a representative office in the Republic of South Africa. Ladi Balogun serves as the  Group  Managing  Director  and  Chief Executive  Officer  of the  bank.  FCMB  has  two Regional offices   in South East Nigeria, one controlling Anambra, Enugu and Ebonyi state branches, located at FCMB Main office, Okpara Avenue, Enugu ; and the other controlling Abia-Imo Region located at Wetheral Road, Owerri, Imo State.

1.9.8 Profile of Fidelity Bank Plc.

Fidelity bank Plc. is a commercial bank in Nigeria. It is licensed as a commercial bank by the Central Bank of Nigeria (CBN). Fidelity Bank  Plc.  began operations  in 1988  as Fidelity Merchant Bank Ltd. By 1990 it had disguised itself as the fastest growing merchant bank in the country. It  converted to  a commercial bank. It  converted to  a commercial bank  in 1999, following the issuance of a commercial banking license by the CBN, the national banking regulator. The same year, the bank rebranded to Fidelity Bank Plc. It became a Universal bank in  February 2001,  with  a  license  to  offer  the  entire  spectrum of commercial,  consumer, corporate and investment banking services.

The current enlarged Fidelity bank is the result of the merger with the former FSB International Bank Plc. and Manny Bank Plc. (under Fidelity brand name) in December 2005. Fidelity bank is today ranked amongst the top 10 in the Nigerian banking industry with presence in all the 36 states of the federation as well as major cities and commercial centers in Nigeria. Fidelity continues to rank amongst Nigeria’s most capitalized banks with tier-one capital of nearly USD

1 billion. In 2011, the bank was ranked the 7th most capitalized bank in Nigeria, the 25th most

capitalized bank in Africa and the 567th  most capitalized bank in the world. As of December

2013, Fidelity Bank Plc. as a large financial service provider in Nigeria had a total asset estimated at over USD 6.318 billion (NGN: 1+ trillion) and shareholders’ equity in excess of

USD 1billion (NGN: 158 billion). At that time, the bank served 2.3 million customers at about

220 branches nationwide. Presently the bank’s Managing Director and Chief Executive Officer is Nnamdi Okonkwo.

1.9.9 Skye Bank Plc.

Skye Bank PLC has evolved into one of the top financial institutions in Nigeria, after its very seamless consolidation exercise in 2006.It operates as a group that provides facets of financial products and services powered by a purpose built technological framework that supports the service delivery process to customers. With a cumulative wealth of experience that spans over 50 years, Skye Bank is historically one of the oldest banks in Nigeria and West Africa. We are quoted on the Nigerian Stock Exchange with over 450,000 diverse shareholders with a shareholding structure that  puts no  more than 5%  in the  control of any one  individual or company.

Skye Bank;

     has shareholders’ fund in excess of N94 billion.

        has excellent customer service driven by passionate staff and supported by investments in world class Information Technology.

     has strong Corporate, Commercial, retail and investment banking.

        has over 220 online and real-time branches across Nigeria, with presence in Sierra Leone, The Gambia and Guinea Republic.

        is  a  major  in  player  in  Telecommunications,  Oil  &  Gas,  Power,  Manufacturing, Transportation and Infrastructural financing.

     has investments in subsidiary and associate companies in growth potential sectors of

Insurance, Capital Markets, Mortgage Finance and Trustee/Asset

     Management.

Management                                                                                                             The Executive Management is made up of a team of seasoned bankers all of whom have over many years of varied experience from diverse areas of banking and finance including:

     Strategic planning and management

     Corporate banking

     Project finance, development & Structured finance

     International trade finance

     Consumer & retail banking

     Audit & Accounting

     Treasury & Money market operations

The Board of the Bank is comprised of accomplished men and women with proven track record of integrity and service. The Board provides strategic policy planning and direction, and establishes risk management and internal control systems for the Bank, establish and ensure the integrity of the Bank’s information and accounting systems. The vision of Skye Bank is to continuously challenge ourselves to provide limitless possibilities to our customers, and our core values are integrity, mutual respect, accessibility and continuous learning.

Operations and Services

To date it operates out of over 260 branches and transaction centers across Nigeria serviced by over 6000 professional Bankers and business experts within a N1 Trillion ($7 Billion) balance sheet size. In addition we operate 600 ATM machines within our business premises and other strategic business locations spread across Nigeria. The Bank as part of its growth and expansion strategy began the process of exploring commercial and business opportunities in other African countries. The initial focus was on West African countries, with particular interest in the former English colonies. This primary focus  is  to  develop competencies in  countries with  similar business culture as Nigeria and hopefully, experiences and successes in these countries will be replicated in other countries in the region.

The following are the countries that are currently covered under the expansion project; Sierra Leone, The Gambia, Liberia, Sao  Tome and  Principe,  Angola, Congo (DRC), Guinea and Equatorial Guinea. Skye bank has two Regional Offices in SE Nigeria with one controlling Abia- Imo Region. The office is located at  1 Wetheral Road, Owerri, Imo State; while the other Regional Office is located at Okpara Avenue (Former Afribank Building), Enugu, Enugu State. This second Region controls Enugu, Anambra and Ebonyi State branches.

1.9.10 Access Bank Plc.

Access Bank Plc is a full service commercial Bank operating through a network of about 366 branches and service outlets located in major centers across Nigeria, Sub Saharan Africa and the United Kingdom. Listed on the Nigerian Stock Exchange in 1998, the Bank serves its various

markets through 4 business segments: Personal, Business, Commercial and Corporate & Investment banking.

The  Bank  has  over  830,000  shareholders  including  several  Nigerian  and  International Institutional Investors and has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last ten years ranking amongst Africa’s top 20 banks by total assets and capital in

2011. As part of its continued growth strategy,  Access Bank is  focused on mainstreaming sustainable  business  practices  into  its  operations.  The  Bank  strives  to  deliver  sustainable economic growth that is profitable, environmentally responsible and socially relevant.

History

Over the past 26 years, Access Bank Plc has transformed from an obscure Nigerian Bank into a world class African financial institution. Today, Access Bank is one of the five largest banks in Nigeria in terms of assets, loans, deposits and branch network; a feat which has been achieved through strong long-term approach to client solutions – providing committed and innovative advice. Access Bank has built its strength and success in corporate banking and is now taking that expertise and applying it to the personal and business banking platform it acquired from Nigeria’s International Commercial bank in 2012. The last two years have been spent integrating the business, investing in the infrastructure and strengthening the product offer.As part of its continued  growth strategy,  Access  Bank  is  focused  on  mainstreaming  sustainable  business practices into its operations. The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant.

The Beginning (1988 – 2001)

     December 19, 1988: Access Bank was issued a banking license

     February 8, 1989: Access Bank was incorporated as a privately owned commercial bank

     May 11, 1989: Access Bank commenced operations at its Burma Road, Apapa Head

Office

     March 24, 1998: Access Bank became a Public Limited Liability Company

     November 18, 1998: Access Bank listed on the Nigeria Stock Exchange

     February 5, 2001: Access Bank obtained a Universal Banking License from the Central

Bank of Nigeria.

The Change

In  March  2002,  the  Board  of  Directors  appointed  Aigboje  Aig-Imoukhuede as  Managing Director/Chief  Executive  Officer  and  Herbert  Wigwe  as  Deputy  Managing  Director.  The mandate was clear: “Reposition the bank as one of Nigeria’s leading financial institutions within a five year period (March 2002 – March 2007).” This task was perceived by many as impossible given the realities of the Bank at the time. Simultaneously, Mr. Gbenga Oyebode, who brought commendable and useful board experience gathered from some of Nigeria’s leading companies, including MTN Nigeria, Okomu Oil Palm Plc, was also  appointed to the Board. The new management  team subsequently created  a  transformational agenda  for  Access  Bank  which represented a departure from all that characterized the Bank in the past and became the road map for the conversion of the bank into a world class financial institution.

The impact of the transformation agenda was reflected in the first year. The bank grew its balance sheet by 100% and posted an impressive N1 billion profit before tax. The profit before tax figure was more than the cumulative profit made by the bank in the previous 12 years. This also  marked  the  beginning  of  what  would  be  a  six  year  record triple-digit  growth trend. Similarly, earnings per share had rebounded to 21 kobo from a negative 2 kobo position, leading to  a  declaration of a  5  kobo  dividend  to  shareholders  for  the  first  time  in  three  years.In recognition of the role of an enhanced capital structure, the Bank embarked on a capital raising exercise in July 2007. The exercise was an astounding success recording an over subscription of over 300%. The public offer comprised of an Over-The-Counter GDR placement of US$250 million which was similarly oversubscribed by 700%. The Bank’s shareholders’ fund today stands at over N240 billion with an expanded shareholder base of over 1,000,000 domestic and foreign investors.Access Bank is consistently seeking for ways to expand its service platform across the African continent. The bank currently operates through a network of about  366 branches across major cities and commercial centers in Nigeria, Gambia, Sierra Leone, Zambia, Rwanda and Democratic Republic of Congo.A Zonal head controls the SE branches of Access Bank with their Zonal office located at GardenAvenue, Enugu Abakaliki Express way, Enugu State, Nigeria.

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