My Open Letter to Our Outgone Directors – A Case for Good Corporate Governance (The DBN Case Study)

One of my mentors once said, "There are two types of pain you will encounter in life – The pain of discipline or the pain of regret!" This statement resonates not only in my personal life but also in the corporate setting. The cost of corporate governance is steep, but the gains, when achieved, are immense.

?At the Development Bank of Nigeria, corporate governance has been pivotal. To our outgone directors, this is an open letter appreciating the legacy role you have played in making DBN one of the foremost and finest DFIs in Nigeria.

?DBN stands out as the first and only wholesale development financial institution in Nigeria dedicated to tackling the financing challenges of Micro, Small, and Medium Enterprises (MSMEs). This singular focus sets DBN apart, positioning it as the cornerstone of MSME financing in Nigeria.

?For a deeper dive into DBN's performance at the end of FY2023, check out our integrated report for more information, however, here is a snapshot Bank’s performance at the end of FY2023

DBN truly excels in corporate governance, having a board and management team predominantly comprised of independent non-executive directors. This ensures that decisions are made with a high level of expertise, integrity and transparency. Furthermore, the observer status of the World Bank and EIB reinforces DBN's commitment to good governance

Let me be clear, it is a difficult task to attain world class corporate governance in most organizations, not least Nigerian-owned organizations. The reasons are obvious, ranging from fighting vested interests and strong influences be it personal or politically motivated. ?But DBN got this one right, having assembled one of the finest professionals under the leadership of Dr. Shehu Yahaya

?To Dr. Yahaya – Your exceptional leadership on the board of the Bank has left an indelible mark. Your ability to steer us towards financial sustainability and impact is truly admirable. I sat with you at many board and management retreats and your finesse in aligning differing views to achieve our goals has raised the bar in corporate board leadership. On a personal level, I am grateful for your trust and affirmation in my ability to lead those board and management retreat sessions.

Thank you, Dr. Yahaya.

?To Dir. Phillip Oduoza – Dir. Oduoza's profound expertise in the banking sector has been invaluable to the board. His exceptional leadership has significantly influenced the understanding of the financial services industry. As the inaugural chairman of the Board Finance Committee, he not only managed finance and treasury matters but also guided strategy execution. I had the privilege of presenting to his committee regularly and deeply appreciate the emphasis placed on aligning strategy with financial and operational performance. On a personal level, I am grateful for the compliment especially coming from someone of his caliber, when you insisted on having me make some recommendations for a head of strategy role with my profile as a yardstick. Thank you, Dir. Oduoza.

?To Director Clare Omatseye – Director Clare, the only female director on the board at the time, played a pivotal role in shaping board dynamics. Her perspective, as MD of a Nigerian owned business, was deemed the 'holy grail' for offering unique insights and innovative solutions for Nigerian MSMEs. Her success in managing a business in the Nigerian operating environment added significant value. Director Clare was a strong advocate for both MSMEs and specifically championed inclusion for female-owned businesses.

I express gratitude to Director Clare for her confidence in me and her consistent support during the retreat sessions I led. Her acknowledgment of my facilitation skills with the statement, "If I was a pastor and asked for all offerings, one could sell all his possessions and bring it hurriedly ?? ," reflects her recognition of my ability to passionately convince others during our sessions. Thank you, Director Clare, for your leadership and mentorship.

?To Director Andrew - Dir. Andrew Ali's experience in development finance as the former MD of the Africa Finance Corporation added immense value to our board. His remarkable mind and thought leadership skills brought unique perspectives and shaped our direction. I truly admired his ability to listen keenly, offer novel ideas, and guide us through crucial business decisions. Dir. Andrew, your brilliance has been invaluable in our success, and I'm grateful for your contributions.

?To Director Bello Maccido – Dr. Maccido, with his extensive board experience and expertise in the financial services industry, brought a unique blend of personality and professionalism. His refreshing interactions and outstanding ability to communicate messages with personality made a significant impact. Alongside Director Clare, he advocated for a laser-focused strategy on Northern inclusion, consistently putting it at the forefront of the Bank's business decisions.

Thank you, Dir. Maccido

?To Dr. Oladimeji Alo – Dr. Alo's impactful leadership as the committee chair of the board nomination and governance committee ensured the maintenance of strong people leadership at the highest level. His meticulous and calculated approach consistently yielded positive outcomes in decision-making processes. Within the board, Dr. Alo served as a crucial sounding board and the primary influencer for people strategy and talent management.

Thank you, Dr. Alo

?These outgoing directors have raised the bar and left a legacy for board leadership and corporate governance. We express our gratitude for their service to Nigeria.

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