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  • Bode Agusto: A visionary financial strategist gone

    Bode Agusto: A visionary financial strategist gone

    • By Tokunbo Abiru

    The passing of Mr. Mubasheer Olabode Agusto, affectionately known as Bode Agusto, on October 19, 2023, signifies a profound loss for Nigeria and all of us privileged to have shared close professional ties with him. A true gentleman and an exceptional professional, Bode significantly influenced the careers of numerous bank executives and corporate leaders. His mentorship was invaluable, providing guidance and insight that shaped our professional paths.

    My association with Bode Agusto traces back to my formative years in the 1991 batch at the Guaranty Trust Bank training school, where Bode, in his capacity as a partner at PriceWaterHouseCoopers (PwC), played a pivotal role in shaping our professional trajectories. His insights and expertise from that period were foundational for many, including myself.

    Upon my appointment as the inaugural Managing Director of Polaris Bank, Bode’s unwavering support became evident. With a keen interest in the bank’s success, he generously provided invaluable financial counsel on a pro bono basis. His comprehensive expertise across various sectors, combined with his ability to navigate intricate financial landscapes, were instrumental during my tenure.

    As a Senator of the Federal Republic of Nigeria, my interactions with Bode Agusto revealed his deep commitment to national progress. He consistently provided professional insights into government operations and developmental economics. He played a pivotal role in shaping policies and macro-economic strategies that underpinned President Bola Ahmed Tinubu’s administration. His dedication always leaned towards Nigeria’s betterment, putting collective progress over personal recognition.

    Born on September 14, 1955, Bode Agusto’s academic and professional achievements were nothing short of remarkable. His academic journey took him from the University of Lagos to esteemed institutions like the University of Pennsylvania and the Massachusetts Institute of Technology. But beyond his academic accomplishments, Bode’s legacy lay in his mentorship. He was ever-eager to share his wealth of knowledge, fostering a culture of continuous learning and upholding the highest standards of professionalism.

    His visionary spirit led him to establish Agusto & Co in 1992, Nigeria’s premier credit rating agency, after illustrious stints at PwC and Citibank Nigeria. He further served the nation under President Olusegun Obasanjo’s administration, revolutionising fiscal management, achieving balanced budgets annually, and securing significant debt relief for Nigeria.

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    Beyond his professional accolades, Bode was renowned for his philanthropy, using his stature to benefit others. His commitment to societal upliftment underscored his belief in the responsibilities that accompany success.

    Bode Agusto will be remembered as a distinguished accountant, economist, and financial strategist whose contributions have set industry benchmarks. As we reflect on his impactful life, we recognise him as a beacon of excellence in accounting, finance, banking, and economic management, whose influence resonated well beyond Nigeria’s borders.

    In our sorrow, we also celebrate a life dedicated to service — to both God and humanity. Bode Agusto’s memory will forever inspire all who had the privilege of knowing him.

    May his lasting contributions in accounting, finance, banking, and economic management continue to illuminate future generations.

    Farewell, dear Egbon—Mubasheer Olabode Agusto.

    •Abiru is Chairman, Senate Committee on Banking, Insurance, and other Financial Institutions

  • Fitch, Agusto affirm BoI’s positive outlook

    Rating agencies, Fitch Ratings and Agusto &Co have revised the Bank of Industry’s (Bol) rating.

    While Agusto  moved BoI ratings from Aa- to Aa, Fitch retained the bank’s Long-Term issuer Default Ratings (IDR) of AA+ (nga).

    According to Agusto&Co, the Aa assigned rating reflects the development finance institution’s very good financial condition and strong capacity to repay obligations on a timely basis.

    Indeed, Agusto noted that the rating recognises BOI’s good capitalisation levels, acceptable asset quality, good liquidity profile and low cost funding base during the review period of 2018.

    On its part, Fitch noted that BoI’s ratings are sensitive to any change in the state’s ability to support the bank, as indicated by a downgrade of Nigeria’s sovereign rating, adding that the bank’s strong capital ratios are prudent given the DFI’s sensitivity to the volatile economic environment.

    Though the rating agencies affirmed the susceptibility of the bank’s fragility in the macroeconomic environment, particularly as it targets risky economic sectors; they noted that safety measures such as bank guarantees, treasury bills, and Federal Government bonds provided by large corporates mitigate risks to an extent.

    With the bank’s non-performing loan (NPL) ratio standing at 4.9 per cent at end of first half 2018, the rating agencies noted that there are expectations that the volume of delinquent loans to moderate slightly in the near term given some remedial actions taken on the affected impaired loans.

    On the bank’s outlook, Agusto said: “While the Bank’s funding base has grown significantly, its loan portfolio has not shown that level of growth. This is as a result of major challenges the Bank faces, such as insufficient capacity to reach micro, small and medium scale business across the country and the dearth of bankable projects.

    “To extend its reach, BOI is partnering with commercial and microfinance banks which have the branch network and staff strength to penetrate the market nationwide.

    However, insufficient bankable projects remain a drag on the Bank’s projected performance. This is primarily due to the weak macroeconomic and operating environment which deters businesses from thriving.

    “Going forward, we expect the Bank’s performance to be upheld by the support of its two largest shareholders which drives the lending business, funding from multilateral finance organisations and an experienced management team overseeing the daily operations of the Bank”.

     

     

  • Agusto assigns Bbb-rating to Anchor Insurance

    The rating assigned to Anchor Insurance Limited (‘Anchor’ or ‘the Insurer’) reflects its good profitability, decent investment management, good liquidity, moderate exposure to underwriting risks as well as an experienced management team. However, the rating is constrained by the Insurer’s low profitability, elevated underwriting expenses, and the dampening effects of macroeconomic uncertainties that have impacted the Insurer’s financial performance.

    The Insurance industry’s performance has remained constrained by weak macroeconomic conditions, a reduction in the purchasing power of consumers and the sustained apathy for insurance, amongst others. Given the Industry’s low penetration ratio of approximately 0.5% in Nigeria, a strong focus on innovation around products and distribution channels is required in addition to creating awareness amongst consumers. These will collectively serve as key growth drivers for the industry in the short to medium term.

    The recent suspension of the implementation of the Tier based minimum solvency capital (TBSMC) by NAICOM provides a lifeline for industry operators, which we expect should give operators time to finalise capital raising plans and build capacity to underwrite risks. Nonetheless, the current weak investor sentiments towards Nigeria and the emerging political risks stemming from ongoing election campaigns may impede capital raising plans in the short term.

  • Agusto leads economic team

    The Lagos State government yesterday created a 12-member Economic Advisory Committee, headed by renowned accountant and financial expert, Dr Bode Agusto.

     The committee will strive to improve the business environment and advance  economic development.

    A statement by the Secretary to the State Government, Tunji Bello, said: “The Economic Advisory Team is expected to bring an independent perspective to economic and business issues and advise government; provide an effective mechanism for engaging the private sector on matters relating to the state’s economic development and provide advice and strategic direction.”

    Other members are Kehinde Durosinmi-Etti, Kenneth Igbokwe, Mrs. Nimi Akinkugbe, Mrs. Adenike Ogunlana, Dr Laolu Mudashiru, Mrs. Omobola Johnson, Moruf Oseni and Mrs. Yetunde Akinluyi (Secretary).

    The government would be represented by some commissioners Akinyemi Ashade (Finance), Olawale Oluwo (Energy and Mineral Resources) and Rotimi Ogunleye (Commerce and Industry and Cooperatives).

     

  • Agusto, Omatseye, others on LASU council

    •UNIOSUN board inaugurated

    Lagos State Governor Babatunde Fashola yesterday appointed Mr. Olabode Agusto as the Chairman and Pro-Chancellor of the newly constituted Governing Council of the Lagos State University (LASU).

    Members are Mrs. Ibukun Awosika, Mr. Leo Ekeh, Dr. Leke Pitan, Mr. Yomi Hotonu, Prof. Shafideen Amuwo, Mrs. Fatima Wali-Abdurrahaman, Mr. Sam Omatseye, Mr. Olaseinde Karim, Mr. Adewunmi Ogunsanya and Mr. Jide Adesoye.

    The governor also approved the replacement of three members of the Governing Council of the Adeniran Ogunsanya College of Education (AOCOED), whose tenure recently expired.

    Those appointed to replace them are Prince Abiodun Ogunleye, Mrs. Victoria Peregrino and Mrs. Oludapo Odunlami.

    Prof. Tunde Samuel has been appointed Chairman of the Board of the CG-EKO LLP, a Public-Private Partnership venture between the Coscharis Group and the Lagos State Government.

    Fashola urged the appointees to be productive and thanked former members of the LASU and AOCOED Governing Councils for their services.

    Also yesterday, Osun State Governor Rauf Aregbesola inaugurated the seven-man Governing Council of the Osun State University (UNIOSUN).

    A law scholar, Prof. Gabriel Olawoyin, is the chairman.

    Members are Prof. Akinyinka Omigbodun; Prof. Gabriel Adegboyega; Prof. Obafemi Ajibola; Dr. Abeke Omotosho; Sir Demola Aladekomo and Mr. Remi Olowude.

    At the ceremony, which was held in his office, Aregbesola urged the council to reposition the institution for better performance.

    He said the appointments should not be construed as a reward or patronage, but a call to an arduous task.

    Aregbesola said: “I want a marked difference in philosophy, curriculum, societal relevance and funding of this university. There must be a paradigm shift in the philosophy of a university as an elite recruitment centre, whose only noticeable value lies in the social etiquette acquired in its campus and the certificates of its graduates.

    “I want a university that will equip its graduates with specific skills, even in unusual areas, such as the liberal arts, social sciences and the core sciences. This university should be a pathfinder for the society.”

    The governor said the university must refocus to address societal problems.

    Olawoyin said: “It is common knowledge that the great academic institutions of higher learning in the world are largely funded by public-spirited individuals, foundations and corporate organisations attracted to do so by virtue of their belief in the vision, mission, aspiration and direction of such institutions.”