Femi Otedola pays tribute to legendary banker Subomi Balogun

Nigerian billionaire Femi Otedola, the chairman of Geregu Power Plc, has penned a moving tribute to Subomi Balogun, the doyen of investment banking in Nigeria, who passed away in London last Friday at 89.

Balogun founded First City Merchant Bank, a company that later became FCMB Group, a publicly listed financial services conglomerate.

Otedola’s tribute to Balogun was shared on private social media channels and is reproduced here with permission from his media team:

Tribute to the Entrepreneurial Banker by Femi Otedola

Otunba M.O Balogun (CON) was a Father figure to me based on his longstanding friendship with my late Dad, Sir Michael, and also, his supportive disposition to entrepreneurs who are sincere and committed.

At the height of the global financial meltdown between 2007 and 2009, my businesses, especially the downstream oil and gas, had diesel stock which was bought for $800,000,000 ( Eight hundred million dollars) at $147 per barrel collapsed to the price of $33 per barrel. The business nose-dived and bankruptcy stared me in the face, raising my heart pulse and practically killing my sleep and pushing me on the edge of suicide.

All around me were financial institutions trying to recover their loans before what they thought will be inevitable crash of my businesses. I looked up and said, God Almighty, there is always Hope but where will it come from? It came through two truly distinguished top brass bankers who understood real entrepreneurship: Otunba M.O Balogun was one of them; the other Tayo Aderinokun, both now of blessed memories. Otunba took the view that before the global meltdown, my businesses were punctual with all debt services, leaving surplus funds in banks, he believed in me that with support across the meltdown I can bounce bank. He back-stopped his believe in me with his conviction that I will not risk the integrity of Sir Michael who was his close friend. On his weekend trips to Ijebu Ode, he started making brief detours to see Sir Michael at Epe. Although he did not discuss the matter of unpaid loans but he will tell me that “I saw your Dad at Epe on my way to Ijebu Ode”. I got the message : I must do everything possible to solve this problem so that I don’t get my Dad to know. Looking back I wonder whether other borrowers in similar situations came under pressure of pedigree. You may argue that pedigree is not collateral but trust me, it worked in my case as a strong force for good corporate behaviour.

I thank God, Otunba, Tayo and a few others that supported my bounce back, earning me a treasure trove of hard experiences.

When it started becoming clear that the worse is over, and that my bounce back is possible, even imminent, Otunba paid me an unscheduled visit, from his office, Primrose Tower, by Tinubu Square, to my office, AP, on Marina. I rode the lift to the ground floor with him, only to discover that he walked to my office. I had no choice than to walk him back to his office. During this walk he said to me “Femi, time is very crucial because before you know it you are old”; this simple, even obvious fact, has stuck to me and enhanced my time-consciousness.

I pray that the new generation of bankers will learn from their Doyen and more clearly understand the linkages between financial transmissions and the economy. Banks cannot thrive without genuine entrepreneurs and entrepreneurs cannot accelerate growth without leverage from supportive banks.

After the death of Sir Michael, I gravitated towards Otunba for counsels during trying situations or critical decisions. He usually will start by holding my hands and leading me to his kneelers for prayers.

In the whole process I became a mentee of Otunba and he encouraged his children to see me as their elder brother, friend and business associate.

I am indebted to him and pray for the peaceful repose of his great soul.

Femi Otedola