The Founder and current Chairman of Zenith Bank Plc, Jim
Ovia, over the weekend appeared on Bloomberg TV to promote his forthcoming book
titled ‘Africa Rise And Shine: How a Nigerian Entrepreneur from Humble
Beginnings Grew a Business to $16 billion’.
Speaking during the interview session, he reminisced about
his days of little beginnings, how he founded the tier 1 bank back in 1990 with
just N20 million, and how aspiring entrepreneurs can overcome the difficult business
environment in Nigeria.
According to him, Zenith Bank was founded during the
military era; a time when the business environment was tough and uncertain. But
he and his team managed to persevere. He, therefore, advised entrepreneurs to
learn to take advantage of opportunities and never be discouraged by the
challenges that they may face.
About his book
Speaking about the new book, Mr Ovia made reference to some
years ago when Nigeria and the entire African continent was categorised as a
hopeless and war-torn place. Fortunately, the narrative about Africa is
changing even as Westerners’ perspective continues to do same too, he said.
He cited the emergence of more democratically-elected
governments and the flourishing of African enterprises as some of the factors
responsible and hopes that his new book would help engender the positive
conversation.
He also used the opportunity to advise foreign investors not
to be discouraged by any negative report they may hear about Nigeria. This is
because the business environment is not as bad as it has been portrayed in some
quarters.
In his word:
“We started the business with N20 million at an exchange
rate of N5 to a dollar. So, we actually started the business with $4 million in
1990, and it has now blossomed. We now have a total asset base of $16 billion.
If you look at the arithmetic, there have been over 1000 per cent growth. You
can’t get that anywhere. Even in the best economies in the world, you are not
going to get that type of benefit.
“So, that is the kind of risk entrepreneurs, businesses or
international investors must take in Nigeria or any other African country reap
tremendously in terms of quantum growth in their business.” – Ovia
His perspective on the recent performances of stocks on the
NSE
During the course of the interview, Mr Ovia was asked
whether the recently-recorded lacklustre performance of stocks on the NSE was
due to political uncertainty and he said no.
According to him, the uninteresting performance is due to
the normalisation of interest rates in the USA and some other developed markets
in Europe and Asia. He explained that because the Nigerian bourse is not isolated,
it often mimics what obtains in the global arena. Moreover, the US is one of
the countries where Nigeria has a lot of international investors. Now, the
interest rate is rising in the country, and it is having ripple effects on the
Nigerian market.
What he thinks about non-performance loans (NPLs)
Jim Ovia also shared his opinion on the spate of
non-performing loans in the Nigerian banking sector. He said NPLs is a
challenge everywhere in the world, but “we don’t necessarily worry because it
depends on how you are able to hedge against some of those risks.”
About Jim Ovia
Jim Ovia is a seasoned industrialist and one of the most
successful and influential businessmen in Nigeria. He is also one of the
wealthiest Nigerians, with a net worth of about N122.1 billion.
However, despite his wealth and status, Mr Ovia tends to shy
away from the media; seldom granting interviews. It is interesting to see him
towing the same path as Tony Elumelu, Aliko Dangote and Femi Otedola who are a
lot more ‘media friendly’.
Note that asides founding Zenith Bank Plc, Mr Ovia is also
the Founder of Visa Communications Limited and also sits on the board of
several companies.
