Though a lawyer, I never thought of setting up law firm —Subomi Balogun

Iconic banker and quintessential philanthropist, Otunba Michael Subomi Balogun, is 88 years old today. In this interview, the FCMB founder speaks about the twists and turns that brought him to the pinnacle of his career. SULAIMON OLANREWAJU presents excerpts.

When you started out as a young entrepreneur many years ago, you had some ambitions. But your businesses seem to have gone beyond your expectations. How do you feel about this sir?

It makes me humble. As I have always said, God is my guide and consummate supporter. I started out as a stockbroker and with due appreciation to my God, I was the first Nigerian to single-handedly set up a stockbroking firm, just as I was also the first Nigerian to set up a merchant bank. I call it the grace of God.

Let me tell you one thing. A very well-known Nigerian who runs a financial institution, in fact, a conglomerate, once came to me and said, “Sir, you hardly speak for one or two minutes without referring to your God” and I smiled and said, you have said it all. Let me tell you a secret, all the businesses I have established, the good Lord had suggested them to me, and I have always been a pioneer.

Maybe you didn’t know that I only trained as a lawyer. Subsequently, the government of the then Western Region trained me in the British Parliament to be a parliamentary draftsman. When ultimately the government of Nigeria, in fact, the leader of the Central Bank, decided to set up a development bank, and brought in the World Bank as their partner, I was just in my place when a very good friend, Gamaliel Onosode (may his soul rest in peace), came to my house (I was then living on Glover Road, Ikoyi) and said “Mike, there’s this development bank being set up by the government and the World Bank. I am sure they will need a legal draftsman to be drafting agreements. Given your background and the fact that you seem to be multifaceted in your different interests, I think this could be a situation that will open your eyes to so many things.” He asked me to apply for that job, and I did.

When we were called for an interview, there were about 25 lawyers. I didn’t know what it was all about, but being a lawyer and draftsman, something just occurred to me.  I had a boss in the Federal Ministry of Justice, he called me and said, “I pray you get the job you are going for, because it will catapult you beyond your expectations to heights that you do not expect.” I said sir, it’s just a bank, but he said “no, it’s a development bank, and they have all sorts of branches.”

So many lawyers came for that interview and out of 25, I was picked. And for the life of me, I didn’t know anybody on the panel. The chairman who is now my mentor, Chief Chris Ogunbanjo, was so impressed about my performance that he telephoned a neighbour of his, Mr T. K Seiko, a lawyer, and said that “Your Lagos friend, the Lagos boy, Subomi is very brilliant – he was easily the best of the lawyers and we are going to recommend him.” So, the late T.K Seiko telephoned me and said, “Subomi, we have just been talking about you. Do you know Chris Ogunbanjo? He’s just been saying that you came for an interview and from the number of lawyers that attended, you’re simply the best, and they’re going to recommend you.”

So I asked if it was possible for him to introduce me to him. And he said I should come. So I drove in my Peugeot and got there. I met Chief Ogunbanjo, my God chosen mentor, and he said to me, “I didn’t know you’re an Ijebu, I thought you were a Lagos boy”, and I said, “No sir, I am an Ijebu.” He said, “Well, you came for an interview and I was the chairman of the panel, I believe we’re going to recommend you.” I said thank you sir, and left.

So, in my early thirties, I got a big job in a financial institution – the Nigerian Industrial Development Bank (NIDB). The institution was multifaceted and among many other things they were doing, they were also interested in what was happening in the capital market, capital issues, and stockbroking. It was a small subsidiary of the firm. And because of my divine gift of multi-tasking and being inquisitive, when I got there I was made lawyer and secretary. But I started trying to see what else I could be involved in, and the stock exchange excited me. Not long after that, the NIDB decided to send me to the World Bank in Washington and also to Wall Street in New York, and I felt it was an opening. There, I met distinguished lawyers who were heading stockbroking firms. I met investment bankers who were there.

When I returned from my training, I went to my bosses and said we should have an investment bank as our subsidiary to be raising money and doing other things. It took them some time to accept. I didn’t know what their reason was. Maybe they thought I was ambitious, but God has his ways of opening doors for me.

Suddenly, I was invited with another candidate, a chartered accountant and the first Nigerian woman to be trained as a chartered accountant, the late Mrs. Olutoyin Olakunri, and our bosses told us that we would both be doing something about Icon Securities.

This was a secondary job for me because I was sitting comfortably as the chief legal adviser and company secretary.  As I said, two of us were appointed as directors of Icon Securities, and to be alternating the leadership of that subsidiary. And so we worked for some time, and it was advised that Toyin being an accountant, should take the first shot.

A few months later, when I was given my own chance, I arrived in the office one day, and Toyin, who was very close to me, walked in and said, “Subomi, I am resigning.  I said why? She said I would be telling you. She had hardly left when my telephone rang, and my boss, Silas Daniel, who was the Group Managing Director, invited me to his office. I went and he said to me, “Mrs Olakunri is leaving us, and you have to take that position as the head of the stock-broking subsidiary.” I was so glad.

I virtually moved my things into Icon Securities Limited, a subsidiary of NIDB.

The chief executive of the Stock Exchange turned out to be my former student. So, he gave me a bit of thrust, and I was given the privilege of handling the public sale of UAC, which was the biggest conglomerate, the public sale of Nigerian Bottling Company and the public sale of a number of companies.

A time came when we were going to incorporate ourselves into banking. My boss said to me, “You can’t be given the job, you’re only a lawyer. I will redeploy you to your law.” Everybody knew me as the topmost man in the stock exchange. I was distressed that I wouldn’t be given the job. I ran around to everybody I knew in Lagos and some people in the chamber of commerce. And my boss said, “Well, we could make him a director and he would be strictly in charge of the stock exchange.”

Let me tell you something, as human beings, we wish for something but it is the good Lord that decides what will ultimately happen. I was eventually posted to that place because my boss had decided so, and I didn’t have any alternative. However, I wrote a petition to the federal government, but I didn’t get any answer.

So, one day I called my wife and told her I wanted to resign. We had just built my first prestigious house on Victoria Island, which is now Founder’s Place, a big branch of FCMB. The following day, I went to the office very early and straight to my boss’ secretary and said, “Is Oga in?”  She said, “Yes he’s in”. I said I wanted to see him. But the secretary said he was too busy. I called the secretary by her first name, I said, “Bisi, I want to see my boss this morning.” When she saw my mood, she was a bit scared; so she went in to inform my boss.

I went in and I said to my boss, “You made use of me to do this and do that, but you wouldn’t want me to head the subsidiary business. What you have not done for me, I am sure my God will do.” I dropped my resignation letter on his table and that was the end of my career in NIDB.

So I decided to set up a stock-broking firm. What was interesting was that my family had an altar or chapel for domestic prayers.  One evening after our prayers, my wife asked me if I heard what one of our sons said, and I said no. My wife told me that the boy wanted me to set up my own company. And I looked around and said, “Oh ye of little faith. How can a nine-year-old boy have an idea of me setting up a company?” So I went into the boy’s bedroom, he was already covering himself.

I said to him, “Babajide what did you tell your mummy?” He said, “Daddy, I pity you. Why don’t you set up your own bank?” So I went back to my altar and prayed. I said oh my God, please show me the way. As I prayed, I started singing a chorus in Yoruba (Oh my God show me the way, don’t let me get into a wrong thing, show me the way of what I will do well) which many Christians sing in churches, especially in my part of Nigeria. That was the simple prayer. And when I thought I had had enough, I rose up. Somehow, the tune of another song came into my mind: “You cannot fail; you cannot fail, because of Jesus you cannot fail”.

I was amazed, so I went straight to my study next to my bedroom. I didn’t say a word to my wife. I was the lawyer that drafted the memorandum and article of association of the company where they just refused me to head. So I took it, adapted it and made all the subsequent amendments.

The following morning, I told my wife I was going to set up a company, type this for me. My wife had started as a confidential secretary. She was worried. She said you have a good job, she even told my mother, but my mother said let’s keep praying for him.

Why I keep referring to God is that the good Lord has done wonderful things around me. I only trained as a lawyer, I keep on saying that.

I made up my mind that if they won’t make me a boss, I was leaving. So I incorporated my own company known as City Securities. And when many friends asked me who my partners were, I said my God.

So I set-up a stockbroking firm and gravitated to capital issues. I handled the sale of UAC, Daily Times, and many others. I was the one who first brought in Coca Cola into the market. Then during the Nigerian Indigenisation Programme, there were four oil marketing companies. I handled three of them – Mobil, Texaco, and Total, except BP. Everybody was wondering what was happening, and quite frankly, it has all been a miracle to me. And that’s why I have devoted my life to continue thanking my God and praising him.

Most of the things that have happened to me were divinely ordered, and for the rest of my life, even in eternity, I will continue to appreciate my God.

City Securities was born, and when I had succeeded in selling everybody’s shares, I said to myself why don’t I set up a bank? I spoke to two people at the Central Bank of Nigeria (CBN) but one of the two people said I was crazy. Anyway, God was projecting me and I was going. So I applied for a banking licence, single-handedly. And my licence was refused initially.

But you eventually got the license…

Yes. By sheer coincidence, the then vice president of the country, Dr. Alex Ekwueme, had been my friend for a long time. We were neighbours in Apapa, and when he went away during the Biafran war, I took care of his house.

So one day (I will say it was a divine brainwave), I told my wife that we would go to church but we were not going to sit together.  I said I would sit in the front and she would sit behind me. I said to her, “When the Provost is bringing out the Vice President, I am going to do something, and you’re going to follow suit. I will pull the garment of Alex and you too will pull the garment of his wife, Beatrice.”  My wife said, “Ah!”

We went and when the service ended, the Provost was coming with the Vice President, and he nodded at me as someone familiar. I went close to him and my wife did the same to Beatrice, and the security rushed in. The vice president told his security people to move on. So I said, “Mr Vice President, where is my licence? He said, “let’s get out of the church.”

When we got out of the church, I said again, “Mr Vice President, where is my banking licence?” He said, “Okay, come and see me in Dodan Barracks.” He then told his handlers to give me his telephone number and other things. I telephoned and he said, “On Thursday, we would be having an executive committee meeting and I will be presiding over the meeting because President Shehu Shagari won’t be there.”

At about 3 ‘0 clock, a young man I knew very well, the son of Akintola, a former Premier of the Western Region, Yomi Akintola, who had become a minister, telephoned me and said, “Big brother, the vice president has asked me to tell you that your licence has been approved and everything would be okay.” So I shouted and everybody in the office was asking what was happening.

Already, I had recruited some people in readiness by faith that my God would do it. Everybody was jubilant in the office. About two to three months later, we were looking for the capital. I was running City Securities, and with my own money, I was able to subscribe to N2 million naira capital.

While still running City Securities, I built Primrose House. I was a tenant in Mandilas, but I prayed, God please let me have my own office by the time I would be leaving here, and God answered my prayers.

By the time I applied for the banking licence, I already had my own building; a 10-storey. It was a miracle, and as I have said to people who have asked me, the whole thing was divinely done.

So, we set up the bank (First City Merchant Bank) and I started recruiting bright young men. Initially, I was the only one who put my money down. I became the first Nigerian to single-handedly set up a merchant bank.

After some time, and with the indigenisation programme implemented, I said I wouldn’t just want to remain an investment banker. I started talking to the people in Central Bank, and they said they would give us one universal licence which would allow us to expand the scope of our operations and services. God also did it, and we became a universal bank, doing commercial banking and other things. I just can’t explain it, the whole thing is inexplicable. It is the amazing grace of the Almighty God, my father and our maker. I am never short of words in calling God names in appreciation of Him for starting it for us and it has been going well.

When we became a universal bank, my strength was still in what we were doing as an investment bank. So I sent myself to courses and also attracted top people. Many of them are still around and in top places.  So I look at these things, I say who am I without my maker, the omnipotent, the omniscient, the good Lord, the master of everything, the master, the Lord and father.

That’s the long explanation about my journey in life. The height I have attained was never an overnight flight. But in all, it was my God, the omnipotent, the omniscient, the great and mighty God. And in addition to whatever I have been before, it encourages me to serve my God better.

And interestingly enough, while I was doing all this, my people in Ijebu were seeing me. We have something awesome in Ijebu; an individual would be picked as the Head of the Christians. When the man who was occupying that position, Chief Timothy Odutola, died, to my surprise, I was invited to take over.  I said, “Ah! not me please, my mother is even a Muslim.” But everybody encouraged me and I was made the ‘Asiwaju’ (Head) of the Christian Community, not just in Anglican Church, but all the denominations. Initially, it covered all the Ijebus up to Ikorodu. But later on, the other groups had their own Asiwajus. So I have dedicated my life to God. And since Iwas not looking for anything, except what in His grace He will give me, I am spending the rest of my life thanking my God, serving Him, and being seen to be serving Him and also going out to be good to my neighbours.

Did you ever consider setting up a law firm as a lawyer?

Not at all. I didn’t think of setting up a law firm and I never practised. My path was ordered by God into what He wanted me to do. So, all I need is to continue thanking my God.

You had a friend who went into politics and eventually became vice president. You also related well with people in government. Why were you not attracted to politics?

I think I was being divinely propelled. I was close to Baba Awolowo, and to many people in government, including the attorney-general who opposed my licence, because he said in their council meeting, if you give that man licence, an election is coming, he’s going to support Awolowo. I have written all these in my book. God knows the best.

When you established the bank, were there challenges that made you feel you might not succeed?

Hmm! I have a childish habit. Any time I want to do something. I would write it down and put it inside the Bible in my altar; I would be asking God just like I said when I wanted to start everything; my God show me the way.  Don’t let me make wrong choices. I would just throw myself into the arms of my maker and tell Him to help me. My whole life is a wonder to me. And I am saying it again, I only had a degree in law, but the ideas were just coming.

When you talk of FCMB, I was the first to conceive the idea of Group structure. We had what I call a financial supermarket. I had a stockbroking company, a capital issues company and then we set up the bank itself. And after that, I had an asset management company, pension management, etc. All the companies, I call them First City Group, and recently we changed the name to FCMB Group.

To be honest with you, I admit that I am not the one doing all this, the ideas just keep coming to me and I don’t understand.

So I am spending the rest of my life just thanking my God and doing anything that the good Lord will guide me do.

As regard challenges, I will say no one is greater than God. Once you embrace your God, whatever challenges you have would be subsumed in the divine achievements. For example, as I said earlier on, when we wanted a licence, someone said don’t give it to him, he is a friend of Awolowo. But I prefer talking about what God has done for me rather than telling the challenges. I always focus on my goals, not my challenges.

And at 88, I am not tired. I am still wearing suits like you young men, because I believe the good Lord still has a lot of work to give me to do. So I have dedicated my life to serving Him.

As a pioneer in this industry, given what the economy is like now.  What do you think can be done?

I try not to talk about what somebody is doing right or wrong. Rather, I spend my quality time praying for this country. I tell you something, whenever I kneel down to pray, I, first of all, thank my God. Then I thank Him for what He’s done for my wife, my family, my children, the FCMB Group, then to my neighbours, and then ask God to bless Nigeria. That’s the routine I go through every day, I don’t dabble into that because ultimately, God does what he wants to do.

In fact, when I was young, I remember I wrote a paper which I gave to General Ibrahim Babangida about whether to devalue the naira or not. I did it because it was like I received a vision. Today, I can only pray that it shall be well with the country because this country belongs to all of us.