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I’m in relentless pursuit of excellence – Former World Bank Treasurer, Oteh

Arunma Oteh

Arunma Oteh is a former Vice President and the first black Treasurer of the World Bank. She is also a former Director-General of the Securities and Exchange Commission, Nigeria. She tells BLESSING ENENAITE about her career, achievements and other issues

What inspired you to become an economist?

I have often explained that I started my career at the dining table after dinner, when my dad made me read annual reports of companies listed on the Nigerian Exchange (formerly Nigerian Group Exchange), that he and my mother had invested in to complement their income. They were civil servants and did not earn very much. Businesses always talked about the macroeconomic and microeconomic context of their annual performance. So, I started learning economic concepts from an early age. I, however, ended up studying Computer Science for my first degree, as I was certain that I wanted to become an inventor.

While I taught a first year Computer Science course while observing the National Youth Service Corps scheme at the University of Benin, Edo State, in 1984/1985, my first job was with Centre Point Investment Limited, where I continued to hone my understanding of economics and finance. Since my Master’s degree in Business Administration at the Harvard Business School, United States of America, most of my work has focused on economics and finance.

My assessment is that being an economist is what I do every day, as I have to keep up with the macroeconomic environment in all of my work. Perhaps, we are all economists since our lives are impacted by economics.

You worked at the African Development Bank for 17 years, having risen to the position of the Group Vice-President, Corporate Services. What informed your decision to stay that long at the institution, and did you ever feel the need to change your job?

I had actually not expected to spend 17 years at the African Development Bank. I had planned to stay there for two years and return to Nigeria. Thereafter, I planned to run a business, or be in the leadership team of a large corporation or bank.

During my first few weeks at AfDB, a farewell party was organised for a former Vice President of the bank from Nigeria.  I noted his comment that he had come to AfDB to stay for two years but ended up spending 29 years there.  At the time, I was certain that I would keep to my plans of spending only two years there. Meanwhile, many other colleagues, including Nigerians, had spent their entire careers at the AfDB or at the World Bank and other multilateral development banks.  From my experience, the reasons are as follows.

First is the laudable mission of multilateral development banks, which is notably to assist countries by providing knowledge and financial support to the public and private sectors in the countries they serve.

Second, the quality and variety of work that one is exposed to. In my own case, in the 17 years that I was at the AfDB, I worked in three different areas of the bank— Operations (as a financial analyst covering West and North African countries); Finance (as a corporate finance officer, investment officer, division manager of the trading room and investments, and treasurer); and as Group Vice President, Corporate Services, which means I was responsible for human resources, information technology, administration, procurement, corporate real estate and language services.  In each case, I competed for the position with others within the institution and outside the institution.

One had the best of both worlds of remaining in an organisation that complied with best practice as required by its shareholders. In the case of AfDB, there are over 80 member countries, with Nigeria having the highest shareholding. In the case of the World Bank, there are 189 member countries, with the US having the highest shareholding.

My work took me to most African countries, and other continents, including Asia, Europe, and the Americas.

In 1992, which was my first year at AfDB, I covered Egypt, Ghana, Nigeria and Sudan. I was able to learn from the best and the brightest about the project cycle.

I strengthened my knowledge about what drives the feasibility of a project and in calculating internal rate of return, net present value and economic rate of return. I understood the importance of countries being in the driver’s seat through the multi-year country strategy paper. As a member of the funding team in Treasury, we raised funds in fixed income markets all over the world. I visited many Asian countries and had many fund stories, including presenting Africa and AfDB to retail investors, institutional investors and the media. I saw firsthand how very passionate the Japanese were about being part of supporting African countries to realise their potential.

I fondly remember working on successful Samurai and Uridashi transactions. (According to Investopedia, a Samurai bond is a yen-denominated bond issued in Tokyo by a non-Japanese company but subject to Japanese regulations; while Wikipedia defines Uridashi bond as a secondary offering of bonds outside Japan).

I remember being part of the team that did the first South African Rand-denominated uridashi.  As an investment officer, I remember investing AfDB liquidity in US dollars and several of the predecessors to Euros- Deutsche Marks, French Francs and Spanish Pesetas. I remember fondly achieving my commitment, doing my interviews for the position of Treasurer, committing to restoring all the credit ratings of the AfDB to the highest rating of ‘AAA’.

This allowed the AfDB and all other development banks to raise money cheaply from the capital markets and lend them to African countries at better rates than they can get elsewhere.

Another reason many spend the whole of your careers at the bank was the quality and calibre of those who worked at such development banks. Development banks recruit the best and the brightest from their member countries (shareholders). I am familiar with many cultures, because of the diversity of colleagues that I have worked with throughout my career.

As the Director-General of the Securities and Exchange Commission, Nigeria, what were some of your notable achievements and challenges, and how did you overcome them?

Our primary challenge was to restore confidence in the Nigerian capital market through a series of bold reforms that were anchored on restoring investor confidence. We had our markets peer reviewed by regulators from a world-class capital market. We strengthened our human capital and received support from bilateral and multilateral agencies to build new markets.  There were several feats that my team and I achieved with the support of the leadership of the country, and support of other government agencies, notably, the Central Bank of the Nigeria, Ministry of Finance and Ministry of Agriculture.

Market participants, including the stock exchange, stock brokers, investment banks, and registrars, were also instrumental to our success. Also important was the articulation of a vision, by SEC Nigeria, supported by the Ministry of Finance of what world-class capital markets mean for Nigeria, after the global financial crisis.

The key elements of this vision were ensuring investor confidence, deepening and broadening product offerings beyond a predominantly equities market, and enhancing the liquidity and efficiency of the markets. This vision was prepared by a panel of experts, and became our roadmap for restoring the Nigerian capital market and making it world class. We also had a market-wide visioning process towards the end of my term as Director-General, SEC Nigeria. That led to a market-wide development of a 10-year capital market master plan, which is still being implemented by the SEC.

I joined the SEC Nigeria in January 2010, after the devastating global financial crisis. Nigeria was affected in several ways, including the impact of the global economy on the Nigerian economy, the sudden exit of international investors because of the steep decline in global capital markets, and the unfortunate market abuses that were characteristic of the Nigeria capital market in 2008.

As part of showcasing that the Nigerian capital markets would be guided by global best practice, we adopted the International Financial Reporting Standard for all publicly-listed companies. We also updated the corporate governance code to reflect recent developments.

The stock market, which had declined by 70 per cent, doubled in market capitalisation within a year. The high concentration of banking stock was reduced.  We strengthened the mutual fund market, introduced exchange-traded funds, and built a corporate-fixed income market.

As stock exchanges are visible symbols of any capital market, we revamped the governance and refreshed the leadership. They have continued to build a globally respected exchange that is now a member of the World Federation of Exchanges. We also laid the foundation for the demutualisation of the Nigerian Exchange.

Also, we approved a widely acclaimed over-the-counter market, which other markets sought to emulate. I am pleased that FMDQ (a SEC-registered capital market holding company) has grown to provide a breath of innovative products. It is also a leader in enabling Nigeria make progress on sustainability.

We implemented innovative financial literacy programmes, leveraging Nigeria’s vibrant movie industry (Nollywood), and advocacy at the grassroots level, through our health and wealth days in markets. We also revamped our students’ financial literacy programmes in secondary schools and universities, and introduced programmes for financial journalists and other stakeholders.  We also had programmes to draw attention to the importance of integrity in building a world class capital market that is a preferred destination for domestic and international investors.

You were the first black treasurer of the World Bank. Did you feel special with this feat and what was your experience in that position?

The role of Treasurer, World Bank, is one of the most prestigious finance roles globally, not only because of the volume and level of sophistication of transactions, but also because of the laudable mission of the World Bank, and the fact that it is owned by most countries of the world and operates everywhere.  When I was the treasurer, I led a team that managed an asset portfolio of $200bn for the World Bank Group and 65 central banks, and other public sector clients.  We raised $50bn in 20 currencies annually. I was also responsible for an extensive public sector financial advisory business and back office operations, administering payments of over $7trn annually. In response to the Ebola pandemic that Nigeria managed to avoid but unfortunately led to deaths in Guinea, Liberia and Sierra Leone, we worked to develop the first pandemic bond, so that the international community would respond faster and avert unwinding development gains. We also introduced the first ever blockchain bond and a variety of transactions to support the Sustainable Development Goals.

However, I was not intentional about occupying any position. I feel I was lucky and being religious, I always consulted God first, for guidance, in any choice that I made.  My family members have always been my greatest cheerleaders.  I was driven by the upbringing my parents gave me, because they instilled in me an extraordinary work ethic and a relentless pursuit of excellence in whatever I do. I was also fortunate to have supervisors who supported my career progression and encouraged me to compete for roles even when I was not sure that I was ready. I also liked reading biographies, and I learnt a lot from the experience of others.

Can you share some of the moments you felt proud being a Nigerian, and conversely, the moments you felt embarrassed being a Nigerian?

I am always proud of being of Nigerian because Nigerians, at home and abroad, are hard-working, fun-loving, spiritual, compassionate and courageous. It is also a country where people seek to excel, and being populated by over 200 million people, very competitive. There are a few bad eggs that have cast the nation in bad light because of wrongdoing and corrupt practices. I am disappointed that despite being very well endowed with natural resources and hard-working, Nigeria has 133 million people in multidimensional poverty— the highest in the world. It is sad that a country that has this level of poverty allows $700m worth of crude oil to be stolen monthly.  I understand that Nigerian oil exports are at their lowest level in 25 years because of oil theft.

Despite having Africa’s highest population, the country’s electricity consumption is less than four per cent of that of South Africa. Meanwhile, Ghana consumes twice as much, and Tunisia, 10 times as much.  This is a nation endowed with a diversity of sustainable resources, including hydro, wind and solar. I am disappointed that despite the value that Nigerians place on education, the country has over 11 million children, between the ages of 6 and 15, that are out of school during those important formative years.  This is also over eight per cent of the global figure, and ranks as having the highest out-of-school children, alongside India and Pakistan.

Nigeria ranks 163rd in the United Nations Human Development Index and life expectancy is 52.7 years. That means I and many others who are over 53 years are living on borrowed time. I am embarrassed by the waste in a country that is using most of its revenues to service debt; as well as the fact that the annual budget for education and health are one of the lowest in the world. No country is able to grow sustainably without investing in its people. Leadership is below par and continues to deteriorate. Execution and institutional capacity is weak as evidenced by the recently concluded presidential election.

This, notwithstanding, Nigeria’s financial technology industry has been leading the way in Africa, considering the number of unicorns founded by Nigerians.  Nigerians are doing very well in various fields, especially in fashion and entertainment. Last month, Burna Boy, Rema and Tems took centre stage at the US National Basketball Association all-star game, with Giannis Antetokounmpo (Greek of Nigerian origin) as one of the stars that played alongside LeBron James. This was on the back of Tems’ Oscar nomination for her work on Rihanna’s Lift Me Up, a song from Black Panther’s Wakanda Forever movie. She also recently won her first Grammy award. Kizz Daniel’s song, Buga, is also listed as one of top five afrobeats songs in the world.

You are an inspiration to many women in Africa and beyond, having made it to Power List’s 2020 Top 100 people in the United Kingdom of African heritage and Forbes Africa’s 50 Most Influential African Women in March 2020, among other notable achievements. Have you ever thought about a mentorship programme for people who desire to attain similar heights as you?

I have always had a mentorship programme, as I believe that mentorship is a way to give back and contribute to preparing future generation of leaders. When I look back at my life, I can divide it into three stages— learning, leadership and legacy. While I am still learning and leading, I am focusing more of my time now on leaving a lasting legacy. That is why for the last four years, I have been at University of Oxford, United Kingdom, helping to build the next generation of leaders globally. There is also a leadership deficit globally. It is the reason that I serve on the Board of Trustees of the Prince’s Trust International, a charity founded by King Charles III to focus on supporting youth in commonwealth countries. Our programmes support young people with education, employment and enterprise, so they can thrive and unleash their potential. It is also why I serve as Chairperson of the Royal African Society, a charity founded over 120 years ago to amplify African voices globally. Our work covers arts, culture, business and politics. We also have brands, such as Africa Arguments— a web-based platform that allows journalists and other writers to share their perspectives with more than 1.5 million people globally. Such work is more important today as the world needs to have Africa at the table and to take account of Africa’s perspectives as it tackles challenges such as the geopolitical tensions, poverty and the climate crisis.

My mentors are the best and the brightest from all over the world, which means I am able to learn from them as well. They work with me on a variety of projects. I am currently working with one of them on a more formal mentorship programme that operates at scale and is efficient, so more people can access it.

I was also recently named one of Forbes top 50 over 50 women, in the Europe, Middle East and Africa category.

As a beautiful woman, how do you maintain your good looks?

Thank you for your compliments about my looks. I don’t do much, and it is an area that I commit to doing something about every year. Wait until you meet my older sister, who invests more in maintaining her phenomenal looks. She is careful about what she eats and starts her day by walking for at least one hour. I tease her and tell her that when I get as old as I her, I will do the same, so that I can enjoy her beautiful looks.

What informs your style?

My style is classic, and most people have observed I have had the same style for about six years. A friend described it as ‘simple, yet fashion-forward’.  I also like to be comfortable and be able to wear my work outfit to early evening events. I am also very busy, so another feature of my style is the ease of men’s classic wear— a suit, shirt, tie and classic shoes. This allows me to focus on my busy schedule and save time that I can deploy to my work.

What are your hobbies?

I have several hobbies, including dancing, sports and reading. I am fascinated by the immense interest in soccer, and the fact that many Nigerians have British league teams that they support. I am therefore now learning about the difference between Arsenal, Chelsea, Liverpool United and Manchester United. I am also learning about the European league and follow Real Madrid, Barcelona and Paris St. Germaine. I am hoping that one day, Nigeria’s leagues will be followed by Nigerians and non-Nigerians the way the British and European leagues are followed by Nigerians.

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