GROUP OVERVIEW OUR APPROACH GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
OUR CORPORATE RESPONSIBILITY AND
SUSTAINABILITY APPROACH
Corporate responsibility and sustainability (CR&S) involves meeting FutureFirst;
the needs of our stakeholders now and in the future. It goes beyond
financing economic activity in a responsible way to ensuring an Educational Endowment;
inclusive, positive impact on our communities. It is about creating
long-term stakeholder value by adopting the opportunities and Youth Leadership & Development;
managing the associated environmental, social and governance risks.
Infrastructure development;
CR&S is not bolted on to our corporate strategy. It is embedded into
our business strategy and our daily operations. Our CR&S approach Hope Rising Initiative; and
is three-pronged: citizenship, stakeholder management and impact
management. Citizenship and stakeholder management involve Employee Giving & Volunteering.
putting into consideration the needs of stakeholders in making
decisions, while impact management is basically about minimising FUTURE FIRST PROGRAMME
our negative impacts and increasing our positive impacts on society.
In keeping with the Bank’s aim to promote financial inclusion, we
The sustainability is designed to deliver value in a structured way developed the FutureFirst initiative. FutureFirst is a financial literacy
along four key areas. These are: driving sustainable finance & and career counselling programme designed to empower secondary
investments; empowering people; supporting our communities and school students.
contributing to environmental sustainability.
Key objectives include helping students to:
Driving sustainable finance & investments - our customers remain
a vital element of our business. We constantly seek ways of providing gain the tools and knowledge to make effective and informed
products and services to meet their needs while ensuring that financial management decisions and achieve long-term financial
we manage our environmental, social and governance impacts in independence;
the process; thus, contributing to overall sustainable growth and
development. better understand how businesses are organised and operated;
Empowering people - we are committed to growing our people; develop critical thinking, speaking and leadership skills and be
providing opportunities and a supportive environment and culture for able to demonstrate the rewards of the free enterprise system;
personal development. and
Supporting our Communities - we invest our time and resources as make the right career choices.
part of our responsibilities to enrich the communities in which we
work and live. A total of 15,000 secondary school students have been reached so
far, with over 43,000 volunteering hours expended.
Contributing to environmental sustainability - we are committed to
avoiding or minimising environmental impacts beyond our responsible The Bank also engaged hundreds of secondary school students
lending efforts. through events for Financial Literacy Day and World Savings Day,
as well as a financial literacy event at Meadow Hall School in Lekki.
While these highlighted core areas are significant elements of our
Group CR&S, we have highlighted in details in this report programmes
under our Community Support platform.
SUPPORTING OUR COMMUNITIES
Our commitment to our host communities forms the core of our
corporate responsibility and sustainability efforts. To deliver long-
lasting impact, we have structured this work around four key
priorities: education, health and welfare, economic empowerment
and the environment. These are further subdivided into a series of
programmes which are listed and explained below:
Gboyega Fatoki, Former, Executive Director, FBN Merchant Bank
speaking to some residence of the Ikoyi/Obalende LGA; at the Pick
A Litter handover ceremony
FBN HOLDINGS PLC Annual Report and Accounts 2016 67
GROUP OVERVIEW OUR APPROACH GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
Our corporate responsibility and sustainability approach
EDUCATIONAL ENDOWMENT PROGRAMME YOUTH LEADERSHIP AND DEVELOPMENT
PROGRAMME
Empowering young people and stakeholders through education. Our
Educational Endowment programme was instituted as far back as Delivered in partnership with Junior Achievement Nigeria (JAN),
1994. Leadership Effectiveness Accountability and Professionalism (LEAP)
Africa; the Youth Leadership and Development programme has been
The programme’s key objectives include: designed by the Bank to support young people between the ages of
14 and 35. The programme’s key objectives are:
to enhance overall academic excellence through research;
to provide a platform for young people to gain a deeper
to complement the Federal Government’s efforts in the understanding of the qualities needed for leadership, and to
development and advancement of tertiary education in Nigeria; equip them with the relevant tools and skills;
to strengthen the Bank’s strategic approach to corporate to create opportunities for young people to participate in
responsibility and sustainability through its community support developing the country through sustainable community
work; and development programmes; and
to contribute to the building and reinforcement of FirstBank’s to provide mentorship and value-based leadership for young
brand value proposition. people.
The programme is driven by a number of universities, each of which Activities in 2016 include providing financial support for the building
has a professorial chair endowed by FirstBank. We also provide an: of an entrepreneurial centre for young people and interschool creative
writing competitions; as well as participation in leadership workshops
annual research grant; in partnership with LEAP Africa and ABC Home work place.
annual public presentation of research findings; and INFRASTRUCTURE DEVELOPMENT PROGRAMME
annual award for the three best graduating students in the As part of efforts at improving the quality of lives of members
particular field of focus. of our host communities, the First Bank initiated the First Bank
Infrastructural Development Programme aimed at promoting
The fund currently supports the following professorial chairs: infrastructural development under identified areas of support. This
includes providing infrastructural facilities in schools, hospitals and
1. Professorial Chair in Business Ethics, University of Lagos the community.
2. Professorial Chair in Computer Science, Federal University of Some of the infrastructural projects constructed by the Bank includes:
Technology, Akure the Remi Babalola Red Cross Clinic, Information and Communication
Technology Park at the Ahmadu Bello University Zaria, Faculty of
3. Professorial Chair in Department of Petroleum Engineering, Dentistry Building at the University of Nigeria Nsukka, Renovation
University of Uyo of class room blocks at the Police College Kaduna, Lecture theatres
at the Obafemi Awolowo University and the Federal University of
4. Professorial Chair in Agronomy, Federal University of Agriculture, Technology Minna and Cafeteria at the University of Calabar amongst
Makurdi others.
5. Professorial Chair in Paediatrics, Bayero University, Kano HOPE RISING INITIATIVE
6. Professorial Chair in Banking and Finance, Nnamdi Azikiwe The Hope Rising Initiative is one of our key programmes designed
University, Awka to empower people living with a disability. Its objectives include
engendering inclusivity and diversity through education, advocacy
7. Professorial Chair in Veterinary Medicine, Uthman Dan Fodio and enlightenment, encouraging skills acquisition through training,
University, Sokoto and staging inclusive events. In 2016, some of the initiatives we
supported in under this programme include:
8. Professorial Chair in Chemical Engineering, Abubakar Tafawa
Balewa University, Bauchi Down Syndrome Foundation Nigeria and Down Syndrome Annual
Awareness Week;
9. Professorial Chair in Water Resources Engineering, University of
Maiduguri Benola Cerebral Palsy Initiative;
10. Professorial Chair in Mechanical Engineering, University of Benin
68 FBN HOLDINGS PLC Annual Report and Accounts 2016
GROUP OVERVIEW OUR APPROACH GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
Our corporate responsibility and sustainability approach
Nigeria Society for the Blind; EMPLOYEE GIVING AND VOLUNTEERING
Golden Hearts Touching Lives; Our Employee Giving and Volunteering programme was set up to
encourage employees to give something back to the community, and
Sebbecly Cancer Care; instil the integral corporate culture of giving in them.
Segun Aina Foundation; The programme is structured around two elements:
two Lagos State University students – Ade Adelekan, who is Volunteering: this involves employees volunteering their time and
physically challenged, and Adebisi Omojola, who suffered serious skills to support philanthropic activities. This provides them with
illness; opportunities to use their capabilities in varied contexts, develop new
skills, partner with people within and outside the Bank, and expand
para-badminton competitor, Folawiyo Jimoh Adisa; their horizons.
Vama Wave Foundation; Giving: this aspect involves employees donating material resources
including cash towards addressing social, economic or environmental
CBA Foundation; challenges. Our giving is mainly driven through a crowd funding
approach. Crowd funding enables large numbers of people to make
VGC District 9110 Rotary Club; small contributions or donations to a cause.
Shaping Lives Foundation; The approach is three-pronged:
Banana Island Residents Association; Strategic alignment: our volunteering activities and initiatives must
be aligned with our corporate responsibility and sustainability strategy.
#Giving Tuesday initiative that supports care homes and displaced
persons’ camps; and Partnerships: the initiatives are also implemented by leveraging
existing partnerships, such as with LEAP Africa, the Down Syndrome
Remi Babalola Red Cross. Foundation, Junior Achievement Nigeria and the Nigerian Conservation
Foundation.
Participation: Employee Giving and Volunteering is open to all
employees for some initiatives; for a few projects, a subset of
employees is targeted, as specific expertise is required. For example,
our FutureFirst financial literacy and career counselling programme
is driven by employees with the appropriate skills and knowledge.
In addition, employees are encouraged to start and promote their
personal initiatives and are often recognised and rewarded by the
Bank for outstanding performance.
The programme is also aligned with the four core areas of our
Community Support Pillar – education, health and welfare, economic
empowerment, and the environment.
A student from Harmony Secondary School, Lokoja responding to
questions during a financial literacy session organised by FirstBank.
FBN Insurance and FBN General Insurance team with the Down
Syndrome Foundation children
FBN HOLDINGS PLC Annual Report and Accounts 2016 69
GROUP OVERVIEW OUR APPROACH GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
WHISTLEBLOWING IN FBN HOLDINGS PLC
Commitment to high ethical standards Provide assurance that all disclosures will be taken seriously,
treated as confidential and managed without fear of reprisal of
The Board of FBN Holdings Plc prioritises high ethical standards any form; and
and probity, and expects all its employees and executives to observe
such standards in all their dealings within the Group. To help ensure Help promote and develop a culture of openness, accountability
a high ethical standard, we established a code of ethics, which sets and integrity.
out the minimum standards of conduct expected in the management
of our businesses across the Group. All stakeholders are expected to Scope of the Policy
comply with these standards in the discharge of their duties. Whilst
the Group’s operating procedures are intended to detect and prevent The Policy is designed to enable employees and other relevant
or deter improper activities, we realise that even the best systems of stakeholders to report any perceived act of impropriety. Such reports
controls may not provide absolute safeguards against irregularities. should not be based on mere speculation, rumours and gossip, but
We recognise that there may be instances where these ethical on factual knowledge. Reportable misconducts covered under this
guidelines may be violated. To ensure that these possible violations Policy include:
receive attention from the appropriate office, we adopted a All forms of financial malpractice or impropriety such as fraud,
Whistleblowing Policy (Policy), which provides a channel for the
Group’s employees and other relevant stakeholders to raise concerns corruption, bribery, theft and concealment;
about workplace malpractices in a confidential manner, and to enable Failure to comply with legal obligations, statutes and regulatory
the relevant authorities to investigate and deal with such in a manner
consistent with the Group’s policies and relevant regulations. The directives;
Policy is therefore intended to support investigations into any reported Actions detrimental to health and safety or the environment;
misconduct or concern, and the taking of any appropriate actions. Any form of criminal activity;
The Policy applies to both internal (staff, contract employees, Improper conduct or unethical behaviour that undermines
management or directors) and external (customers, service
providers, applicants, auditors, consultants, regulators and other universal and core ethical values such as integrity, respect,
stakeholders) whistleblowers. honesty, accountability, fairness, etc;
The Policy outlines the Group’s procedure on Whistleblowing and Other forms of corporate governance breaches;
how all reported cases of illegal and unethical conduct or other Connected transactions not disclosed or reported in line with
misconduct across the Group should be dealt with. regulations;
The Policy complies with the requirements of various regulatory Insider abuse;
authorities with oversight of the Group’s activities regarding Non-disclosure of interest;
Whistleblowing, particularly section 3.1 of the Central Bank of Nigeria Sexual or physical abuse of any member of staff, customer,
(CBN) ‘Guidelines for Whistleblowing for banks and other financial applicant, service provider or other relevant stakeholders; and
institutions in Nigeria’, and section 5.3.1 of the ‘Code of Corporate Attempt to conceal any of the aforementioned acts.
Governance for banks and discount houses’. The aforementioned reportable misconducts or concerns are not
exhaustive. However, judgement and discretion are required to
Objectives of the Policy determine misconduct that should be reported under this Policy.
The general guide in identifying reportable misconduct is to report
The Policy is intended to encourage staff and other relevant concerns that it would be in the interest of the Group and the
stakeholders to report perceived unethical or illegal conduct of general public to stop, and for appropriate sanctions to be applied.
employees, management, directors and other stakeholders across The Policy regulates our activities as a Holding Company and all
the Group to appropriate authorities in a confidential manner, the subsidiaries within our Group. This is without prejudice to the
without any fear of harassment, intimidation, victimisation or reprisal. requirements by regulators of the various subsidiaries for them to
Specific objectives of the Policy are to: put in place their respective Whistleblowing policies.
Ensure all employees feel supported in speaking up in confidence Furthermore, the Policy complies with the X-Whistle programme of
the Nigerian Stock Exchange (NSE), of which FBN Holdings Plc is a
and reporting matters they suspect may involve improper, listed member. The Policy is also to be read in conjunction with the
unethical or inappropriate conduct within the Group; Whistleblowing guidelines that may be issued from time to time by
Encourage all improper, unethical or inappropriate behaviour to different regulators governing the Group’s subsidiaries.
be identified and challenged at all levels of the organisation;
Provide clear procedures for reporting and handling such
concern(s);
Proactively prevent and deter misconduct that could damage
the Group’s reputation;
70 FBN HOLDINGS PLC Annual Report and Accounts 2016
GROUP OVERVIEW OUR APPROACH GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
Notes to the Consolidated Financial Statements
for the year ended 31 December 2016
2.7 Income taxation
Current income tax
a. Income tax payable is calculated on the basis of the applicable tax law in the respective jurisdiction and is recognised as an
expense (income) for the period except to the extent that current tax related to items that are charged or credited in other
comprehensive income or directly to equity. In these circumstances, current tax is charged or credited to other comprehensive
b. income or to equity (for example, current tax on equity instruments for which the entity has elected to present gains and
losses in other comprehensive income).
Deferred tax
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying
amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the
initial recognition of goodwill; deferred tax is not accounted for if it arises from initial recognition of an asset or liability in
a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable
profit or loss.
Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet
date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against
which the temporary differences can be utilised.
Deferred tax liabilities are provided on taxable temporary differences arising from investments in subsidiaries, associates and
2.8 joint arrangements, except for deferred tax liability where the timing of the reversal of the temporary difference is controlled
by the group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised on deductible temporary differences arising from investments in subsidiaries, associates
and joint arrangements only to the extent that it is probable the temporary difference will reverse in the future and there is
sufficient taxable profit available against which the temporary difference can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against
current tax liabilities and when the deferred taxes assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on
a net basis.
Deferred tax assets and liabilities are only offset when they arise in the same tax reporting group and where there is both the
legal right and the intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Inventories
The Group purchases and constructs properties for resale.
The Group recognises property as inventory under the following circumstances:
i. property purchased for the specific purpose of resale
ii. property constructed for the specific purpose of resale (work in progress under the scope of IAS 18, ‘Revenue’)
iii. property transferred from investment property to inventories. This is permitted when the Group commences the
property’s development with a view to sale.
They are valued at the lower of cost and net realisable value. Cost comprises direct materials and, where appropriate, labour
and production overheads which have been incurred in bringing the inventories and work in progress to their present location
and condition. Cost is determined using weighted average cost. Net realisable value represents the estimated selling price less
estimated costs to completion and costs to be incurred in marketing, selling and distribution.
100 FBN HOLDINGS PLC Annual Report and Accounts 2016
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