Mrs. Aishah Ahmad, CFAChairman, FITC Board

Chairman’s Statement

Managing Director/CEO’s Report

Dr Lucy Surhyel Newman, CPTManaging Director/CEO, FITC

Introduction Eminent institutional members of FITC, distinct members of the FITC Board, my dear colleagues at FITC, ladies and gentlemen. It is a cherished honour to present this update on FITC 's qual i tat ive accomplishments during the year 2017 and outlook for the next financial year.

The theme for the FITC 2017 Annual Report & Accounts, is . FITC has Enhancing FITC's Systemic Impactalways followed a trend of themes that reflect FITC's experiences for the year under review; 2017 is no different, in continuing this trend. The year started on a measured pace, especially during the first quarter. Projects for FITC's clients and stakeholders gradually picked up in the second quarter and peaked in the third quarter. By the last quarter in 2017, it became a steady pace.

Our Qualitative Performance in 2017The financial year 2017 is mid-way into FITC's 2015 - 2019 strategic plan period. Therefore, FITC maintained the three key strategic initiatives envisioned in the previous financial year. They are: [a] internal alignments and capacity enhancement of people, infrastructure and services; [b] deepening partnerships and collaborations; and [c] improvement of medium to long term value to members and the system. This is in continuation of FITC's extending reach into West Africa and the wider Sub- Saharan Africa region.

It may be recalled that in 2016, I reported on the completion of perimeter fencing of the 6.48 hectares FITC Lekki Campus in Lagos, Nigeria. I am glad that I can now inform you that in 2017, FITC initiated the final layout approval process, construction of an inner road and landscaping of the land. Members and stakeholders may recall that the property is situated between Crown Estate and Fara Park Estate along Lekki - Epe Expressway and Free Trade Zone corridor; a testament to the foresight exhibited by the successive Boards and Management, to position FITC as a destination and hub for learning, in West Africa.

Distinguished FITC members, I am pleased to report that FITC's networth crossed N2.0bn in 2017, indicating a 130+% growth from N868m as at December 2008 almost ten years ago. FITC's continental footprints within the year under review, has also continued to indicate that its services are increasingly being patronised by financial services sector operators and regulators in Togo, Ghana, Liberia, Sierra Leone, Uganda, Tanzania, Cote d' Ivoire, Mozambique, and Ethiopia. Expectedly, FITC designed and delivered over 40 in-plant training programmes, drawing 1,453 participants and 52 open enrolment programmes,

during the year. FITC also created 3 additional new courses as an enhancement of the 7 new courses introduced in 2016, thus enriching its product offerings. Therefore, my colleagues and I are inspired to see FITC increasingly becoming a sought-after organisation for professional learning and collaboration, by like-minded domestic and international premium brands thereby, increasing FITC's footprints on the African continent in terms of the impact of the FITC mandate and the reach of its services. As stated by the FITC Board Chairperson, I will now present a brief update on our recent major collaboration with the Finance Accreditation Agency (FAA).

New collaborationThe Finance Accreditation Agency (FAA), Malaysia is an independent quality assurance accreditation body supported by Bank Negara, Malaysia (Central Bank of Malaysia) and Securities Commission Malaysia. They are responsible for raising the standard and quality of

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Managing Director’s Report (cont’d)

professional learning and development in the financial services industry. As an advocate of the highest quality in international benchmarked standard for learning programmes, individuals and institutions, FAA aims to create highly skilled and internationally mobile professionals for the global financial services industry. Headquartered in Kuala Lumpur, FAA is sought out by institutions across the globe as the first institution to have developed learning standard for the financial services industry and to offer learning programmes accreditation.

As the Chairperson stated in her report, FAA and FITC signed a Memorandum of Understanding in November 2017. This step led to the commencement of the process of accrediting fifteen (15) of FITC's core courses with the Finance Accreditation Agency (FAA), Malaysia. Ten of the courses have already been accredited and ready for the system, while the remaining five will hopefully be accredited before the end of 2018.

The basis for the accreditation is to align FITC's course offering to international standard, as well as promote the banking industry with globally accredited courses for their requirements under the Competency Framework for the Nigerian Banking industry, especially as it relates to the control functions, which impact the quality of banks and banking practice. More so, many of the members of the Nigerian Bankers' Committee which consists of the membership of the FITC, are increasingly launching out across Africa, establishing international subsidiaries. Our aspiration in FITC, is to also be in a position to offer our members' international subsidiaries, the same traditional high quality trainings, as comparable to premium global training brands.

FITC therefore, truly appreciates the professional and constructive engagement that FAA is providing through the rigorous programme accreditation process and the various stages of the Certified Training Professional (CTP), because the FAA accreditation has provided an independent assurance of quality of the applicable courses, while the skills attained from the CTP continue to positively impact programme design, delivery and evaluation in FITC. Therefore, we believe this collaboration with FAA will enhance FITC's systemic impact in the financial services space.

This accreditation did not just happen by accident. So, with your consent, let me take us back in time and link the past to the present development. We may recall

that in 2006, all key regulatory institutions and select industry leaders in the Nigerian Financial System [FITC inclusive], came together and developed the Financial System Strategy 2020 Blueprint [Branded FSS2020]. FITC had the privilege of Chairing the Human Capital Development Implementation Committee from inception to ending of 2013. Initiatives within the Committee's report included an Approved Persons' Regime, a Financial Literacy Initiative, Competency Management Framework [CMF], etc. FITC remained alive to its role in the implementation of the systemic strategy, FSS2020, in a self-driven manner.

The CMF implementation guide to industry, with clarity on roles for key players including FITC was issued by the Central Bank of Nigeria, in 2012. Based on FITC's appreciation of the broader strategy and link to the CMF, FITC promptly engaged the industry on implementation and then designed a Competency Based Training Calendar for Banks in 2014, with further consultations, and then introduced the programmes as in-plant to Banks primarily, from January 2015. With a good run of the Competency based Training calendar in FY 2015 and 2016 incorporating industry feedback from sessions and based on patronage of the courses, FITC instantly recognized the opportunities with FAA programme accreditation at first meeting! FITC's logic to the selection of 15 courses being accredited, is that the controlled function competencies have profound impact on bank quality and sustainability. Therefore, given the focus of FSS2020 strategy and CMF, FITC picked 15 validated new areas of competence, from its 2 years simulated run of the Competency based Training Calendar in 2015 and 2016 for the FAA accreditation.

Future Outlook for the Next Reporting PeriodBased on our own transformation agenda and strong brand initiative, God willing, FITC will continue to support implementation of transformation projects. In view of this, FITC will continually deepen its engagements through strategic collaborations. Also, FITC will continually strengthen the gains from its partnerships with the International Finance Corporation (IFC) for the period 2011 - 2014 and 2015-2018 on Board Leadership and Corporate Governance Training, as well as the 2016 collaboration which led to the training (with support of the CBN), on "Moveable Asset Financing in the Nigerian Financial Services Sector" in May and December 2017 respectively. Plans are on-going to offer two more streams of the movable Asset Financing workshop to the system and also as inplant

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on institution specific request respectively. As expected, activities will expand in furtherance of the signed exclusivity agreement with the FAA on the Certified Training Professional (CTP) Programme for Nigeria. This is also available to heads of learning and training in the system. We are as such, committed to consolidating the partnership agreement with Finance Accreditation Agency (FAA), to expand capacity in the Nigeria financial system.

With the commencement of FITC's Competency Assessment System (CAS) which is a Web Based portal, my colleagues and I believe that this creative e-solution will enhance the objectives of the accreditation of 15 courses in the CMF, as initiated by the CBN in 2012, with FITC's follow up actions in 2015 and as recounted here for 2017 and 2018. By this, FITC commits to facilitating continuous flow of innovative products and services in the next reporting period, even as we plan on concluding the assessment processes for the five (5) outstanding courses due for accreditation, by the FAA.

Employee MattersOn our part as FITC, continued investment in staff competency and skills to deliver premium quality and innovative professional services in training, Consulting and research remained a key focus within the review year. In 2017, FITC recruited six (6) new employees. As usual, the recruitment process was rigorous based on assessment center approach and comprised psychometrics tests for behavioral inquiries, as well as other recruitment protocols. The successful candidates are currently undergoing the one-year probationary period after the respective customized induction programs, that lasted a week after their respective resumption dates.

During the year under review, there was marked improvement in the quality of qualification obtained by the professional staff of FITC. Cumulatively, 63.41% of total number of staff enrolled in either a Professional certification or Master's Degree program. As a learning organisation, FITC places a very high value on staff development and learning; as such all members of staff received various training in line with set goals for average training hours per staff per year during the period under review, made up of both local and international trainings. By continually improving own staff, stakeholders are assured of sterling service and performance.

ConclusionThis is possibly the last Annual General Meeting that I will physically attend as the MD/CEO of FITC because God-willing, my contract terminates early May next year. It is therefore with nostalgic emotions, that I write this conclusion. I would like to use this opportunity to thank all members of the Nigerian Bankers' Committee from 2009 to date, FITC's clients, FITC Boards from 2009 to date, as well as our highly esteemed stakeholders and staff of FITC, from 2009 to date, for their sustained confidence in FITC to deliver value-adding and high quality professional services. My special thanks goes to all Chairmen of the Nigerian Bankers Committee over my tenure as CEO, FITC's past and current Chairmen and Vice Chairs, as well as FITC CEOs before me, for access, counsel and unalloyed support in the discharge of my duties as the MD/CEO of FITC. It has been a highly cherished pleasure to serve in this role, which I have always approached as a mission to the system, than a job. God willing, my task from now to my planned exit, will be preparing the organisation and its stakeholders to receive a new leader as MD/CEO. Our sincere appreciation goes to the members of the FITC Board, for all the leadership support during the review year, while specially appreciating the Central Bank Governor, Mr. Godwin Emefiele CON, our immediate past Board Chairman and current CBN Deputy Governor Economic Policy, Dr. Okwu Joseph Nnanna, the current Board Chairman and CBN Deputy Governor Financial System Stability, Mrs Aishah Ahmad, CFA, as well as the FITC Board Vice Chairman and MD of NDIC, Alhaji Umaru Ibrahim, mni.

Based on insight to how 2018 is progressing and indicative horizon to close of the financial year, it is cautious optimism for me. Therefore, my colleagues and I look forward to a promising 2018 financial year and with the same perspective, encourage FITC institutional members to continually patronise FITC’s Training, Consulting and Research services, thus reap benefit of their investment in FITC.

Thank you and God bless us all.

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Managing Director’s Report (cont’d)

Dr Lucy Surhyel Newman, CPTManaging Director/CEO

July, 2018

FIVE YEAR FINANCIAL SUMMARY

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2017 2016 2015 2014 2013 N'000 N'000 N'000 N'000 N'000

Non-current assets 1,191,908 1,194,698 1,054,943 997,685 949,693

Current assets 963,537 653,073 747,728 802,514 780,672

Non -current liabilities (4,172) (2,836) (81,607) (15,335) (44,445)

Current -liabilities (116,307) (39,778) (12,634) (43,538) (47,815)

Net assets 2,034,966 1,805,157 1,708,430 1,741,326 1,638,105

Financed By: Equity: Accumulated funds 1,639,767 1,360,551 1,263,824 1,337,869 1,234,648Revaluation reserve 395,199 444,606 444,606 403,457 403,457

2,034,966 1,805,157 1,708,430 1,741,326 1,638,105

STATEMENT OF INCOME AND EXPENDITURE

2017 2016 2015 2014 2013 N'000 N'000 N'000 N'000 N'000

Tot al income 1,008,329 622,389 666,029 771,839 816,811

Tot al expenditure (724,687) (632,763) (658,718) (734,429) (766,199)

Surplus/ (deficit ) 283,642 (10,374) 7,311 37,410 50,612