Nigerian Corporate Counsel: Akeem Babatunde
Role: Company Secretary and Legal Adviser
Company: Intercontinental Bank PLC
Sector: Banking
Number of employees:12,000
Preferred law firms: Olaniwun Ajayi LP
Starting out as a merchant bank in 1989 under the name Nigerian Intercontinental Merchant Bank Limited, Intercontinental Bank became one the most profitable merchant banks in Nigeria within five years of opening. Following a conversion to commercial banking in 1999 and to universal banking in 2000, by 2002 Intercontinental Bank became a publicly quoted company listed on the Nigerian Stock Exchange. In 2005 it went on to merge with Equity Bank of Nigeria, Global Bank and Gateway Bank.
The bank’s 22-year history has not only been about rapid growth. In what has been a particularly turbulent past few years for the banking industry, Nigeria was no exception. With the 2009 Nigerian banking crisis, which led to allegations of fraud and corruption in the banking community, the need to clean up the sector and restore confidence back into the banking system is now at the top of the agenda. Intercontinental Bank was one of nine banks that was rescued in a $4 billion bailout by the Nigerian Central Bank and is now hoping to conclude its recapitalisation programme ahead of the central bank’s September 2011 deadline. Further to this, Intercontinental Bank has announced a planned merger with Access Bank, which has helped restore confidence in the bank. Company secretary and legal adviser Akeem Babatunde is optimistic about the proposal. “There is a lot of activity in the banking sector at the moment and the proposed merger will definitely be a good thing,” he says, “the two banks are well suited as Access Bank is strong in corporate banking and we have a good position as a retail bank. Combining the corporate and retail expertise will give us a very strong position in the market.”
Along with the developments in the industry as a whole, Babatunde has commented on how the role of an in-house counsel has evolved over the years. On the challenges associated with his position, he explains that the role is becoming more sophisticated: “In-house counsel is expected to know everything. The breadth of knowledge required is paramount as you are required to be able to provide solutions to a host of problems”. He also notes that the role requires a certain type of individual. “It is challenging as you need to be able to think on your feet and have a sharp analytical mind. What is most enjoyable about the role is that you gain a good understanding about how a business works. Being able to use this insight together with legal skill is a crucial element of the job.”
It remains to be seen how things will pan out in the banking sector. There has been a conscious effort to tackle the issues surrounding corruption with bold decisions that involved the removal of several senior figures in the industry. Potential consolidation in the market has injected some confidence that banks will get back on their feet. With regard to Nigeria in general, Babatunde sees it as a good place to do business due to the opportunities it can provide. “Nigeria is developing a great deal with areas such as telecoms and it also has the sectors that it is known for traditionally such as oil and gas.” He also appreciates the recognition that Nigeria is receiving: “There is interest from the rest of the world to tap into these kinds of sectors and this makes it an exciting place to do business,” adding, “we are also fortunate to have human capital that is very robust and can compete with anyone in the world.”
Where were you previously employed?
My previous role was with Gateway Bank before it merged with Intercontinental Bank. The best part of my legal career has been in-house, more specifically in the banking sector. I spent one year in private legal practice but found it too restrictive and prefer the robust environment that an in-house role offers.
How big is Intercontinental Bank’s legal department?
We have 32 lawyers and three paralegals making it a relatively big department. We are structured on a regional basis so that we are able to reach out to all our branches effectively.
What percentage of your work is performed by
in-house lawyers?
Around 70 per cent of the legal work is carried out by the
in-house team.
How is life as an in-house counsel different from that of a private practitioner?
Life as an in-house counsel is very interesting because it gives you the opportunity to experience different legal issues as opposed to private practice where one can be limited to a particular area of the law.
What qualities make a good in-house lawyer?
Willingness to learn is a key quality. As an in-house lawyer you are expected to have knowledge covering a host of practice areas and you must be prepared to keep up to date with legal developments. A real interest in how a business operates and being able to take a commercial view is also essential.
What qualities make a good private practice lawyer?
The ability to learn and listen are very important qualities for a private practice lawyer. They need to remain well informed of current developments and they need to take on board their client’s needs. This means that they should look beyond the legal issues and also consider the commercial aspects. A good private practice lawyer must also have solid organisational skills and provide a timely response to queries.
When will you enlist the advice of external advisers?
When there is doubt in the interpretation of the law we will look to external counsel. We predominantly use external lawyers for litigation matters.
Do you see yourself hiring the firm primarily, or the individual?
I will hire the firm over the individual. It is important to use a firm that has a good reputation as this gives me the assurance I am looking for.
Do you have a regular external corporate firm?
We use various firms depending on the matter at hand. It is very important to maintain relationships with the firms we use as this helps to develop an understanding about the business, it also means we can gauge their performance.
When dealing outside your home jurisdictions, how do you find counsel?
Through referrals, I will speak to colleagues to get feedback about counsel they have used.
What common behaviour from an external adviser or their firm do you find least acceptable?
Rigidity – in the sense that you can get excellent lawyers but they only focus on legal solutions over business needs.
What is the most pressing issue facing the legal profession today?
An issue that concerns me is that sometimes young lawyers can be less willing to learn. They are keen to progress quickly without spending the time they need to develop their knowledge and this could create a knowledge gap in the future.