The Exit of Union Bank: Are Banks Afraid to Invest in Ibusa?

 The Exit of Union Bank: Are Banks Afraid to Invest in Ibusa?

- Ibusa People Exchange Views

Story by Emeka Esogbue

(Pen Master)

On Tuesday, a debate germane to the economic development of the Ibusa community was provoked on whether banks are afraid to invest in the community or not. Posting a submission in Ibusa Arise, a WhatsApp group, with a heavy Ibusa presence, Austin Ngwolo had queried: 

"Let's Discuss:

Why are banks afraid to invest in Igbuzo? Is the town economically unviable?"

"Is it not a shame that the only bank in Igbuzo now closes by 1.00 pm?"

The submission received the attention of some members of the forum, many of who might have been feeling troubled by the situation but had evidently found the debate a useful opportunity to give their responses. One of the commentators was Ngozi Akinmbo who described the situation as a shameful problem for the people of the community. According to him, the reason Union Bank relocated from the community is still shrouded in mystery as no one can tell what made the foremost financial institution in the country to flee the community the way it did. 

In the opinion of Patrick Emordi, the bank, if investigated, was not breaking even. 

"The Union Bank, if you would like to investigate, was not breaking-even. Ibusa was not economically viable for them hence the relocation. Please check or try to find out the Banking population in Ibusa. These are retired teachers with little monthly income; peasant farmers with little or no monthly income; pensioners and very few petty traders that need the last kobo in their heads for daily business.

These are not people that Banks are looking for to be in business," he opined.

Differing from this view, Austin Ngwolo blamed the bank for the woes, if any, while describing Ibusa as a very high mobile-labor friendly population which according to him is blessed with youths with what he called 'disposable cash.' It is the duty of the bank as a business enterprise, according to him, to develop strategies to harness the population since the community is blessed with wealth. 

The question of whether the Ibusa community is viable or not was tested with the firebrand response by Chris Aburo Anamanya's contribution which introduced interest and twist to the topic. He debunked every view that the community is not viable, terming it disjointed and stating that the community is both strategically, demographically, and economically viable for the investment of any bank with serious intention to do business.

"To start with, Ibusa is not a 100% agrarian town but a combination of petty traders, artisan, and government workers. All these people earn incomes and the question is where have they been doing their own banking transactions. In fact, the madness of rushing to Asaba because of its proximity to Ibusa for various banking transactions has over time and inadvertently too, contributed to the stifling of the only known Union Bank in Ibusa. Such people do not see or perceive the risk involved in moving heavy quantum of cash to Asaba and by their own actions helped in increasing the economic viability base of banks in Asaba while Union Bank, the only known bank in our town was gradually stifled and moved out of the town, too bad."

"Tell me how a 70 or 80-year-old man or woman will be shuttling Asaba to carry out banking transactions. If the few POS providers in Ibusa are seriously breaking even, why not a bank? In my days with the defunct Commerce Bank, a Cash Center, which later became known as the "Oke Arin" Branch was ab initio established as a mere cash center to service those petty traders around Idumota and Idumagbo axis. It was manned by an officer who was not even an Assistant Manager then. However, with the volume of daily high patronage, the ab initio "Oke Arin" Cash Office was later upgraded to a full branch. I have decided to go down memory lane to help our understanding..."

"I just hope and pray too that our case will not be like South Easterners who travel and settle down in various parts of this country to add to the economic viability of other people while leaving their homes unattended. 

For John Elikwu, elders with integrity are needed in the community. It is his view that the Ibusa traditional class must be purged of people with questionable characters. Nevertheless, it was Patrick Emordi who offered solutions to this aspect of the economic challenge faced by the community. 

"This is an issue our Ibusa Community Development Union (ICDU), social clubs, the Government and Ibusa people should take up. Ibusa is not economically viable for banks for now. There are no industries, no government offices; even many private businesses in Ibusa choose to use banks in Asaba. If any town has a strong Union, its development and growth including economic empowerment would be facilitated by the Union. This is actually done with negotiations with the Government, appeal to individuals and corporate bodies."

"Our new ICDU executives should rise to these obvious challenges and underdevelopment facing our Igbuzo."

PEN MASTER can reveal that Union Bank of Nigeria PLC, once the oldest bank in the community, strategically located along the Umejei Road, beside Ogbeowele Town Hall, opened in the community in 1982 and operated for over two decades as the only bank in the community before the recent sudden relocation outside the community. It is not clear whether any notice was issued to the community's leadership or customers who patronized them for nearly 30 years, to ascertain the reasons behind their exit. 

He found corroboration in Vincent Iwunor, a well-known indigene from Isieke, Umuekea axis of the town who also thinks the issue should be made a priority by the current Ibusa Community Development Union.

One illustrious daughter of the community in the Diaspora who refused to be named told PEN MASTER that she was frustrated, on her return to the community to learn that her bank, Union Bank had left the community. 

The teeming population of the community is now left with Keystone Bank as the only conventional banking institution to serve their financial needs in the community. 

Blessed with abundant human and economic wealth, Ibusa, located about 6 miles from Asaba, the state capital, and also named a part of Capital Development Territory is suffering government neglect with the inhabitants left with no choice but to depend on Asaba for their socio-economic needs.