Guaranty Trust Bank PLC Nigeria (A)

- Somil Jain
PGP13227

 On February 11th, 1991, Guarantee Trust Bank began operations in Nigeria under the
direction of Adeola and Aderinokun.
 Nigeria experienced an economic crisis at that period. Low industrial capacity utilisation
(1995: 28%, 1994: 27%), double-digit inflation (projected to be about 30% for the current
year, but down from 73% the previous year), high unemployment, and a significant
external debt load were all present. In the form of short-term deposits, many depositors
sought to keep their money liquid. Despite changes to the country's laws intended to
attract more foreign investment, investors and tourists stayed away from Nigeria due to its
poor economic performance, high inflation, record on human rights, and the negative
connotations associated with information like the following from a U.S. State Department
bulletin.
 Adeola and Aderinokun intended to run their bank honestly, therefore they raised their
capital from many investors in little amounts, ensuring that no one would have the power
to influence their choices. They were aware from prior experience that if corruption
occurs once, it will continue to occur.
 After being submitted on May 29, 1989, the Central Bank approved GTB's licence
application on August 1st, 1990.
 By October, the majority of the 82 more individuals required to run the bank had been
employed and were undergoing training. Adeola and Aderinokun. They used outside
programmes and presenters who had prior banking experience to meet with staff in both
formal and casual settings during a variety of seminars and learning sessions. They
displayed "typical" retail and business bank clients. They created training programmes for
Total Quality Management with instructors from the Lagos Business School for particular
banking issues (TQM).
 To find out what people wanted, they also carried out surveys of their clients. They also
spent a lot of time talking about the cultural elements they intended to incorporate,
including "this idea and this vision that would make us different," as Aderinokun put it, as
well as "how we wanted to live our lives here." They came up with the "vision" of the
bank as a result of these conversations.
Problems:
 Employees dislike the bank's steadfastly moral course and prefer to find a quick solution.
 In a single year, they made enormous profits. To keep up with the company's expansion,
they made certain modifications and underwent a restructuring.
 But the employees' burden grew. They struggled to adapt to the new adjustments.
 The future appeared to be uncertain, which worried the staff. They were also worried
about the acquisition of Magnum Trust Bank and the merging of its methods and culture
into GTB's.