First Bank of Nigeria Limited plans to expand its operations into Ethiopia, Angola, and Cameroon in response to opening financial markets across these countries. As Ethiopia introduces legislation for foreign bank subsidiaries, Mr. Ebong highlights the vast opportunities available in these regions. With a strong history and recent financial growth, First Bank aims to capitalize on these emerging markets.
First Bank of Nigeria Limited is strategically poised to expand its operations in sub-Saharan Africa, with a particular focus on Ethiopia, Angola, and Cameroon. Having laid the groundwork over the past decade with earlier acquisitions, the bank is now actively seeking to leverage the opening financial markets within these larger economies. Deputy Managing Director Ini Ebong emphasized the importance of these regions during discussions at the Africa Financial Industry Summit, noting that Ethiopia’s recent legislative changes allow for partial foreign bank ownership in its banking sector.
The Ethiopian parliament’s new banking law permits foreign banks to establish subsidiaries while maintaining a share cap of 49%. Central Bank Governor Mamo Mihretu affirmed that upon legislative endorsement, Ethiopia is now “open for business” to international financial institutions. Mr. Ebong noted a parallel trend of expanding financial opportunities across Africa reminiscent of growth seen in the early 2000s, marking this as an optimal moment for foreign banks to enter new markets.
First Bank, which has an extensive 130-year legacy in Nigeria, began its African expansion in 2011 through strategic acquisitions. It has established a presence in countries such as the Democratic Republic of Congo, The Gambia, Sierra Leone, Ghana, Guinea, and Senegal. Alongside these African ventures, it has extended operations to the United Kingdom and has a representative office in Beijing. Recent financial reports demonstrate the bank’s robust performance, with its parent company FBNHoldings reporting a significant increase in profit in 2024.
First Bank of Nigeria Limited, a longstanding financial institution in Nigeria, has been actively expanding its operations throughout sub-Saharan Africa since 2011. This growth strategy has included acquiring numerous subsidiaries across various countries, thereby positioning itself to capitalize on emerging market opportunities. With major economies in Africa, such as Ethiopia and Angola, beginning to open their banking sectors to foreign investment, this expansion is timely for First Bank. The bank’s historical context, financial strength, and strategic foresight underscore its commitment to increasing its market share in the continent’s growing financial landscape.
In conclusion, First Bank of Nigeria Limited is strategically targeting expansion into Ethiopia, Angola, and Cameroon as part of a broader commitment to enhance its influence across sub-Saharan Africa. With positive legislative changes in Ethiopia allowing for partial foreign ownership, First Bank recognizes the ripe opportunities in these emerging markets. The bank’s rich history, coupled with its strong financial performance, positions it well to succeed in this next phase of growth in the African banking sector.
Original Source: nairametrics.com
