First Bank of Nigeria Limited Expansion Efforts in Africa

First Bank of Nigeria Limited plans to expand its operations into Ethiopia, Angola, and Cameroon, seeking to leverage new opportunities in rapidly evolving financial markets. The bank aims to capitalize on recent regulatory changes in Ethiopia that allow foreign banks to establish subsidiaries. Over the past decade, First Bank has significantly intensified its presence across sub-Saharan Africa through strategic acquisitions.

First Bank of Nigeria Limited is embarking on an expansion initiative into multiple African markets such as Ethiopia, Angola, and Cameroon as it seeks to leverage opportunities presented by the evolving financial landscapes across the continent. This move comes more than a decade after the bank significantly increased its influence in sub-Saharan Africa through strategic acquisitions. Deputy Managing Director Ini Ebong highlighted the attractive prospects in large economies with growing banking sectors during the Africa Financial Industry Summit, noting that countries like Ethiopia and Angola are particularly appealing.

Ethiopia, poised to open its banking sector to foreign entities following new legislation, is a significant target for First Bank. Under the newly ratified banking law, foreign banks may establish subsidiaries but can only own a maximum of 49% of shares, which presents both opportunities and challenges for entry. As articulated by Ethiopia’s central bank governor, Mamo Mihretu, the country is now “open for business” for international banks, following a year of legislative efforts to enhance competitive dynamics in its banking sector.

Established in Nigeria over 130 years ago, First Bank has progressively extended its presence across Africa since 2011, initially with acquisitions in the Democratic Republic of Congo and later in several West African nations. The bank also operates internationally with branches in the United Kingdom, France, and a representative office in China, marking its commitment to a global banking presence. Recent financial reports illustrate that First Bank continues to thrive, with a significant rise in pretax profit noted in 2024 compared to the previous year.

First Bank of Nigeria Limited holds a prominent position within the African banking ecosystem. With a robust history exceeding 130 years, the institution has actively expanded its reach across sub-Saharan Africa, particularly since the early 2010s when it began acquiring interests in banks throughout the region. The evolving legislative landscape in key markets like Ethiopia hints at a growing openness to foreign investment in African banking, thereby creating opportunities for First Bank to further enhance its regional influence and capitalize on emerging markets.

First Bank of Nigeria Limited is strategically positioned to expand its operations into key African markets, namely Ethiopia, Angola, and Cameroon, capitalizing on evolving financial regulations and growing economic opportunities. The landmark banking legislation in Ethiopia serves as a potential catalyst for foreign investment, which First Bank is eager to embrace. This undertaking marks a significant phase in the bank’s ongoing mission to strengthen its presence across the African continent and diversify its operations.

Original Source: nairametrics.com