First Bank of Nigeria Limited is set to expand its operations into Ethiopia, Angola, and Cameroon, leveraging growing opportunities in Africa’s financial markets. Recent legislative changes in Ethiopia allow for foreign bank subsidiaries, and Deputy Managing Director Ini Ebong highlights the bank’s strategic focus on large markets. The bank has a long history of successful acquisitions and is prepared for this new growth phase in several African countries.

First Bank of Nigeria Limited is strategically positioning itself for growth by expanding its operations into Ethiopia, Angola, and Cameroon, capitalizing on the opening financial markets across Africa. Having previously solidified its presence in sub-Saharan Africa through acquisitions, the bank aims to tap into the burgeoning potential of these large economies. Ini Ebong, Deputy Managing Director of First Bank, remarked on the favorable market conditions, emphasizing, “So, you look at countries like Ethiopia and Angola. In francophone West Africa, we want to expand our presence in places like Côte d’Ivoire and Cameroon.”

Ethiopia, preparing to partially open its banking sector to foreign banks, offers a significant opportunity. Recent legislation approved by Ethiopian lawmakers enables foreign banks to establish subsidiaries, albeit with limitations on ownership. Mamo Mihretu, the Central Bank Governor of Ethiopia, expressed optimism, stating that the country is “open for business” for foreign investments in the banking sector.

First Bank, which has been a key player in Nigeria’s banking landscape for over a century, has made substantial strides in expanding into other African markets since 2011. With recent growth evidenced by their impressive profit figures, the institution’s strong franchise and diversified revenue streams position it favorably within the competitive banking environment. As Ebong noted, there are increasing opportunities across the continent reminiscent of the financial growth seen in the early 2000s, indicating that now is an opportune time for expansion.

The bank’s history of acquisitions—including its strategic purchases of various subsidiaries across West Africa—has laid a solid foundation for this next phase of growth. With First Bank’s focus on markets poised for development, the prospects within Ethiopia, Angola, and Cameroon represent significant potential for both the bank and the broader economic landscape in Africa.

First Bank of Nigeria Limited, one of the oldest and largest financial institutions in Nigeria, is known for its expansive approach towards sub-Saharan Africa. Over the last decade, the bank has executed a series of acquisitions, which have enabled a wide-reaching presence across the region. The current landscape of Africa’s financial markets is witnessing a transition toward greater openness and competition, creating favorable conditions for foreign banks seeking to establish themselves in emerging economies. Ethiopia specifically is moving towards the inclusion of foreign banks, which follows legislative changes aimed at improving its banking sector.

First Bank of Nigeria Limited is poised for growth through its expansion into several key African markets, notably Ethiopia, Angola, and Cameroon. The favorable changes in Ethiopia’s banking regulations signal a critical opportunity for foreign investment, echoing a larger trend of increasing financial openness across the continent. The bank’s robust foundation and historical expertise in acquisition and expansion provide it with a strategic advantage to capitalize on these emerging opportunities.

Original Source: nairametrics.com