By Ayomide Otitoju
First Bank of Nigeria Limited, a cornerstone of Nigeria’s banking industry, is setting its sights on new markets across Africa as it embarks on its next growth phase. The bank is poised to expand into Ethiopia, Angola, and Cameroon, leveraging opportunities created by evolving financial systems across the continent.
Deputy Managing Director Ini Ebong disclosed the bank’s expansion plans during the Africa Financial Industry Summit (AFIS) in December. “There are a number of large economies with substantial banking pools that are of interest to us, particularly as their financial markets open up,” Ebong stated.
Focus on Ethiopia and Angola
Ethiopia, Africa’s second most populous country, is a key target for FirstBank. The country’s recent banking reforms, ratified by parliament in December, allow foreign banks to open subsidiaries, creating new opportunities for international players.
Ethiopia’s central bank governor, Mamo Mihretu, emphasized the country’s readiness to welcome foreign banks. “The largest economy in East Africa is now open for business,” Mihretu said, noting that the legislation marks a pivotal moment for Ethiopia’s financial sector.
Ebong also highlighted Angola as a potential market, citing the expansion of financial systems across the continent as reminiscent of the early 2000s in other large African markets. “We believe it is an opportune time to participate in this growth phase,” he remarked.
Building on a Legacy
FirstBank, with 130 years of operations in Nigeria, has steadily expanded its footprint across Africa since 2011. Its acquisition of Banque International de Credit in the Democratic Republic of Congo marked the start of its regional expansion. This was followed by the purchase of International Commercial Bank Financial Group Holdings AG’s subsidiaries in The Gambia, Sierra Leone, Ghana, Guinea, and Senegal between 2013 and 2014.
The bank also operates in Europe through its UK subsidiary, with branches in London and Paris, and maintains a representative office in Beijing, China.
Financial Strength and Performance
The bank’s parent company, FBNHoldings, recorded a pre-tax profit of ₦610.86 billion ($395 million) for the first nine months of 2024, a significant increase from ₦267.88 billion in the same period in 2023. Fitch Ratings, in its July 2023 report, noted that FirstBank represents 10.7% of Nigeria’s banking system assets and benefits from a strong franchise that supports stable funding and revenue diversification.
Future Outlook
FirstBank’s planned expansions into Ethiopia, Angola, and Cameroon signal its commitment to leveraging emerging opportunities in Africa’s financial markets. By focusing on untapped markets and strengthening its regional presence, the bank aims to remain a dominant force in the African banking landscape.
