First Bank of Nigeria Eyes Growth in Ethiopia, Angola, and Cameroon Amid Expanding African Financial Systems

First Bank of Nigeria Explores Strategic Expansion in Africa

Olusegun-Alebiosu-MDCEO

Building on its 130-year legacy, First Bank of Nigeria Limited is setting its sights on new horizons as it looks to strengthen its foothold across Africa. The bank is targeting Ethiopia, Angola, and Cameroon as part of its ambitious growth strategy, fueled by the ongoing liberalization of financial markets across the continent.

According to Ini Ebong, the Deputy Managing Director of FirstBank, the institution sees significant opportunities in emerging markets with robust economies and expanding banking sectors. Speaking at the Africa Financial Industry Summit (AFIS) in December, Ebong noted, “There are a number of large economies with substantial banking pools that are of interest to us. Countries like Ethiopia and Angola stand out. Additionally, in francophone West Africa, we aim to deepen our presence in Côte d’Ivoire and Cameroon. The market potential is undeniable, and we are keen to harness it.”

Ethiopia’s New Era in Banking

Ethiopia, Africa’s second-most populous country, recently took a monumental step by opening its banking sector to foreign investments. Following parliamentary approval in December, foreign banks are now permitted to establish subsidiaries in the country, with foreign ownership capped at 49%. Mamo Mihretu, the governor of Ethiopia’s central bank, highlighted this development during the AFIS event, stating, “The largest economy in East Africa is now open for business.”

This regulatory shift has positioned Ethiopia as a prime target for global banks, including FirstBank, which is keen to capitalize on the anticipated growth.

Proven Expansion Track Record

FirstBank’s history of strategic acquisitions underscores its ability to navigate and succeed in diverse markets. Since 2011, the bank has made significant inroads across Africa, beginning with the acquisition of Banque International de Credit in the Democratic Republic of Congo. Subsequent acquisitions in The Gambia, Sierra Leone, Ghana, Guinea, and Senegal through International Commercial Bank Financial Group Holdings AG (ICBFGH) solidified its West African presence.

Beyond Africa, FirstBank has established a global footprint with subsidiaries in the UK and Paris, as well as a representative office in Beijing.

Financial Growth and Recognition

FirstBank’s parent company, FBNHoldings, continues to achieve remarkable financial performance. For the first nine months of 2024, the group recorded a pre-tax profit of N610.86 billion ($395 million), a significant leap from N267.88 billion in the same period in 2023.

Fitch Ratings affirmed FirstBank’s standing as Nigeria’s third-largest lender, noting that it accounted for 10.7% of banking system assets at the end of 2023. The agency emphasized the bank’s strong franchise, stable funding profile, and revenue diversification, with non-interest income contributing over 40% of operating income.

As FirstBank sets its sights on Ethiopia, Angola, and Cameroon, its proven resilience and innovative approach position it as a leader in driving financial inclusion and economic growth across Africa.