First Bank of Nigeria Limited Targets Expansion into Ethiopia, Angola, and Cameroon

First Bank of Nigeria Limited is preparing for its next growth phase as financial systems across the continent present new opportunities.

More than a decade after an acquisition spree bolstered its footprint in sub-Saharan Africa, First Bank of Nigeria Limited plans to expand into additional countries, including Ethiopia, Angola, and Cameroon.

“There are several large economies with substantial banking pools that interest us due to the opening of their financial markets,” Deputy Managing Director Ini Ebong told The Africa Report in December during the Africa Financial Industry Summit (AFIS).

Ebong emphasized the potential in Ethiopia and Angola, as well as francophone West Africa, where the bank aims to enhance its presence in countries like Côte d’Ivoire and Cameroon. “The market opportunity is significant, and we are eager to capitalize on it,” Ebong stated.

Ethiopia, Africa’s second most populous country, is set to partially open its banking sector to foreign banks following a parliamentary vote in December. The new banking law, approved by a majority in parliament, permits foreign banks to establish subsidiaries in Ethiopia, although foreign firms are limited to owning 49% of shares, according to the Ethiopian news magazine Addis Standard.

During a panel session at AFIS, Ethiopia’s central bank governor Mamo Mihretu noted that the country had been working on legislation to open the banking sector to foreign competition over the past year. With the ratification of the legislation, Mihretu declared that Ethiopia is “open for business” for foreign banks.

Ini Ebong, who was the executive director in charge of treasury and international banking before his appointment in June 2024, highlighted the growing opportunities across the continent with the expansion of financial systems. “We believe this is an opportune time to participate in the growth phase we are witnessing,” Ebong said.

Strong Franchise

FirstBank, which has been operational in Nigeria for 130 years, began establishing subsidiaries in other African markets in 2011 with the acquisition of Banque International de Credit in the Democratic Republic of Congo. In November 2013, it acquired the subsidiaries of International Commercial Bank Financial Group Holdings AG (ICBFGH) in The Gambia, Sierra Leone, Ghana, and Guinea, followed by ICB Senegal in 2014, completing its acquisition of ICBFGH’s West African assets and operations.

FirstBank also operates a subsidiary in the United Kingdom, with branches in London and Paris, France, and a representative office in Beijing, China. Its parent company, FBNHoldings, saw its pretax profit for the first nine months of 2024 rise to N610.86bn ($395m) from N267.88bn in the same period the previous year.

Fitch Ratings noted in July last year that FirstBank, Nigeria’s third-largest lender, represented 10.7% of banking system assets at the end of 2023. “Its strong franchise supports a stable funding profile and low funding costs. Revenue diversification is significant, with non-interest income typically exceeding 40% of operating income,” Fitch reported.