Absa Group Ltd. is looking to expand its presence in Nigeria, adding Africa’s most populous nation to its push to diversify beyond its biggest markets.
South Africa’s third-biggest lender is planning to convert its representative office into a merchant bank in a move designed to diversify its earnings away from the lender’s key markets of South Africa, Kenya and Ghana, which accounted for more than 80% of profit in the six months to June.
“We’ve got a rep office in Nigeria, which we are exploring the possibilities of converting into a merchant banking license,” the bank’s Chief Executive Officer Kenny Fihla said in an interview with Bloomberg TV.
Nigeria has become increasingly compelling for institutional lenders after President Bola Tinubu began taking moves to lure investors and accelerate growth. A merchant banking license would allow Absa to take corporate deposits and offer loans, investment banking and project finance.
The move would bring Absa into competition with its larger South Africa-based rivals Standard Bank Group Ltd., and FirstRand Ltd, as well as Nigeria’s own Access Holdings Plc, Zenith Bank Plc, and First Bank of Nigeria Ltd. Related News 2027: Utomi-led group to facilitate single opposition candidate against Tinubu, livestream polling units FG defends First Abu Dhabi bank deal, says loan will refinance expensive debt Nigeria needs private capital to close infrastructure gap- AltBank
