Posted by: Armel | January 10, 2009

Nigerian Banks Taking Over in 2009

oceanic-bank   uba     phb-bank



Because of their strong market cap compared to non-listed large banks on the continent, Nigerian Banks could no longer rely on domestic or neighboring countries for growth in earnings. Sooner or later, they had to expand beyong their usual landscape. It also will help that the foreign (US /UK, FRA) banks are in the process of adjusting their presence in Sub Saharan Africa (SSA). That in itself could create a new area that might possibly culminate with the take over of financial services in Africa by regional institutions.

In SSA (West, Central and East), the buying spree or strategic alliances in the financial sector we are about to see in 2009 is to be dominated by Nigerian Banks ( at least from SSA to the limits of the South African region where S.A bankers are also on the prowl).

Armel Njeunou



  1. Do you think their price correction on the exchange is over now? I think they have a fundamentally strong business if they do not get too greedy about it. lets see how it play out.

  2. Oz,
    I don’t think the price correction is over, but I also believe the expansion is part of a strategy to slow or halt that correction. Basically, they want their investors to trust that the valuation is accurate based on the long term potential.

    As for being greedy, I think it’s a real dilemma because you tell me who gets greedy first: Investors or the bank itself?

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