First Bank of Nigeria Eyes Expansion into Ethiopia, Angola, and Cameroon

First Bank of Nigeria Eyes Expansion into Ethiopia, Angola, and Cameroon

First Bank of Nigeria Limited is preparing to expand its footprint into new territories as financial systems across Africa open up to foreign investment. Building on over a decade of strategic acquisitions across sub-Saharan Africa, the bank is setting its sights on Ethiopia, Angola, and Cameroon, alongside Côte d’Ivoire in francophone West Africa.

Speaking at the Africa Financial Industry Summit (AFIS) in December, Deputy Managing Director Ini Ebong outlined the bank’s vision. “There are large economies with significant banking pools that present opportunities as their financial markets open up. Ethiopia and Angola are particularly interesting to us, and we aim to strengthen our presence in markets like Côte d’Ivoire and Cameroon,” Ebong said.

Ethiopia Opens Doors to Foreign Banks

Ethiopia, Africa's second-most populous country, recently approved legislation to partially open its banking sector to foreign banks. The new law allows foreign banks to establish subsidiaries, with a cap of 49% on foreign ownership. According to Ethiopia’s central bank governor, Mamo Mihretu, the country has been preparing for this landmark reform, signaling that Ethiopia is “open for business” to global banking giants.

This move aligns with FirstBank’s strategic interest in participating in emerging growth opportunities across Africa. “We see this phase of market evolution as reminiscent of the early 2000s in larger African markets, and we believe it’s the right time to invest,” Ebong added.

A Legacy of Growth

Established 130 years ago, FirstBank is Nigeria’s oldest financial institution and has consistently expanded its operations across the continent and beyond. In 2011, the bank began its international expansion by acquiring Banque International de Credit in the Democratic Republic of Congo. It followed this up with acquisitions of International Commercial Bank subsidiaries in The Gambia, Sierra Leone, Ghana, Guinea, and Senegal.

Outside Africa, the bank operates in the United Kingdom, with branches in London and Paris, as well as a representative office in Beijing, China.

FirstBank’s parent company, FBN Holdings, reported a significant rise in pre-tax profit to N610.86 billion ($395 million) in the first nine months of 2024, compared to N267.88 billion during the same period in 2023. Fitch Ratings highlighted FirstBank’s strong franchise, noting that it represented 10.7% of Nigeria’s banking system assets at the end of 2023. The bank’s diversified revenue streams, including non-interest income exceeding 40% of operating income, contribute to its stable funding profile.

Looking Ahead

With its history of strategic acquisitions and a strong financial foundation, FirstBank is well-positioned to capitalize on emerging opportunities in Africa’s evolving financial markets. As the banking sector in countries like Ethiopia opens up, FirstBank is charting a path for sustained growth and market leadership across the continent.