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

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

When Ini Ebong, Deputy Managing Director of First Bank PLC, stood on a stage in Abidjan during the Africa Financial Industry SummitAbidjan, Côte d’Ivoire, he announced a four‑country expansion that could reshape the bank’s regional footprint. The plan targets Ethiopia, Angola, Cameroon and Côte d’Ivoire – markets the Lagos‑headquartered lender says are poised for a banking boom reminiscent of the early‑2000s wave.

Background: Africa’s Banking Landscape Shifts

Across the continent, regulators have started loosening the reins that kept foreign banks out for decades. Ethiopia’s parliament, for example, passed a liberalisation law in December 2024 that allows foreign banks to set up locally incorporated subsidiaries – albeit with a 49 % cap on foreign ownership. The move follows a year‑long push led by Mamo Mihretu, Governor of the National Bank of Ethiopia, who told the AFIS panel that the country was "finally opening up" after a half‑century of state‑dominated finance.

Other nations – Angola, Cameroon and Côte d’Ivoire – have already opened their markets to foreign capital, but they still lack a major Nigerian player. That vacuum creates an opening for First Bank, which already operates a modest network in West Africa.

First Bank’s Announcement at AFIS

During a panel discussion titled "Future of African Banking," Deputy Managing Director Ini Ebong said, "We see large banking pools emerging in Ethiopia and Angola, and a clear market opportunity in francophone West Africa. The timing is right to take part in the growth phase we’re witnessing." He added that the bank’s internal analysis compares the present climate to the wave of entry that hit Kenya, Ghana and Nigeria in the early 2000s.

The announcement was quickly picked up by regional outlets such as The Africa Report and Punch, confirming that the bank intends to file applications for subsidiaries in Addis Ababa, Luanda, Yaoundé and Abidjan within the next 12 months.

Regulatory Openings in Ethiopia

Ethiopia’s new law mandates that any foreign bank must partner with a local entity that holds at least 51 % of the share capital. For First Bank, that means finding an Ethiopian partner – a process that could take several months of due diligence. The central bank’s own guidelines, released in January 2025, require foreign entrants to meet capital adequacy ratios that are stricter than those for domestic banks.

Despite the ownership ceiling, analysts argue that the upside outweighs the restriction. With a population of roughly 126 million and a banking penetration of just 25 %, there’s a massive untapped customer base. Moreover, the Ethiopian diaspora in Nigeria could serve as an early client pipeline.

Strategic Rationale for Target Markets

• Ethiopia: East Africa’s second‑largest economy, fast‑growing middle class, and a newly liberalised banking sector.
• Angola: Third‑largest economy in Southern Africa, rich in oil revenues, and a currency reform agenda that encourages foreign investment.
• Cameroon: A gateway to Central Africa, with a dual legal system that offers flexibility for cross‑border banking services.
• Côte d’Ivoire: A francophone hub where First Bank already holds a small presence, making expansion a natural next step.

Each country also aligns with First Bank’s “regional integration” strategy, which aims to offer seamless cross‑border payment solutions for corporates operating across the continent.

Potential Impact and Expert Views

Financial analyst Aisha Bello of Lagos‑based firm AfricInvest noted, "If First Bank can secure the requisite local partners, it could capture up to 5 % of Ethiopia’s retail deposits within five years – a sizable slice given the market’s infancy."

Conversely, the International Monetary Fund’s regional officer warned that "regulatory uncertainty, especially around ownership caps, could slow down the rollout and increase compliance costs for newcomers."

For the bank’s shareholders, the move could translate into revenue diversification. First Bank posted a net profit of ₦165 billion ($420 million) in 2023, but earnings are heavily weighted toward the Nigerian market. Expanding abroad could hedge against domestic economic volatility.

Next Steps and Timeline

First Bank has outlined a three‑phase timeline:

1. Research & Partner Identification (Q1‑Q2 2025): Teams in Lagos will scout for compliant local partners in Addis Ababa, Luanda, Yaoundé and Abidjan.
2. Regulatory Filings & Capital Allocation (Q3 2025): Formal applications to each country’s banking regulator, accompanied by a capital injection of approximately $120 million across the four subsidiaries.
3. Launch & Market Penetration (Q4 2025‑2026): Opening of branches, rollout of digital banking platforms and marketing campaigns targeting SMEs and the diaspora.

The bank said it will monitor each jurisdiction’s approval process closely and may adjust timelines if political or economic shifts arise.