Banking
Exploring the Nigerian Corporate Lending Landscape: Key Players and Market Dynamics
Corporate lending plays a vital role in the Nigerian economy, facilitating business expansion, infrastructure development, and investment activities. The market encompasses a wide range of financial institutions, including banks, non-banking financial institutions, and development finance institutions.
This corporate / lending environment is primarily governed by a set of regulations designed to ensure stability, transparency, and fair practices. The formulation and implementation of regulations governing corporate lending activities are primarily under the purview of the Central Bank of Nigeria (CBN). These rules include risk management recommendations, capital adequacy criteria, and prudential principles that are designed to protect the interests of both lenders and borrowers.
There are major key players in the corporate lending landscape, these key players wield significant influence and responsibility, shaping the direction and evolution of the corporate lending industry as a whole and they contribute to shaping the dynamics, trends, and overall success of the industry. Firstly, commercial banks are the primary providers of corporate loans in Nigeria. They offer a wide range of lending products tailored to the diverse needs of corporate clients. With their extensive branch networks and established relationships with businesses, commercial banks remain the cornerstone of corporate lending in the country.
Secondly, long-term funding for vital industries including manufacturing, agriculture, and exports is provided in large part by Development Finance Institutions (DFIs) like the Bank of Industry (BOI) and the Nigerian Export-Import Bank (NEXIM). To make loans more accessible to qualified companies, these organisations frequently work with commercial banks and governmental organisations.
Thirdly, Nigerian corporate financing also comes from non-bank financial organisations including finance houses and microfinance banks. These organisations service specialised markets and meet the financing needs of people and small and medium-sized businesses (SMEs), even if their market share may be lower than that of commercial banks.
Also, the Nigerian capital market provides alternate means of company financing through stock and debt instruments. It consists of the Nigerian Stock Exchange (NSE) and the bond market. Securities provided to investors, such as corporate bonds, can be used by companies to raise funds through initial public offerings (IPOs).
Corporate loan dynamics are significantly impacted by the current interest rate environment, which is determined by monetary policy actions and economic conditions. Interest rate fluctuations have the potential to impact borrowing costs and credit demand, which in turn can influence lending activity. Also, Corporate lending dynamics are frequently influenced by government initiatives and intervention programmes designed to promote economic growth and development. Targeted industries receive financial support and incentives from programmes like the Anchor Borrowers Programme and the Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS).
CitiHomes Finance company is a subsidiary of DLM Capital Group, licensed by the Central Bank of Nigeria to provide financial services to corporate organizations and individuals. such as credit support, funds management and program management on structured transactions. Built on the principles of accessibility, transparency, and user-friendliness, CitiHomes has emerged as a trusted partner for countless Nigerian business owners in need of financial support. CitiHomes finance company offer business loans to business owners at a competitive interest rate with a tenor of up to 48 months.
CitiHomes offers expertise in funds management, which involves management of funds on behalf of investors based on agreed tenor and return. CitiHomes also offers direct-term loans to partner institutions, SMEs and MSMEs. The tenor of the loans is designed to match the duration of the company’s cash flow repayment ability. Citihoms Finance Company acts as the conduit manager for different special purpose vehicles with investment in the latest technology complemented by the requisite skill set to offer our clients and commercial paper.
CitiHomes Finance Company also provides a vast range of standard, bespoke services conduit management services to its clientele. They are transaction monitoring, collection management, Preparing and Distributing Monthly / Quarterly Performance Reports for Investors and Preparing and Distributing Monthly / Quarterly Remittance Reports for Investors.
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By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
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