Ecobank Transnational Incorporated (Ecobank), a renowned pan-African banking firm led by Cameroonian banker Alain Nkontchou, has formally begun custodian operations in Nigeria. This strategic move represents a substantial expansion for the bank as it strives to expand its position in Africa’s financial environment.
Following authorization from Nigeria’s Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), Ecobank has launched its custody services through the newly formed Ecobank Nominees Limited. The new firm will manage client assets separately from the bank’s own holdings, leveraging Ecobank’s vast experience managing assets totaling over $4 billion throughout Central, Francophone, and Anglophone West Africa.
During the inaugural event in Lagos, Bolaji Lawal, Ecobank Nigeria’s Regional Executive, emphasized the importance of the new custody services. “Our goal in Nigeria is clear—providing seamless, cost-effective, and immediate banking and investment solutions,” Lawal told reporters. “This new custodian service is a testament to our commitment to enhancing our banking offerings.”
Identifying a market void, Lawal stated that Ecobank intends to protect Nigerian investors’ assets while also providing a door to different commercial opportunities throughout Africa via its wide network. “We are enabling investors to leverage Ecobank’s robust infrastructure for new opportunities across the continent,” says Lawal.
Adebola Adedeji, Head of Custody and Managing Director of Ecobank Nominees Limited, stated that operations have begun, with clients already onboarded. The custody service is touted as a comprehensive, technology-driven solution that includes settlements, fund management, corporate action processing, foreign currency services, securities lending, and multi-market access via Ecobank affiliates.
Ecobank, a significant regional bank in West and Central Africa, operates in 36 countries, making it one of the largest pan-African banking organizations. Chairman Alain Nkontchou has a 2.18 percent ownership in the bank, which translates to 400,916,488 shares, demonstrating his dedication.
In the first half of 2024, the bank’s profit after tax increased by 196 percent to N311 billion ($196 million), up from N105 billion ($66 million) the previous year. Ecobank paid $679,000 to settle gratuities and savings for former Oceanic Bank employees. In Q1 2024, revenue climbed 5.02 percent year on year to N665.43 billion ($496 million), demonstrating the company’s financial health.
