Nigerian banks frequently merge to become stronger and more efficient. The Central Bank of Nigeria (CBN) normally encourages these mergers to ensure the stability of the banking industry and its ability to support the country’s rising economy.
By collaborating, banks may pool resources, cut costs, and provide better services, making them more competitive in Nigeria and throughout the world.
Mergers also help banks handle larger sums of money safely, distribute their risks, and comply with the CBN’s financial standards, all of which are critical for averting bank failures and protecting people’s money.
Here’s the top list of bank mergers:
1. Zenith Bank and EIB International Bank PLC
In 2005, Zenith Bank absorbed EIB International Bank PLC. This transaction was part of Zenith’s strategy plan to expand its market reach and service offerings.
2. United Bank for Africa (UBA) and Standard Trust Bank
In 2005, UBA amalgamated with Standard Trust Bank, expanding its network and market position in Nigeria and establishing a presence in West Africa.
3. Stanbic IBTC and IBTC Chartered Bank PLC
Stanbic IBTC Bank was formed in 2007 with the merging of Stanbic Bank Nigeria Limited and IBTC Chartered Bank PLC, strengthening financial services in Nigeria.
4. Guarantee Trust Bank (GTBank) and Intercontinental Bank
In 2011, GTBank purchased Intercontinental Bank. This merger was part of the Central Bank of Nigeria’s (CBN) efforts to strengthen the banking industry by encouraging the amalgamation of financially troubled banks with stronger institutions.
5. First City Monument Bank (FCMB) and Finbank
FCMB finalized the acquisition of FinBank in 2012, with the goal of boosting its market share and branch network in Nigeria.
6. Skye Bank and Mainstreet Bank
Skye Bank bought Mainstreet Bank from Asset Management Corporation of Nigeria (AMCON) in 2014. This acquisition was part of the CBN’s goal to maintain the stability of the banking industry.
7. Access Bank and Diamond Bank
In 2019, Access Bank concluded its merger with Diamond Bank. This merger allowed Access Bank to extend its activities, particularly in the retail banking sector, and become one of Nigeria’s largest banks.
8. Unity Bank and Providus Bank
On Tuesday 6th August 2024, the Central Bank of Nigeria (CBN) approved a critical financial accommodation to support Unity Bank Plc’s proposed merger with Providus Bank Limited.
According to a statement issued by the apex bank’s acting Director of Corporate Communications, Hakama Sidi-Ali, the measure is intended to strengthen the nation’s financial system and avoid any systemic concerns.
