Fidelity Bank Plc has announced plans to expand in at least five African countries following the completion of its acquisition of rival Union Bank of Nigeria Plc’s London unit.
The 35-year-old institution is negotiating a second acquisition, according to chief executive officer Nneka Onyeali-Ikpe, without naming the target. According to her, the lender expects to complete the transaction this year.
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“Our strategy is to expand our footprint outside of Nigeria so that we can compete favorably with our peers,” Onyeali-Ikpe told Bloomberg over the phone from Lagos, the country’s commercial hub. “In the next three years, we should be able to visit six countries by doing at least two every year.”
Fidelity is racing to expand and avoid losing fees from trade facilitation and corresponding banking roles to larger competitors.
According to the African Trade Policy Centre at the United Nations Economic Commission for Africa, trade within the continent, which currently stands at more than $350 billion per year, is expected to grow by 52% over the next decade.
According to Onyeali-Ikpe, the Nigerian lender is interested in countries in West, East, and Southern Africa. The company’s stock has risen 32% this year, making it the best-performing bank in the country. They increased by 0.7% on Friday.
Fidelity Bank paid about $15 million in fees to international correspondence banks that handled trade transactions for its customers in 2022, according to Samuel Obioha, head of investor relations.
Even after taking a hit from Ghana’s debt swap deal, Nigeria’s large lenders have been expanding overseas. Access Bank Plc announced this year that it will expand from 16 to 26 countries by 2026, citing the need to better manage risks and diversify earnings.
