Searching for information about investment banks in Nigeria? You’re at the right place, as this post covers everything you need to know about investment banking in Nigeria.
Investment Banking in Nigeria – An Introduction
An investment bank is a financial institution that functions as a third-party intermediary in transactions for individuals, corporate institutions, and the government.
These types of transactions are often complex and heavy, hence the need for a service that can help ease the process.
In simpler terms, investment banks serve as the link between investors and financial markets.
They also exist to offer financial advice and procure financing for their clients.
Investment Banks in Nigeria are no different.
Nigerian investment banks help generate funding for major development projects such as Agriculture, Oil and Gas, Construction, Industrialization, Infrastructure, and so on.
They play essential roles in sustaining the economy, work with IT firms in Nigeria, and drive the development of the nation.
In fact, many of these investment banks rank as some of the top 10 banks in Nigeria.
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List of Top Investment Banks in Nigeria
In no particular order, here’s a list of the names of the best investment banks in Nigeria:
- Zenith Bank
- Vetiva Capital Management
- Standard Chartered Bank
- Stanbic IBTC Capital Limited
- Renaissance Capital Bank
- Afrinvest Limited
- GTI Group
Zenith Bank is a licensed institution that offers financial services to clients in Nigeria and West Anglophone Africa.
It is one of the top banks in Nigeria and provides an elite investment banking platform for customers.
Their investment banking services offer exposure to fixed income securities (US Treasuries, UK Gilts, and Sub-Saharan Africa Eurobonds), which are all dominated by the United States Dollar ($).
However, not all clients qualify for certain investment products as they can put their capital at risk.
Vetiva Capital Management
Vetiva Capital Management is regulated and duly registered by the Securities & Exchange Commission and the Nigerian Stock Exchange to carry on business as an Issuing House, Fund/Portfolio Manager, and Market Maker.
This financial institution provides services ranging from Investment Banking to Trust Services, Wealth Management, and Securities Dealing.
With Vetiva Capital Management, you can be sure of top-notch service delivery as they are one of the best investment companies in Nigeria.
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GTI Group is a top-notch international investment banking firm fully licensed to deal in corporate finance, financial advisory, and cutting-edge investment banking services.
They also offer a ton of services such as Securities Dealing, Asset Management, Trusteeship, Corporate Finance, Private Equity, and Micro banking.
They are one of the best in the business of investment banking in Nigeria.
Standard Chartered Bank
Standard Chartered PLC is a British multinational banking and financial services company headquartered in London, England.
With over 1,200 branches all over the globe – 22 of which are in Nigeria.
This financial institution has established itself as one of the best commercial and investment banks on the planet.
It has been mentioned as the best bank in Nigeria by many sources.
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If you’re looking for investment banks in Lagos, Afrinvest should be one of your major targets.
As a leading independent investment banking firm with a focus on West Africa, Afrinvest Limited deserves to be on this list.
This institution focuses on four main areas:
- Investment banking
- Securities trading
- Asset management, and
- Investment research.
The Investment Banking Division provides capital and financial advisory services to various clients in diverse sectors, including;
- Financial Services
- Heavy Industries, and
Renaissance Capital Bank
Renaissance Capital Bank is a top-level emerging investment bank with some of its operations going on in Africa.
Its investment banking services provide access to over 50 markets across the globe.
The firm was awarded as the Most Innovative Investment Bank for Emerging Markets by The Banker magazine’s annual “Investment Banking Awards”, 2018.
It is projected that this elite financial institution will be among the top 5 banks in Nigeria in a few years to come.
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Frequently Asked Questions (FAQs)
How much do investment bankers earn in Nigeria?
Investment bankers are on the list of the top-earners in Nigeria – and it comes as no surprise.
Such a complex and high-end job requires the best minds and intellectuals, and they get paid attractive allowances on a monthly basis.
It is estimated that entry-level investment bankers may earn about 300,000 Naira to 600,000 Naira monthly – excluding bonuses and other yearly arrears.
Investment bankers at higher levels may earn millions per month and even get to travel to different locations worldwide for business or pleasure.
How much does it cost to start a bank in Nigeria?
Starting a bank is never easy, and as one would expect, very expensive.
The amount required as share capital to start a bank in Nigeria starts from 1 billion naira.
What is Nigeria Investment Banking?
Investment Banking in Nigeria is a lucrative sector, and it has been that way since the discovery of oil wells deep under Nigerian soil.
Nigerian Investment Banks provide their clients with the best services in terms of financing major projects, and free share sale on the Stock Exchange, as well as other financial services.
They also provide finances for mergers and acquisitions, issuing new securities, and aiding Government agencies in bridging the gap of tax mismatches.
What is the Biggest Investment in Nigeria?
There are so many lucrative investment opportunities in Nigeria, so it isn’t easy to select the biggest of the pile.
However, if you’re thinking of investing in a business in Nigeria, you should probably go for Agriculture.
The country has finally woken up from its slumber and is now focusing on Agriculture as a viable path to development, rather than rely solely on oil and gas.
More so, Agriculture is the main source of livelihood for many Nigerians, so there is never a dearth of workers or customers willing to purchase farm products.
Nigeria’s broad range of climate variations makes it possible to produce a variety of food and cash crops, some of which include cassava, rice, cocoa, citrus, coco-yams, cow-peas, sweet potatoes, yams, beans, corn, millet, plantains, bananas, palm oil, rubber, cotton, groundnuts (peanuts), palm kernel, and variety of fruits and vegetables.
You can make a fortune by investing in Nigerian Agriculture, so go for it!
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What are the big 4 investment banks Globally?
The big 4 investment banks refer to the best of the best in investment banking.
You may want to consider these elite investment banks for your business or personal investment, as they are the best when it comes to providing financial products.
The big 4 investment banks include:
- Goldman Sachs
- J.P. Morgan Chase
- Morgan Stanley
- Barclays Investment Bank
How Many Merchant Banks do we have in Nigeria?
There are only 5 Merchant banks in Nigeria licensed and registered by the Central Bank of Nigeria.
- Coronation Merchant Bank
- FBNQuest Merchant Bank
- Rand Merchant Bank Nigeria Ltd.
- Nova Merchant Bank
- FSDH Merchant Bank
How Many Commercial Banks do we have in Nigeria?
There are 22 commercial banks in Nigeria, many of which rank in the list of top ten banks in Nigeria.
One of the most prominent commercial banks in Nigeria is Guarantee Trust Bank (GTB). In fact, there’s no list of current commercial banks in Nigeria without this particular bank listed in it.
Generally, commercial banks provide financial services to the general public and ensure economic stability.
Who is the richest investment banker?
The richest investment banker in the world is Jorge Paulo Lemann.
He is also the richest Brazillian in the world, with a net worth of about $41 billion.
Jorge launched his investment bank, Banco Garantia, in the early ’70s, which he later sold off in 1998 for $675 million.
He later set up an equity firm named Ambuev, and as of 2018, the company makes a net income of $2.9 billion.
What is the most powerful bank in the world?
The Industrial and Commercial Bank of China Ltd. is listed as the most powerful bank in the world.
It is the largest bank in the world in terms of total assets under management (AUM) estimated to be worth about $3.47 trillion.
The majority of their loan offers hover around the manufacturing, transportation, power, and retail sectors.
What is the minimum capital requirement for banks in Nigeria?
The new minimum capital structure, as described in a memo issued by the Central Bank of Nigeria, states that Tier 1 unit microfinance banks must have a ₦100 million capital threshold by April 2020, and ₦200 million by April 2021.
For Tier 2, CBN raised the capital base to ₦50 million by April 2021, but by April 2020, the threshold should be ₦35 million.
State-based banks are to have a capital base of ₦500 million by April 2020 and ₦1 billion by April 2021 while national microfinance banks must have a minimum of ₦3.5 billion base in 2020 and ₦5 billion by April 2021.
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How do I start a bank in Nigeria?
“How do I start my own bank?”
Many people ask this question as a fleeting thought, but only a few actually try to find out exactly how to set up their own banks.
As one would expect, setting up a bank is not child’s play.
Banks are one of the most regulated organizations anywhere in the world, so the process of setting one up is quite complex and expensive.
The Process of Starting a Bank in Nigeria
Here’s the process of starting a Bank in Nigeria:
Starting and running a bank isn’t anything like setting up a restaurant or a church.
You need to know about the operations of the financial market and to do that, you need to have some hands-on experience and surround yourself with a team of experienced individuals.
Conduct feasibility studies.
This will help you determine if your bank policies and setup will stand the test of time.
This step will prepare you for unforeseen circumstances, help you understand how well you can serve your customers, and device means on how to exploit the market.
Without the feasibility studies, your bank may crash and burn before it even takes off.
You will have to apply for approval in principle with the Central Bank of Nigeria (CBN.)
For approval in principle, you will have to provide the following documents.
Documents You will need to provide for Approval in principle
- A feasibility report on the proposed bank
- A draft copy of the memorandum and articles of association of your bank.
- A list of the shareholders, executives, and directors of your proposed bank with their details.
- The prescribed application fee
- Other documents that the CBN may request for from time to time.
After the approval in principle comes the final licensing.
This verifies your bank as fit and trustworthy for individuals and organizations to deal with.
Note that this particular process will take quite a long time (6 months or longer) because CBN will do their due diligence on the feasibility of the bank and the proposed individuals to run its operations.
To obtain final licensing, you will need to provide a couple of documents.
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Documents you need to provide before you obtain the Final licensing to start a bank in Nigeria.
- Prescribed licensing fee
- 3 certified true copies of Certificate of Incorporation of the bank, Memorandum and Articles of Association, Form CAC 2 (Allotment of shares), and Form CAC 7 (Particulate of Directors) of the bank.
- Evidence of the location of head office/branch building for the take-off of banking operations.
- Proof of strong room, loading bay, and banking hall facilities
- Evidence of installation of IT facilities/computerization
- Bullion lorries with necessary security gadgets
- Copies of letters of offer and acceptance of employment in respect of the management team
Also, you need to register the name of the bank with the Corporate Affairs Commission.
There, you will confirm the availability of the proposed name of your bank.
After confirming the licensing of your bank, you need to spread the word and let the general public know about your establishment.
This is where marketing strategies and advertisements come in. Make use of social media, word of mouth advertisement, TV, radio, newspaper, and so on.
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Top 10 banks in Nigeria, 2021
Below is a list of the ten top banks in Nigeria ranked by total assets as of 2021:
- United Bank for Africa
- Guaranty Trust Bank
- Access Bank
- Zenith Bank
- First Bank
- Sterling Bank
- Union Bank
- Fidelity Bank
- Stanbic IBTC
What should I invest in Nigeria 2021?
Nigeria is a vast country with an infinite amount of investment opportunities to explore.
However, most of these opportunities are still well under the radar and have not gained much recognition among the people.
The country is Africa’s largest economy, and with a population of over 200 million, it also holds the position of being the largest market on the continent.
In a nutshell, there are so many things to invest in in Nigeria.
Contrary to general belief, you don’t need to possess millions or billions to start investing in Nigeria. You don’t have to be amongst the richest men and women in Igboland, Yoruba, Hausa, or any other tribe to invest.
With as little as a thousand naira, you can join an investment program and get your profits in due time.
List of the most profiting investment opportunities in Nigeria
Here is a list of the most profiting investment opportunities in Nigeria
- Forex (Foreign Exchange)
- FGN Savings Bond
- Real Estate
- Cryptocurrency and Blockchain
- Oil and Gas
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What are the 4 types of investments?
In the business world, investment may take many forms, and it is important to understand all the types of investments before choosing to venture into anyone.
The four types of investments are:
- Fixed Interests
Final Thoughts on Investment Banks in Nigeria
This article has described the nature of investment banking in Nigeria and the options available for you to choose from. Now, you have some knowledge of investment banking that you did not have before, which is more than enough to help you make the right investment decisions.
The only way to save money is to invest it.
So, take a bold step today and invest.
There are more than enough investment banks in Nigeria waiting to welcome you.
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