This is 2023, and we present the full list of merged banks in Nigeria since 2007. Yes, you’ll get details of all the mergers and acquisitions in the Nigerian banking industry.
Nigeria’s banking system is a long-standing institution that began in 1883. After a few years, the Nigerian Central Bank launched a merger and acquisition scheme.
Many banks have been compelled to combine due to legislation implemented by the Central Bank of Nigeria (CBN), while others have been taken over by top-tier banks and, as in the most recent case, included into the bank’s current models was Access – Diamond Bank on April 1st, 2019.
In June 2022, Access Bank Plc also entered into a binding agreement with Kenyan-based Centum Investment Plc for the acquisition of the entire 83.4 per cent equity stake held by Centum in Sidian Bank Ltd
We’ve recently written about the oldest banks in Nigeria and in this article we will compile the list of merged banks in Nigeria since 2007.
Before we get down to the list of banks that merged, it is pertinent that we enlighten you on what the word “merger” entails and possible reasons why some banks go into mergers.
A merger is simply the agreement and incorporation of two or more existing organizations into one conglomerate.
In terms of the banking institution, it is the agreement of two or more existing banks to form one bank for easy operation and diversification.
So, this article brings the list of merged banks in Nigeria to assess the benefits/consequences of bank mergers on the performance of the Nigerian commercial banking sector.
The Full List of Merged Banks In Nigeria 2023
In 2004, the Central Bank of Nigeria initiated a banking reform to strengthen the operational capabilities and competitiveness of Nigerian banks.
The goal is to reestablish public and global trust in Nigeria’s banking system and economy in general. As a result, 89 existing banks merged with one another. More recent mergers will be detailed later in this article.
Access Bank Plc
As we delve into the list of merged banks in Nigeria, we start from Access bank.
Access Bank first merged with Marina Bank in 2005. In the year 2013, Access bank also acquired Intercontinental Bank.
Also, in the year 2019, Access bank merged with Diamond Bank to become Access Bank as a whole. They went further to rebrand the logo to suit both banks.
Prior to the merger between Access Bank and Diamond Bank, Diamond Bank Plc had also merged with some banks in the past. In 2005, Diamond Bank merged with Devcom Bank and Lion Bank.
United Bank For Africa
United Bank for Africa (UBA), one of the most popular banks in Nigeria, owned by Nigerian billionaire entrepreneur Tony Elumelu, merged with two other banks in the past to form a better alliance.
The banks that were merged together with the United Bank for Africa (UBA) were Continental Bank and Nigerian Standard Trust Bank.
IBTC & Stanbic Bank
IBTC Bank and Stanbic Bank had merged to form Stanbic IBTC Bank Nigeria in the year 2007.
The company, Stanbic IBTC Bank Nigeria has grown from its inception as an Investment Bank, and Trust Company Limited (IBTC) as a commercial bank to become an end-to-end financial service provider in the country with subsidiaries spread across multiple economic sectors.
Stanbic IBTC Bank Nigeria now has assets and a capital base of around 2 trillion Naira and 500 billion Naira for Stanbic Bank and IBTC Bank respectively.
Stanbic IBTC Bank Nigeria is celebrating its 30th anniversary in the country.
Related: Full list of development banks in Nigeria
Before the merger between Stanbic Bank and IBTC Bank, IBTC bank had gone on a merger with several banks in the past years.
Banks subject to the merger with IBTC bank include IBTC Holdings, Regent Bank Plc, and Chartered Bank Plc.
Furthermore, on this list of merged banks in Nigeria, Sterling Bank was formed by merging five banks together.
These banks are; NBM Bank, Indo Nigeria Bank, Magnum Trust Bank, Nal Bank PLC and Trust Bank, Africa Ltd.
First Bank Plc
In 2005, CBN passed a law that forced First Bank of Nigeria, one of the most prestigious banks in the financial sector to merge with other banks in Nigeria.
The Banks involved in the merger include; FSB (merchant Bank), Intl Bank, and MBC. Currently, there are ongoing rumors that suggest that First Bank Plc is in talks for a merger with Heritage Bank of Nigeria and Fidelity Bank.
Due to the reform enacted by the Central Bank of Nigeria in 2004, nine (9) banks merged together in 2005.
In 2006, the alliance further changed its name to Unity Bank 2006. The 9 banks involved in this merger were:
- Unity Capital & Trust Limited
- Northlink Insurance Brokers Limited
- Hexali Properties Limited
- Caranda Management Services Limited
- Unity Kapital Assurance plc
- Unity Bank BDC
- Newdevco Investments & Securities Limited
- Unity Registrars Limited and;
- Pelican Prints Limited.
Skye Bank Plc
Skye Bank merged with some banks in Nigeria with the goal of forming a better alliance. The banks in the merger were Bond Bank Ltd, ETB Intl.
Bank Ltd, Prudent Bank Plc, Cooperative Bank Ltd, and Reliance Bank Ltd. In 2018, Polaris Bank purchased the services and assets of Skye Bank after Skye Bank became defunct.
Related: Full list of merchant banks in Nigeria and their headquarters
First City Monument Bank (FCMB)
Another bank on our list of merged banks in Nigeria is First City Monument Bank (FCMB).
FCMB is made up of a group of banks namely; NAMBL, Cooperative Development Bank, and Fist City Bank.
Also, in 2009, Finbank and First City Monument Bank (FCMB) started a talk of a merger. In the year 2012, the merger was complete.
Finbank paves the way for recapitalization ahead of the central bank’s September deadline. Finbank was one of the nine lenders that the central bank bailed out in 2009 with a $ 4 billion bailout.
Union Bank Plc
One of Nigeria’s top-tier banks, Union Bank Nigeria Plc also merged with some banks in Nigeria to form a stronger alliance and improve performance.
Three banks came together to form the merger. These three banks were Universal Trust Bank Nigeria Ltd, Union Merchant Bank, and Broad Bank of Nigeria.
Spring Bank Plc
Spring Bank Plc., popularly known as Spring Bank, was one of the twenty-six (26) commercial banks licensed by Central Bank of Nigeria at the time.
In 2005, Spring Bank was established from the merger of six (6) financial institutions in Nigeria.
The six institutions were:
- Citizens International Bank Plc
- ACB International Bank Plc
- Trans International Bank Plc
- Fountain Trust Bank Plc
- Omega Bank Plc and;
- Guardian Express Bank Plc.
At the time of establishment, Spring Bank had a large capital base of about $224 million. That is, 34.5 billion naira at the time with total assets estimated at approximately $988 million (152 billion naira).
Afribank Nigeria Plc
Afribank Nigeria PLC was initially a real estate and insurance broker company based in Lagos, Nigeria.
The bank formed a merger with Afribank Nigeria and Afribank international (Merchant Bank) to form Afribank Nigeria PLC. Later, it was terminated.
Platinum Bank and Habib Nigeria Bank Ltd
In 2005, Bank PHB was formed from a merger between Platinum Bank Ltd and Habib Nigeria Bank Ltd.
Keystone Bank and Bank PHB
Keystone Bank Limited was given a commercial banking license by the Central Bank of Nigeria in 2011. Keystone then purchased the services and assets of Bank PHB in 2011 after the bank became defunct.
Related: Top 10 Mobile banking apps in Nigeria
First Inland Bank Plc
Another bank on our list of merged banks in Nigeria is First Inland Bank Plc.
In 2005, four (4) financial institutions went into a merger agreement namely; Inland bank, First Atlantic Bank Plc, NUB International Bank Ltd, and IMB International Bank Plc to form First Inland Bank Plc.
The shares of the new bank, First Inland Bank Plc are quoted on the Nigerian Stock Exchange.
Ocean Bank and International Trust Bank
Also, Oceanic bank was established from a merger agreement between two (2) banks namely; International Trust Bank and Ocean bank in 2005.
Wema Bank and National Bank
Finally, on the list of merged banks in Nigeria, Wema Bank merged with National bank.
As of 2019, Wema Bank operates ALAT By Wema, Nigeria’s largest digital banking system, which is fully used in all 37 states and territories of the United States. Wema Bank is Nigeria’s fastest-growing commercial bank.
More Recent Mergers
Key transactions in the financial services sector included:
- Titan Trust Bank Limited’s acquisition of 89.39 per cent of the issued share capital of Union Bank of Nigeria Plc and Guaranty Trust Holding Company Plc’s acquisition of 100 per cent shares in Investment One Funds Management Limited;
- notably, Fidelity Bank Plc’s proposed acquisition of 100 per cent equity in Union Bank UK Plc. Although this is not an investment in Nigeria, it represents outward investment by Nigerian companies;
- First Pension Custodian Nigeria Limited, a subsidiary of First Bank Nigeria Limited, also acquired 100 per cent of Access Pension Fund Custodian Limited (a subsidiary of Access Bank Plc);
- Access Holdings also received regulatory approval to acquire a majority stake in First Guarantee Pension Limited; and
- Norrenberger, which is a Nigerian financial services group, received NAICOM approval to acquire 100 per cent of International Energy Insurance Plc.
Causes of Bank Merger
What are the causes for mergers between banks? I am sure you’d like to know… the list below gives the causes of bank merger:
- Shareholder pressure
- Enhancement of information and communication technologies (ICT)
- Reduction of the probability of failure.
- Better operation
- Increase in sales
- Saving of costs
The list of merged banks in Nigeria shows the urge to strengthen public confidence in the Nigerian banking sector.
Synergies are one of the key benefits of mergers and acquisitions, which include strengthening of capital base, rapid growth, competitiveness with international banks, and economies of scale due to improved performance.
The importance of integration (merger and acquisition) as a means of reforming the banking sector cannot be overemphasized.
Summary of The List of Merged Banks In Nigeria
This article has demonstrated that running a bank properly is not as simple as it appears. It is fraught with difficulties and dangers.
However, Nigeria’s finance sector is one of the top contributors to the country’s GDP growth.
Some banks join forces owing to financial problems, while others join forces to become a bigger and stronger brand. Regardless, it offers both benefits and drawbacks.
This list of merged banks in Nigeria suggests that mergers have increased the performance and profitability of Nigerian banks. As a result, the merging process should be constantly revised, modified, and developed.
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