Standard Bank, one of South Africa’s top banks, and some other foreign concerns are directing their attention to acquiring commercial and retail banks in Nigeria and other countries.

For the venture, Ben Kruger, deputy chief executive officer of Standard Bank, said $1.35 billion (about N200 billion) has been set aside for the purpose.

The banking group at headquarter level has capital of $1 billion for international expansions, including Nigeria. This is expected to complement the $350 million of excess capital in its Nigeria unit, Stanbic IBTC that could be used to fund acquisitions in the country.

“Our biggest priority in our banking expansion plans is the hot Nigerian market,” he told Emerging Markets in a telephone interview. According to Kruger, a working group has been set up to search for targets. It would be recalled that the crash in Nigeria’s stock market last year triggered a margin-lending crisis and a collapse in the banking system.

Sanusi Lamido Sanusi, central bank governor, had recently said the government planned Asset Management Company (AMC), which will buy toxic assets, is likely to get legislative approval after a joint sitting by the lower and upper chambers of the National Assembly in two weeks.

Already, Kruger told Emerging Markets that he has lobbied the CBN and government for Standard Bank to be the favoured foreign institution in the consolidation process, citing the banks’ history, experience and risk management profile.

At present, Standard Bank has 300,000 customers in Nigeria, compared with millions each at local competitors like Intercontinental Bank and First Bank.

South Africa’s First Band could also provide Standard with a run for its money in its push into Nigeria. Kruger said that acquisition of a retail bank would provide “crucial” access to a local customer base that is more difficult to achieve through organic growth. Separately, Standard Bank, which has 100 branches in Nigeria, plans to double its branch network to penetrate all 36 states of Nigeria over the next 18 months.

Also, it has been reported that Renaissance Capital (RenCap), Russia’s largest investment bank, plans to beef up its balance sheet in Africa Kruger believes that RenCap’s avowed push poses a threat to its investment banking operations.

He however said Standard’s partnership with Industrial and Commercial Bank of China would service Chinese corporate and state clients in Africa.