Business
Standard Bank Set To Acquire Nigerian Banks …Sets Aside N200bn Take-over Fund
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.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.