Onome Amuge
Zenith Bank, Nigeria’s second-largest lender by market value, is stepping up its regional expansion drive with a planned entry into Ivory Coast, seeking to tap fast-growing Francophone economies as it deploys fresh capital raised this year.
The Lagos-based bank, which already operates in Ghana, Sierra Leone, The Gambia, the UK, China and the United Arab Emirates, is preparing to establish new operations or pursue acquisitions in the West African Economic and Monetary Union (WAEMU) and the Economic Community of Central African States (ECCAS). Ivory Coast, the region’s second-largest economy, is expected to open for business before the end of the year, with Cameroon to follow “as soon as possible,” according to Olukayode Akinbinu, Zenith’s head of strategy leading the expansion.
The move marks the lender’s most ambitious cross-border push in more than a decade and reflects growing competition among Nigeria’s largest banks to capture market share in Francophone Africa, where banking penetration remains low but economic growth is accelerating.
Adaora Umeoji, Zenith Bank’s group managing director and chief executive, said the bank will leverage its recently secured licence for a Paris branch to support operations across Francophone Africa. “Our Paris office is a strategic springboard, giving us a direct link to the eurozone while deepening our capacity to serve West and Central Africa,” she said in a presentation at the Nigerian Exchange last year.
Zenith plans to allocate about 40 per cent of the N350.5 billion it raised this year (Funds mobilised to meet new minimum capital thresholds imposed by the Central Bank of Nigeria) to its international expansion programme. The capital increase was part of a regulatory drive requiring Nigerian lenders to strengthen balance sheets and enhance resilience in the face of foreign-exchange volatility and rising credit risks at home.
Ivory Coast, where gross domestic product has grown at an average of 6.7 per cent over the past five years, offers an attractive entry point. The country has emerged as one of Africa’s fastest-growing economies, buoyed by investments in agriculture, energy and infrastructure. For Nigerian banks, the Ivorian market also provides a gateway to the wider WAEMU bloc, which uses the CFA franc, a currency pegged to the euro and seen as offering relative stability.
“Expanding into WAEMU aligns with our strategy of diversifying risk while capturing growth opportunities in high-potential markets. We are open to either greenfield expansion or acquiring existing players with a strong local footprint,” said Akinbinu.
Zenith’s overseas units are already contributing positively to group earnings, Umeoji said. Despite the challenges facing Nigerian lenders, from currency depreciation to inflation that recently topped 30 per cent, Zenith’s strong capital base and diversified income streams have positioned it for international growth.
The bank’s stock has risen 43 per cent this year, outpacing the Nigerian Exchange All Share Index, which has gained 35 per cent over the same period. Analysts say the outperformance reflects investor confidence in Zenith’s earnings resilience, strong capital buffers and expansion strategy.
Still, cross-border expansion carries risks. Operating in Francophone Africa means operating in different regulatory environments and competitive landscapes, while managing integration costs. Local banks in Ivory Coast, including Société Générale and Ecobank, already hold deep roots in the market. Analysts also caution that profitability may take time to materialise given the cost of building new operations and the need to establish brand recognition in markets where Nigerian lenders are less familiar.
Nevertheless, Umeoji insists that Zenith’s long-term growth will depend on building scale across the continent. “Progress looks different in each market, but our goal remains consistent: to be a pan-African institution that supports businesses, trade and individuals with innovative financial solutions,” she said.
