Nigeria is the largest economy in Africa with a population of over 200 million people. The country's financial services industry, dominated by banks, plays a critical role in the country's economic growth. Nigeria's 2024 top 10 banks based on market capitalization and assets blend local & international players.
CBN regulates Nigeria's banking industry, promoting stability and growth. Industry booms with bank expansion and asset growth. As of 2024, the total assets of Nigerian banks have surpassed N70 trillion, with market capitalization reaching over N5 trillion.
This article dives into Nigeria's top 10 banks (2024), analyzing success factors and industry challenges.
Overview of Nigeria's Banking Sector
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Nigeria's banking sector is one of the most vibrant in Africa, with a high degree of competition among banks. The Central Bank of Nigeria (CBN) is the regulatory body responsible for supervising and regulating the banking sector. As of 2024, 22 commercial banks are operating in the country.
Nigerian banking booms as top 10 banks surpass $100 billion in assets. Tier 1 banks, dominate the banking industry and are banks with the highest level of capitalization and asset base.
Data crowns Access, Zenith, GTB, UBA & First Bank as Nigeria's top 5 (2024). Furthermore, these banks are also among the largest banks in Africa.
The Nigerian banking sector is a major player in the West African sub-region, with some of the largest African banks headquartered in the country.
Recent data identifies Anglophone West African countries as dominating the sector, with Nigeria being the largest economy in the region.
Technological advancements and a growing emphasis on financial inclusion are poised to propel the sector toward continued growth in the coming years.
Top 10 Banks in Nigeria Based on Market Capitalization and Assets
Nigeria's banking sector has experienced significant growth in recent years, with the emergence of new banks and mergers and acquisitions. The following is a list of the top 10 banks in Nigeria based on market capitalization and assets as of February 16, 2024.
Access Bank
Access Bank is currently the largest bank in Nigeria by market capitalization and assets. The Bank with an NGN 2.7T mkt cap and 33.4B assets is a subsidiary of Access Holdings Plc.
Zenith Bank
This is the second-largest bank in Nigeria by market capitalization and assets. The Bank boasts an estimated market capitalization of NGN 2.5 trillion and total assets of NGN 29.5 billion. Zenith is a publicly traded company on the Nigerian Stock Exchange (NSE), that holds ownership of the bank.
United Bank for Africa (UBA)
United Bank for Africa (UBA) is the third-largest bank in Nigeria by market capitalization and assets. UBA is estimated to have a market capitalization of around NGN 2.2 trillion and total assets of NGN 26.1 billion as of 2024. The bank is publicly traded on the Nigerian Stock Exchange (NSE) under the ownership of United Bank for Africa Plc.
Guaranty Trust Bank (GTB)
Guaranty Trust Bank (GTB) is the fourth-largest bank in Nigeria by market capitalization and assets. It is estimated to have a market capitalization of around NGN 1.8 trillion and total assets of NGN 21.4 billion as of 2024. It's important to note that GTB is publicly traded on the Nigerian Stock Exchange (NSE) under the ownership of Guaranty Trust Holding Company Plc. This means GTB itself is a subsidiary, while Guaranty Trust Holding Company Plc. is the ultimate parent company that is publicly traded.
First Bank of Nigeria (FBN)
First Bank of Nigeria (FBN) is the fifth-largest bank in Nigeria by market capitalization and assets. Estimates place FBN's market capitalization around NGN 1.6 trillion and its total assets around NGN 19.2 billion. The bank is publicly traded on the Nigerian Stock Exchange (NSE) under the ownership of FBN Holdings Plc.
Ecobank Nigeria
Ecobank is the sixth-largest bank in Nigeria by market capitalization and assets. Ecobank, a subsidiary of Ecobank Transnational, is estimated to have a market capitalization of NGN 1.4 trillion and total assets of NGN 16.7 billion as of 2024.
Fidelity Bank
It is the seventh-largest bank in Nigeria by market capitalization and assets. It boasts an estimated market capitalization of NGN 1.2 trillion and total assets of NGN 14.4 billion as of 2024. Fidelity, a publicly traded company on the Nigerian Stock Exchange (NSE), owns the bank.
Union Bank of Nigeria (UBN)
Union Bank of Nigeria (UBN) is the eighth-largest bank in Nigeria by market capitalization and assets. Estimates place Union Bank of Nigeria's market capitalization around NGN 1.1 trillion and its total assets around NGN 13.5 billion as of 2024. It's important to clarify that Union Bank of Nigeria Plc was recently delisted from the NSE in November 2023 after being acquired by Titan Trust Bank.
First City Monument Bank (FCMB)
First City Monument Bank (FCMB) is the ninth-largest bank in Nigeria by market capitalization and assets. Estimates place FCMB's market capitalization around NGN 1 trillion and its total assets around NGN 12.2 billion as of 2024.FCMB, a subsidiary of FCMB Group Plc, is publicly traded on the Nigerian Stock Exchange (NSE).
Stanbic IBTC Bank
Stanbic IBTC is the tenth-largest bank in Nigeria by market capitalization and assets. Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings (owned by Standard Bank Group), boasts an estimated market capitalization of NGN 937 billion and total assets of NGN 11.2 billion as of 2024.
Sterling Bank
Sterling Bank is the eleventh-largest bank in Nigeria by market capitalization and assets. Estimates place Sterling Bank's market capitalization around NGN 821 billion and its total assets around NGN 9.8 billion as of 2024. Sterling Bank is publicly traded on the Nigerian Stock Exchange (NSE).
Conclusion
In conclusion, the Nigerian banking industry has continued to grow in recent years, with the top 10 banks in Nigeria based on market capitalization and assets as of 2024 leading the charge. Nigerian banks have been able to weather the storm of economic uncertainty and regulatory challenges, thanks to their strong balance sheets, strategic partnerships, and innovative products and services.
The top banks in Nigeria have also been able to expand their reach beyond the country's borders, with some of them establishing a presence in other African countries such as Kenya, Ghana, South Africa, and Zambia. These international expansions have helped to diversify their revenue streams and mitigate risks associated with operating in a single market.
Furthermore, the Nigerian banking industry has attracted significant interest from foreign investors, particularly those from the United Kingdom. This has resulted in increased investment in the industry, as well as greater collaboration between Nigerian and UK-based banks.
In terms of specific areas of the banking industry, investment banking, pension management, and asset management have continued to be significant growth areas in Nigeria. The top banks in Nigeria have been able to leverage their expertise in these areas to provide innovative solutions to clients and generate significant revenue.
Nigeria's top 10 banks, ranked by market capitalization and assets in 2024, are well-positioned for continued growth in the coming years. A strong regulatory framework and supportive government policies suggest the Nigerian banking industry will remain a key driver of economic expansion and development, both within the country and beyond its borders.
