Nigerian Lenders Deepen African Footprint as International Banks Pull Back
Story: written by Uzuh Rita January 22,2026
Nigeria’s largest banks are strengthening their presence across Africa, filling the gap left by global lenders that are scaling down operations on the continent amid shifting international priorities and tighter regulations.
With several foreign banks retreating to focus on core markets in Europe and North America, Nigeria’s tier-one lenders are seizing the opportunity to expand regionally, leveraging strong balance sheets, digital platforms and deep knowledge of African markets. This strategy is reinforcing Nigeria’s role as a financial hub while increasing the influence of its banks across key African economies.
Industry analysts note that Nigerian banks are pursuing selective expansion, prioritising markets with strong trade links, growing populations and improving regulatory environments. Their focus spans corporate banking, trade finance, retail services and cross-border payments, areas where demand remains robust despite global economic uncertainty.
The shift also reflects broader changes in global banking. Rising compliance costs, geopolitical risks and stricter capital requirements have made many African markets less attractive to international lenders. In contrast, Nigerian banks are capitalising on regional integration efforts, including the African Continental Free Trade Area (AfCFTA), to support intra-African trade and investment.
However, analysts caution that rapid expansion comes with risks, including currency volatility, political instability and differing regulatory standards across countries. To manage these challenges, Nigerian banks are investing in risk management, governance frameworks and digital infrastructure to ensure sustainable growth.
As global lenders continue to retreat, Nigeria’s major banks appear poised to play an even bigger role in shaping the future of banking and finance across Africa.
