Merchant banks are germane in the financial services sector, and important to many economies of the world today. Largely, they offer commercial loans, investment and advisory services to large firms and high net-worth individuals (HNIs).
Merchant banks unlike commercial banks do not provide services to the general public. This means they don’t provide banking services like taking deposits and checking accounts. Merchant banks are heavily invested in wealth and asset management; and helping companies raise funds.
Owing to the crucial role they play in the Nigerian market and the economy, there is a need for a regulatory body. So, the Central Bank of Nigeria regulate their banking activities and that of other financial institutions.
Consequently, Central Bank of Nigeria (CBN) released regulations for Merchant Banks in 2010. And, this has not only consolidated the importance of merchant banks, but have also helped serve its clients better.
In this article, we have compiled a list of merchant banks that are licensed by the Central Bank of Nigeria.
List Of Merchant Banks In Nigeria
Rand Merchant Bank Nigeria Limited
Rand Merchant Bank Nigeria Limited (RMBN) is an authorised financial services provider in Nigeria. It is a subsidiary of FirstRand Limited, the largest listed financial services group (by market capitalisation) in Africa.
RMB began formal operations in Nigeria in 2013, after receiving it license from Central Bank of Nigeria (CBN) in 2012. It offers services like investment banking products and services.
Also, RMBN offers advisory, finance and trading solutions; provides investment opportunities; and manage funds for their clients. Over time, RMBN has improved and added significant value to the Nigerian economy, and her clients through its services. Basically, RMBN fund its client’s transactions across multiple sectors.
RMB has a large banking talent, and commodity experts who understand Nigerian and the broader African landscape. It is one of the leading corporate and investment banks in Africa.
It creates sustainable value, provides innovative solutions and superior economic returns to her clients and shareholders in Africa, UK and India.
Coronation Merchant Bank
Coronation Merchant Bank was first established in 1993 as an Associated Discount House Limited (ADHL) by a consortium of reputable financial institutions. At the time, its focal point was to provide liquidity for sovereign debt notes and money market instruments.
In 2013, it obtained a license from CBN to become a merchant bank. Additionally, in 2015 the bank obtained a foreign exchange dealing license.
Since then, Coronation Merchant Bank has grown to being a trusted financial adviser in the Nigerian banking industry. Now, it offers product and services in corporate banking, investment banking, wealth management, asset/fund management, global markets, securities trading and trust services.
Till date, Coronation has a track record of significant deals as financial advisers and stockbrokers to corporations, state governments and other financial services organisations.
FBNQuest Merchant Bank
FBNQuest Merchant Bank was formerly known as FBN Merchant Bank. It began operations after its parent company FBN Holdings Plc acquired 100% equity in Kakawa Discount House Limited, and subsequently secured approval to operate as a merchant bank in 2014.
Apparently, FBN Holdings Plc is one of the leading financial service providers in Africa, as it holds a significant financial capacity and a strong tradition of governance.
FBN Quest Merchant Bank caters to the financial needs of its clients which include: high net worth individuals, small and medium enterprises (SMEs), corporations, financial institutions and governments They leverage the specialisation of the subsidiaries of its parent company, FBN Holdings Plc to deliver and provide world-class solutions to her clients.
FBN Quest services include: coverage & corporate banking, financial advisory, debt capital markets, equity capital markets, debt solutions, institutional sales, fixed income currency & treasury, and wealth management.
FSDH Merchant Bank
First Securities Discount House Merchant Banks is one of the first merchant banks to be granted license in Nigeria in the new era of banking. At first, it began operation as First Securities Discount House Limited in 1992 and was the first discount house to operate in Nigeria.
FSDH Merchant Bank became a merchant bank after the Central Bank of Nigeria (CBN) revoked all banking licenses, and made a new banking structure in 2009 where banks became categorised as either a merchant bank or commercial bank.
Having developed the structures required to offer the full range of merchant banking services through its subsidiaries, FSDH then applied for a merchant bank license. In November, 2012, the Central Bank of Nigeria granted FSDH application and issued them a merchant banking license.
FSDH offers bespoke solutions to medium and large corporation, high net worth individuals and the government. Their services include: cash management, wealth management, risk management, financing services and advisory services
It also operates the FSDH Asset Management, one of the leading asset management and financial advisory firm in Nigeria.
Nova Merchant Bank
Nova Merchant Bank Limited is a licensed merchant bank in Nigeria with focus on wholesale and investment banking. It is operated by Nigerian and foreign institutional investors whose several decades of experience differentiate them from other players in the areas of financial services and the real sectors of the economy.
Nova provides end-to-end financial services solutions which involves corporate banking, investment banking, advisory, capital markets, wealth and asset management, e.t.c. It also target private and public sector clients and high net worth individuals.
So, there you have it; the list of merchant banks licensed by the Central Bank of Nigeria. To do business with any of the banks listed, visit them and conduct your due diligence. As always, it is our goal to inform, inspire and educate the entrepreneur.
We will like to know if you have transacted with any of the merchant banks listed, and what your experience was. Do let us know in the comments.