The African Export-Import Bank (Afreximbank) provided Fidelity Bank with a $40 million facility to enhance Nigeria’s banking sector by aiding its acquisition of Union Bank UK. This development was disclosed at a press conference in Lagos, signifying a crucial step in the growth and strengthening of Nigerian banking abroad.
The financing agreement was completed in a ceremony that was attended by senior executives from Afreximbank and Fidelity Bank, as well as delegates from the Central Bank of Nigeria and the Ministry of Finance. This acquisition is intended to boost Fidelity Bank’s global footprint and offer expanded financial services to Nigerian businesses with international operations.
“This $40 million facility from Afreximbank is a testament to our confidence in Fidelity Bank’s strategic vision and operational capabilities,” said Professor Benedict Oramah, President of Afreximbank. “Supporting this acquisition aligns with our mandate to promote and expand intra-African trade and investment. We are confident that this move will foster greater economic integration and financial inclusion.”
The acquisition of Union Bank UK by Fidelity Bank is expected to bring about several benefits, including enhanced service delivery for customers, improved financial products, and the opening of new channels for trade and investment between Nigeria and the United Kingdom. The move is also seen as a strategic effort to tap into the diaspora market and facilitate international trade financing.
“Acquiring Union Bank UK represents a significant milestone for Fidelity Bank,” said Nneka Onyeali-Ikpe, CEO of Fidelity Bank. “This acquisition will enable us to expand our footprint internationally, providing seamless banking services to our clients in the UK and supporting Nigerian businesses in their cross-border transactions. We are grateful to Afreximbank for their support in making this vision a reality.”
Union Bank UK, a wholly-owned subsidiary of Union Bank of Nigeria, has been providing banking services in the UK since 1983, with a focus on retail, corporate, and investment banking. The acquisition by Fidelity Bank is expected to leverage Union Bank UK’s established network and expertise to offer enhanced services to clients.
“This transaction is part of our broader strategy to grow our international operations and serve the Nigerian community abroad more effectively,” Onyeali-Ikpe added. “We are committed to maintaining the high standards of service that Union Bank UK customers have come to expect while introducing new and innovative products that meet their evolving needs.”
The $40 million facility from Afreximbank will cover part of the acquisition costs, with the remaining funds sourced through Fidelity Bank’s internal resources and additional financing arrangements. This financial support underscores Afreximbank’s role in facilitating major transactions that drive economic growth and development across the continent.
“The collaboration between Afreximbank and Fidelity Bank exemplifies the kind of partnerships needed to strengthen Africa’s financial institutions and support their expansion into global markets,” commented Dr. Kingsley Obiora, Deputy Governor of the Central Bank of Nigeria. “Such strategic moves are crucial for enhancing the competitiveness of Nigerian banks and promoting economic stability.”
The acquisition process is expected to be completed within the next few months, following the necessary regulatory approvals and due diligence. Both parties have expressed confidence in a smooth transition and integration, ensuring continuity of services for existing clients of Union Bank UK.
As Fidelity Bank prepares to take over Union Bank UK, stakeholders in the banking sector and beyond are watching closely, anticipating the positive impacts this acquisition will have on Nigeria’s financial landscape and its international banking relations.
“This acquisition signifies a bold step for Nigerian banks in the global financial arena,” stated Zainab Ahmed, Nigeria’s Minister of Finance. “We applaud Fidelity Bank’s initiative and Afreximbank’s support, which together will enhance Nigeria’s banking capabilities and contribute to our economic growth and stability.”
The Afreximbank’s $40 million facility not only facilitates a key acquisition but also highlights the growing confidence in Nigeria’s banking sector and its potential to play a significant role on the global stage.
