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.
See Also: Top 10 Mobile loan apps in Nigeria where employees and entrepreneurs can access loan
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.
See Also: How to get Tax Identification Number (TIN) and open a corporate account.
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.
See Also: Best podcast for small business owners and entrepreneurs in Nigeria
In this article, we have compiled a list of merchant banks that are licensed by the Central Bank of Nigeria.
See Also: 15 Free business directories and business listing websites in 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.
See Also: Top 20 business blogs in Nigeria every business owner should follow
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.
See Also: How to acquire customers for your business and make them stay.
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.
See Also: Ways to get funding and grow your business in Nigeria.
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.
See Also: 21 Ways to acquire new customers for your small business.
Greenwich Merchant Bank
Greenwich Merchant Bank is a leading financial institution in Nigeria, providing a wide range of merchant banking services. It began operations in 1992 as part of the Greenwich Trust Limited Group, a reputable investment banking firm. The bank was established to provide innovative financial solutions to corporate clients, institutional investors, and high-net-worth individuals.
Greenwich Merchant Bank became a full-fledged merchant bank after obtaining a merchant banking license from the Central Bank of Nigeria (CBN). The approval was part of the financial sector reforms that redefined banking categories in Nigeria. Since then, the bank has focused on delivering world-class merchant banking services tailored to the needs of its clients.
The bank offers bespoke financial solutions to businesses, high-net-worth individuals, and government entities. Its core services include investment banking, corporate banking, private banking, asset management, treasury and global markets, and securities trading. These services are designed to help clients grow and manage their wealth efficiently.
Greenwich Merchant Bank also operates Greenwich Asset Management Limited, a leading asset management and financial advisory firm in Nigeria. Through this subsidiary, the bank provides wealth management and investment solutions to individuals and institutions, ensuring long-term financial growth.
With a strong commitment to innovation, professionalism, and customer-centric services, Greenwich Merchant Bank continues to strengthen its position as a key player in Nigeria’s financial industry.
See Also: The Difference Between IBAN and SWIFT Code
Nova Merchant Bank: Transition to a Commercial Bank
Nova Merchant Bank was one of Nigeria’s leading merchant banks, providing investment banking, asset management, and other financial services. Established in 2017, Nova quickly became known for its innovative financial solutions tailored to corporate clients and high-net-worth individuals.
In 2024, Nova Merchant Bank transitioned into a national commercial bank after securing final approval from the Central Bank of Nigeria (CBN). The bank has since rebranded as Nova Bank, marking a significant shift in its operations and target market.
Reasons for the Transition
The decision to become a commercial bank was driven by several strategic objectives:
- Expansion into Retail Banking: As a merchant bank, Nova primarily served institutional clients. The transition allows it to provide services to a broader retail and SME market.
- Financial Inclusion: Nova aims to boost access to financial services by introducing a mix of physical branches and digital banking solutions, a strategy they call “Phygital” banking.
- Capital Growth: The bank’s shareholders injected additional capital to meet CBN’s new capital requirements for commercial banks.
Current Operations as Nova Bank
Since becoming a commercial bank, Nova Bank has taken key steps to expand its footprint in Nigeria:
- First commercial banking branch opened in Victoria Island, Lagos, with plans to expand into Abuja, Port Harcourt, and Kano.
- Introduction of a “Phygital” model, combining strategically located branches with high-tech digital banking solutions for seamless banking
- Strengthening its leadership team, appointing Wale Oyedeji as the Managing Director/CEO to oversee the bank’s transformation
Read more on Nova Bank’s transition here.
Services and Focus Areas
As a commercial bank, Nova Bank now provides a comprehensive suite of financial services, including:
- Retail Banking: Personal savings and current accounts, loans, and digital banking services.
- SME and Business Banking: Business accounts, lending solutions, and advisory services.
- Corporate Banking: Large-scale financial solutions for corporations and institutions.
- Digital Banking: Focus on seamless and efficient online banking, leveraging cutting-edge technology.
Nova Bank’s transition represents a major milestone in its growth strategy, positioning it to compete with established commercial banks like Access Bank, Zenith Bank, and GTBank. The move also aligns with CBN’s push for a more inclusive and digitally-driven banking sector in Nigeria.
See Also: 15 Creative ways Nigerian small business owners can market on Instagram.
Conclusion
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.
Here are ways we can help you as an entrepreneur:
- Register your business today with Entrepreneurs.ng’s Business Registration Services.
- Tell Your Brand Story on Entrepreneurs.ng, let’s showcase your brand to our global audience.
- Need help with your marketing strategy? Get a Comprehensive Marketing and Sales Plan here.
- Sign up for our Entrepreneurs Success Blueprint Programme to learn how to start and scale your business in just 30 days.
- Book our one-on-one consulting and speak to an expert about structuring and growing your business.
- Visit our shop for business plan templates and other valuable resources to guide you.
- Get our Employee-Employer Super Bundle NDA templates to legally protect your business and workforce.
- Join over 20,000 entrepreneurs by signing up for our newsletter and receiving valuable business insights.
FAQs on Merchant Banks in Nigeria
What are merchant banks in Nigeria?
Merchant banks in Nigeria are financial institutions that provide investment banking services, corporate financing, asset management, and advisory services. Unlike commercial banks, they do not offer retail banking services like savings accounts but focus on high-net-worth individuals, large businesses, and government institutions.
How many merchant banks are in Nigeria?
As of 2024, there are five licensed merchant banks in Nigeria:
- Coronation Merchant Bank Limited
- FBNQuest Merchant Bank Limited
- FSDH Merchant Bank Limited
- Greenwich Merchant Bank Limited
- Rand Merchant Bank Nigeria Limited
Nova Merchant Bank, previously a merchant bank, transitioned into a national commercial bank in 2024.
What is the difference between a merchant bank and a commercial bank?
- Merchant banks focus on investment banking, asset management, and corporate financing. They do not provide savings or current accounts for individuals.
- Commercial banks offer retail banking services, including personal accounts, loans, and payment services, in addition to corporate and SME banking.
Which is the best merchant bank in Nigeria?
The best merchant bank depends on the client’s needs. Some of the leading merchant banks in Nigeria include:
- Coronation Merchant Bank – Known for investment banking and asset management.
- FBNQuest Merchant Bank – Offers wealth management and corporate advisory services.
- Greenwich Merchant Bank – Specializes in investment banking, corporate finance, and asset management.
Can individuals open accounts with merchant banks in Nigeria?
No, merchant banks in Nigeria do not provide personal savings or current accounts like commercial banks. They primarily serve corporate clients, high-net-worth individuals, and government entities. However, individuals can invest in their wealth management and asset management services.
