👨🏿‍🚀TechCabal Daily – Absa, but make it Nigerian

You’re probably used to seeing Nigerian banks announce their next African expansion every other month. This time, a South African bank is looking in the opposite direction.

What happened? Absa Group, South Africa’s third-largest lender by assets, is considering turning its Nigerian representative office into a merchant bank, which could give it a larger role in financing Nigerian businesses. Absa will be able to receive corporate deposits, provide loans, and offer investment banking and project finance. 

Explain like I’m new here: Absa already has a presence in Nigeria, but it currently operates through a representative office and separate subsidiaries covering capital markets and securities. Its Nigerian operations offer trade finance, investment banking, and market products. Absa’s chief executive officer Kenny Fihla said the group is exploring converting the representative office into a merchant banking operation.

A big fish entering a busy ocean: Absa is not exactly a small player testing the waters. The group operates across Africa, with banking operations in markets including South Africa, Kenya, Ghana, Uganda, Zambia, Tanzania, Botswana, Mozambique, Mauritius, and Seychelles. It serves more than 13.4 million customers and reported R58.79 billion ($3.61 billion) in total income for the six months to June 2026. 

Between the lines: Nigeria’s banking sector has grown, with its market capitalisation reaching ₦10.5 trillion ($7.7 billion) in 2025. Absa would be entering a market already crowded with tier-1 Nigerian banks such as Access Holdings, Zenith Bank, and First Bank, while also facing South African rivals Standard Bank and FirstRand.

The playbook: South Africa, Kenya, and Ghana generated more than 80% of Absa’s profit in the first half of…