Merchant Banks
Merchant Bank is any financial institution licensed to carry out the activities of providing intermediary services to undertake large and complex financial transactions on behalf other companies or government, such as understanding, issuing house for securities, merger etc. See functions of merchant banks in Nigeria
For a financial institution to operate as merchant bank in Nigeria, such institution must obtain license from the Central Bank of Nigeria according to Banks and Other Financial Institutions Act (BOFIA) 2010, and approval by Security and Exchange Commission to operate in the capital markets.
Merchant Banking Licence
This licence allows financial institutions to provide professional services like wholesale banking or investment banking services as set out in guidelines made under the CBN Scope, Conditions and Minimum Standards for Merchant Banks Regulations No. 02, 2010.
Merchant bank licencing by CBN requires minimum paid up capital of N15 billion or any other prescribed amount.
Merchant banks can also be referred to as investment banks. But in Nigeria merchant banks are different from investment banks, although they are in the same category banks and perform similar roles.
There are presently five merchant banks licensed by the CBN in that category.
Coronation Merchant Bank
FBN Quest Merchant Bank
DSH Merchant Bank
Nova Merchant Bank
Rand Merchant Bank
Coronation Merchant Bank
Coronation Merchant Bank is an investment bank licensed and regulated in Nigeria by Securities and Exchange Commission as broker-dealer firm. It has a wholly-owned subsidiary- Coronation Securities Limited.
Nigeria’s leading financial institution, Coronation Merchant Bank emerged the first and only internationally rated merchant bank in Nigeria as shown by the recently released Rating Report by Fitch, a global rating agency, 2020.
FBH Quest Merchant Bank
FBNQuest Merchant Bank is subsidiary of First Bank Nigeria which provides financial services to its clients for strategic partnership to individuals and organisations, empowering them to turn potential into tangible possibilities. Founded in 2014, FBNQuest Merchant Bank offers business funding services to its customers.
NOVA Merchant Bank
NOVA merchant is institution that offers banking products and services that cover Corporate Banking, Investment Banking, Advisory Services, Securities, Wealth & Asset Management.
Their clientele include private and public sectors as well as private individuals.
Their main targets are the Oil & Gas sector, Commodity & Agricultural business, Fast Moving Consumer Goods, Utility & Infrastructure, Trade & Services and other Financial Institutions.
Rand Merchant Bank
Rand Merchant Bank Nigeria Limited, located in Lagos is one of the leading investment banks in Nigeria. Some of its services include Securities and Commodity, Contracts Intermediation and Brokerage.