Investment Banking In Nigeria

Nigeria is considered one of the popular choices for working and attracting investments since the large oil reserves were tapped. Though it is combating issues such as corruption and security, the country has evolved over the last 25 years and is considered a desirable destination for many expats.

The investment banks in Nigeria are focused on offering a smooth blend of traditional and customized products for all kinds of customers, some of which can be shared as below:

• The traditional and crucial function of issuing new securities (bonds and shares) for private and government agencies and organizations. The bank bought the entire issue of securities and sold them to the investors at a higher price.
• Offering funds for financing major projects such as oil and gas, roads, plant and machinery, infrastructure, agriculture, etc.
• Finances for Mergers & Acquisitions.
• Aiding government agencies in bridging the gap of tax mismatches.
• Raising capital through the free share sale on the stock exchange. Legally, firms are not required to apply to banks while placing issues; the intermediation of investment banks permits the action to be executed smoothly.

Some of the renowned investment banks in Nigeria are:

• Afribank
• Fidelity Bank
• First Bank of Nigeria
• Standard Chartered Bank (Nigeria Branch)
• Urban Development Bank of Nigeria
• Savannah Bank
• Zenith Bank

The process for recruitment is largely on similar lines but can be tweaked depending on specific profiles. However, the procedure would generally be in the following manner:

• #1) - The candidate is required to apply for a particular position which is generally online. If the candidate appears suitable, they are called for the interview process. Though this step should not take more than a few days, on certain occasions, the completion of this step has taken more than four weeks.
• #2) - An aptitude test may be conducted depending on the company's procedure. Such a screening is generally conducted to assess the candidate's personality and how they are expected to perform in various situations. Certain candidates who are not fit are filtered out.
• #3) - A case study would be presented to the candidates, and they are expected to answer certain questions based on the contents of the case. These cases are generally real-life situations with imaginary names of employees. Similar to the aptitude test, the ability of the candidates is tested to understand how the individual will handle different situations.
• #4) - A round of group discussions (GD) can also be considered either as an alternative to the case study or along with the case study. In general, a GD aids in filtering out the most suitable candidates showcasing leadership abilities. Multiple candidates are seated in a roundtable, and a topic is presented for discussion. The topics for discussion would be general topics associated with or without the industry. The objective is not only to understand the opinion of the candidates but also to assess how they can handle a group of people with or without contradicting opinions.
• #5)- The next step is the interview process which is further broken down into a technical round and HR round
  • The Technical round is taken by the senior analyst / VP of the investment bank. It is generally a grilling session as most interviewers are highly experienced individuals. The interviewer will check certain aspects such as genuineness of the candidate based on the resume they have presented, valuation and financial modeling skills, analytical skills as per the expectations of their future employees, the confidence level of the candidate and the overall personality, and how they can fit into the culture of the organization.
  • Once the technical round is conducted, if the candidate is considered suitable for the job, the HR department will conduct the HR round. This may be conducted on the same day or the next day but is considered a final step before securing the job. The major objective is to ensure that the candidate will be a cultural fit in the firm. They check certain aspects such as how are they dressed up/groomed, career objectives, salary discussions, and overall personality (HR is considered better in assessing this aspect).

(It is possible that the rounds can be interchanged depending on the number of candidates)

Once the above steps are cleared, and the candidate is finalized, the candidate will be called upon for final negotiation about compensation, title, perks, date of joining, and any other confirmation. If the candidate accepts all the terms and conditions, they are selected, and the position is closed.

Nigeria is one of the cheaper countries in the world to station finance activities compared to developed nations like the US. Most established companies have set up one of their offshore units in Nigeria. This enables them to offer lucrative compensation opportunities to their employees.

• Analyst monthly salaries are generally in the range of 300,000 NGN (Nigerian Naira) to 500,000 NGN.
• Additional payments can also be offered, such as housing facilities, travel allowances, yearly vacations for self and family, etc.
• An investment banker in Nigeria can earn additional commissions as well depending on the success of the deal and a pre-decided percentage which the banker will be eligible for.

It is to be noted that there are multiple attractive and profitable industries for investment banking in Nigeria, and some of them are:

• Food production and Restaurant business
• Real estate
• Agricultural business
• Fashion industry
• Education
• Film and Music industry
• Internet expansion
• Logistics

One can explore their career opportunities within multiple industries, thereby gaining a holistic view. Thus, one can keep switching multiple companies dealing with more industries requiring investment banking facilities.

Exit opportunities are also available in other countries after gaining sufficient experience in Nigeria. Mid-level and senior-level managers can explore opportunities in Middle Eastern and Southeast Asian countries. Subsequently, doors can also be opened towards European and American countries.

Many developed nations also consider sending their expats to Nigeria with lucrative compensation opportunities to set up their bases or expand their activities in Nigeria.

This has been a guide to investment banking in Nigeria, their services offered, recruitment process, list of top investment banks, investment banking salaries, and exit opportunities. You may also have a look at the following article for learning more about Investment Banking –

• Investment Banking in Toronto
• Top Investment Banking in Brazil
• Investment Banking in Canada
• Investment Banking in San Francisco
• Investment Banking in Houston