African Expansion: Nigerian Banks Face Tougher Regulatory Rules, Analysts Warn

The warning comes as The Gambia recently directed commercial banks to begin phasing out non-Gambian employees.

Also, during the week, Kenya approved the transfer of the business, assets and liabilities of Access Bank Kenya to National Bank of Kenya (NBK), paving the way for the integration of the two entities.

Although the developments are different in nature, analysts said they underscore the increasingly complex regulatory environment Nigerian banks must navigate as they expand across African markets.

The developments also highlight the need for lenders to adopt market-specific strategies, strengthen local compliance and invest in indigenous talent rather than relying on a uniform approach to continental expansion.

In The Gambia, the Central Bank of The Gambia (CBG) directed commercial banks operating in the country, including subsidiaries of Nigerian lenders Access Bank, FirstBank, GTBank and Zenith Bank, to commence a phased replacement of non-Gambian employees with suitably qualified Gambian nationals.

Speaking with THISDAY, Director, Deals Advisory, PwC Nigeria, Wale Olusi, said the directive did not prevent foreign-owned banks from operating in The Gambia but required them to comply with the country’s regulations.

“On the Gambia, the regulation clearly doesn’t stop foreign-owned entities or banks from operating, as the case may be, but they must comply with local laws,” Olusi said.

He noted that The Gambia, with a population of about two million, has faced manpower constraints, which have historically resulted in Nigerians and other foreigners occupying senior positions in some institutions.

“The Gambia has a manpower challenge. In fact, a number of Nigerians occupy top positions there precisely because of this gap,” he said.

According to Olusi, the directive was aimed at protecting employment opportunities for Gambians, making it necessary for affected banks to invest more in training and developing local talent.

“What this simply means is that these institutions have to invest in training and empowering locals, building their capacity to do the jobs required, if they wish to continue operating in The Gambia,” he said.

He, however, said the development should be viewed within a broader global trend towards greater protection of local employment, noting that similar concerns had emerged in other African countries and developed economies.

“However, if you put what has happened in The Gambia together with what we’ve seen in South Africa and perhaps a few other African countries, there is a growing concern – not just in Africa, but globally – about migrants or expatriates dominating the job market while locals remain unemployed,” he said.

Olusi said the challenge for governments was to ensure that policies aimed at protecting local employment were matched with investment in human capital, enabling local workers to eventually take up positions occupied by expatriates.

Access Bank Gambia has four Gambians out of seven positions reviewed, representing 57.1 per cent, alongside two Nigerians and one Ghanaian. GTBank Gambia has the highest Gambian representation, with five of seven positions, or 71.4 per cent, held by Gambians, while two are Nigerians.

Zenith Bank Gambia has an even split, with three Gambians and three Nigerians among six positions reviewed, giving each nationality 50 per cent representation.

At FirstBank Gambia, Nigerians occupy three of five positions reviewed, representing 60 per cent, while two are Gambian. Ecobank Gambia, which is not Nigerian-owned, has three Gambians, three Ghanaians and one Nigerian among seven positions reviewed, representing 42.9 per cent, 42.9 per cent and 14.3 per cent, respectively.

The figures cover only publicly identifiable board and senior management positions and do not represent the nationality composition of the banks’ entire workforce.