CASE STUDIES FROM AFRICA

Year Agriculture Manufacturing Services SMEs Exports Imports Total
2003 12.9 61.2 0.0 18.7 7.2 0.0 100
2004 13.9 68.3 0.0 11.3 6.4 0.0 100
2005 10.2 73.7 0.0 10.6 5.5 0.0 100
2006 8.6 77.7 0.0 4.5 9.2 0.0 100
2007 20.1 65.5 0.0 5.5 8.9 0.0 100
2008 3.4 29.5 59.8 0.4 2.4 4.6 100
2009 3.0 22.2 46.5 0.4 1.0 26.8 100
2010 3.4 25.9 45.7 0.3 1.2 23.5 100
2011 5.2 26.8 41.4 1.0 1.6 24.0 100
2012 8.6 32.0 35.9 0.4 1.6 21.5 100
2002-08 12.0 62.0 8.5 10.2 6.6 0.7 100
2009-12 6.4 33.8 35.6 2.5 2.4 19.3 100
Source: Computed from CBN Annual Reports and Statements of Account, various years.
Success Stories in Exporting Financial Services from Nigeria
In seeking to explore the rationale and motivations for Nigerian banks moving into other
national markets, the authors of this study approached First Bank, United Bank for Africa
(UBA), and Ecobank Nigeria Ltd. and asked their help as subjects of case studies. These are
banks that have significant operations in other African markets. After much deliberation, the
first two declined, but Ecobank agreed to our request regarding interviews and responded
to a questionnaire. The narrative below is therefore based mainly on secondary research and
publications of the financial institutions themselves.
Banks deal with numerous financial services that qualify as exports, whether with respect to
cross-border supply, consumption abroad, commercial presence, or presence of natural
persons referred to as Mode 4. Out of the various categories of bank services which are
traded across country borders (see Introduction for list of tradeable financial products), only
for a very few of them is it possible to obtain publicly available data for analysis. In
particular, income from foreign exchange transactions is a service area which features in
banks’ annual reports. Other products for which information is provided in annual reports
include investment in subsidiaries abroad (this constitutes commercial presence), and
placements or assets in subsidiaries abroad. These are what will be analysed with respect to
the three case study banks in the sections below.
United Bank for Africa
The United Bank for Africa Plc (UBA) was incorporated in 1961 and was listed on the
Nigeria Stock Exchange in 1970. It was incorporated to engage in banking business and was
delisted and relisted as a holding company in 2013 as UBA Holdings Plc in compliance with
the holding company structure mandate by the CBN, following the repeal of the Universal
Banking Guidelines. In 2005, Standard Trust Bank Plc (STB) merged with UBA under the
terms that all assets, liabilities, and undertakings, including real property and intellectual
property rights of STB, be transferred to UBA, and the entire share capital of 8 billion
ordinary shares of 50 kobo each of STB be cancelled and dissolved without winding up. The
mode of the merger was that one ordinary share of 50 kobo each in UBA Plc, was credited
and fully paid in exchange for 2 ordinary shares of 50 kobo in STB. Also in 2005, UBA
acquired Continental Trust Bank Ltd by paying cash to the owners of the bank.
The UBA has been recognised one of the fastest growing banks in Africa and has also been
tagged the Pan African bank in recent times. The bank has branches in 19 African countries
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