Overview of Investment Banking In Nigeria
Nigeria is considered to be one of the popular choices for working and attracting investments since the large oil reserves were tapped. Though it is combatting 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 focussed 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 entire issue of securities is bought by the bank and sold to the investors at a higher price.
- Offering funds for financing major projects such as Oil & Gas, Roads, Plant & 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 exchangeThe Free Share Sale On The Stock ExchangeStock exchange refers to a market that facilitates the buying and selling of listed securities such as public company stocks, exchange-traded funds, debt instruments, options, etc., as per the standard regulations and guidelines—for instance, NYSE and NASDAQ.. Legally, firms are not required to apply to banks while placing issues, through the intermediation of investment banksInvestment BanksInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc. permits the action to be executed smoothly.
List of Top Investment Banks in Nigeria
Some of the renowned Investment banks in Nigeria are:
Recruitment Process of Investment Banks in Nigeria
The process for recruitment is largely on similar lines but can be tweaked depending on specific profiles. 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 4 weeks.
- #2) – An aptitude test may be conducted depending on the company’s procedure. Such a screening is generally conducted to assess the personality of the candidate 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 are tested to understand how the individual will handle different situations.
- #4) – A round of Group Discussion (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. A group of multiple candidates is 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 which is taken by the Senior Analyst/ VP of the Investment Bank. It is generally a grilling session as most of the 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 skillsFinancial Modeling SkillsFinancial modeling refers to the use of excel-based models to reflect a company's projected financial performance. Such models represent the financial situation by taking into account risks and future assumptions, which are critical for making significant decisions in the future, such as raising capital or valuing a business, and interpreting their impact. Analytical skills as per the expectations of their future employees, the confidence level of the candidate and the overall personality and how can they fit into the culture of the organisation.
- Once the technical round is conducted if the candidate is considered suitable for the job the HR round will take place which is conducted by the HR department. This may be conducted on the same day or the next day but is considered as a final step before securing the job. The major objective of this round 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 pertaining to 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.
Investment Banking Salaries in Nigeria
Nigeria is one of the cheaper countries in the world to station finance activities compared to developed nations like the US. Most of the 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. [$1 = NGN 360]
- Additional emoluments can also be offered such as Housing facilities, Travel Allowances, Yearly vacations for self and family etc.
- 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.
Investment Banking in Nigeria – Exit Opportunities
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
- Film and Music industry
- Internet expansion
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 facility.
Exit opportunities are also available in other countries after gaining sufficient experience in Nigeria. Mid-level and Senior level managers can explore opportunities areas such as Middle Eastern and South-East Asian countries as well. Subsequently, doors can also be opened towards the European and American countries as well.
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 in Nigeria, investment banking salaries in Nigeria, and exit opportunities. You may also have a look at the following article for learning more about Investment Banking –