Nigerian banks trail some African peers in Brand Equity Rankings —Report

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THE latest African brand equity rankings have revealed a concerning trend for Nigeria’s banking sector. Despite strong financial performance, the country’s top banks continue to lag behind their African counterparts in brand strength and recognition, underscoring an urgent need for a strategic reassessment.

Nigeria’s largest banks posted record earnings in 2024, yet that financial momentum did not translate into brand growth.

A new report by Brand Finance shows that Nigerian banks recorded the weakest brand equity growth among Africa’s top banking markets, trailing those in Kenya, South Africa, and Egypt.

Brand equity — a measure of perceived trust, loyalty, and reputation — is not a direct financial metric but significantly influences consumer behavior and market share.

Access Bank, GTCO, Zenith Bank, UBA, and First Bank of Nigeria collectively earned N4.14 trillion ($2.58 billion) in 2024. However, their combined brand value rose by just 5.37 percent to $1.57 billion, according to the 2025 African Banking report by Brand Finance.

In contrast, Kenyan and South African banks reported double-digit brand equity growth, driven by digital innovation and stronger customer trust. In Nigeria, fintech companies are rapidly filling the trust and service gaps, outpacing traditional banks in customer satisfaction, according to KPMG Nigeria.

“Despite significant profits, the expansion of digital banking has not yet delivered a meaningful brand impact,” said Babatunde Odumeru, Managing Director at Brand Finance Nigeria. He added that inflation and naira devaluation further slowed brand value growth by raising operating costs.

Kenya’s Equity Bank, KCB, and Co-Operative Bank saw their brand value rise by 25.1 percent to $1.18 billion. South Africa’s major banks surged 23.6 percent to $8.86 billion. Egypt followed with an 8.03 percent increase to $1.48 billion—still ahead of Nigeria.

Notably, Zenith Bank and UBA were the only two banks on the top 22 list to see a decline in brand value, falling by 16 percent and 26 percent, respectively. In contrast, Access Bank, GTCO, and First Bank posted growth of 17.8 percent, 31.6 percent, and 25.4 percent, respectively.

Kenya, Egypt, and South Africa are boosting banking brands through digital transformation, mobile banking, and financial inclusion. Nigeria’s banks, though expanding agent networks and increasing IT investment by 74.5 percent in 2024, must now focus on digital innovation, customer-centric services, and deeper fintech collaboration to remain competitive.

“Nigerian banks must innovate or risk becoming financially rich but brand-poor,” Odumeru warned.