Nigerian financial solutions firm Zedcrest announced the acquisition of RMB Nigeria Stockbrokers, a subsidiary of Rand Merchant Bank, for an estimated ₦400 million to ₦420 million. This move strengthens Zedcrest’s foothold in the Nigerian financial sector, particularly the equity market, which witnessed a remarkable 45% growth in 2023. This positive performance came despite headwinds like inflation, currency fluctuations, and delistings of major companies. Analysts attribute this growth to supportive government policies and strong corporate performances.
Adedayo Amzat, CEO of Zedcrest Group, highlighted the strategic benefits of the acquisition. By combining RMB Nigeria Stockbrokers’ expertise in stockbroking with Zedcrest’s existing financial solutions, the company aims to deliver greater value to its clients. The acquired entity will be rebranded as Zedcrest Securities, reflecting Zedcrest’s broader brand identity.
The Nigerian equity market’s resilience is noteworthy considering the prevailing economic challenges. Foreign exchange volatility and a weakened business environment have impacted various sectors, including consumer goods. The first quarter of 2024 saw a net outflow from foreign investors due to worsening macroeconomic conditions compared to the previous year.
Layi Olaleru, CEO of RMB Nigeria Stockbrokers, expressed optimism about the future. He emphasized a seamless transition for clients, assuring them that their interests remain the top priority. This acquisition underscores Zedcrest’s commitment to growth and its confidence in the long-term potential of the Nigerian market