Stanbic Nominees Nigeria Limited, a fully owned subsidiary of Stanbic IBTC Bank Plc, has been granted an approval-in-principle by the Central Bank of Nigeria, to act as custodian in money market and fixed income securities for the Nigerian market.
With the appointment, a statement issued by the bank on Thursday said Stanbic IBTC Bank had reinforced and extended its leadership of the Nigerian custody business which it pioneered about 15 years ago in the market.
Standard Bank of South Africa, its parent company, is the largest banking group and sub-custodian in the African continent, with assets under its custody over $300bn.
The statement added that, Stanbic Nominees would soon unveil extensive products to service and complement portfolio activities in Nigerian money market instruments and fixed income securities.
According to the Head, Investor Services, Stanbic IBTC Bank, Mr. Segun Sani, Stanbic Nominees will draw on a rich pool of experience and financial clout to offer clients excellent services and value for money.
“The appointment indicates the trust the apex bank reposes in Stanbic Nominees’ capabilities in offering clients top of the drawer custody services, which is drawn from Standard Bank’s rich heritage in custody services,” he added.
Aligning Nigeria with the rest of the world in money market and fixed income securities was a major factor that led to the introduction and appointment of custodians by the CBN. The adoption of international best practices will enhance transparency in money market operations in the country and cause an attendant lift in investors’ confidence, which will in turn enhance growth of the industry, Sanni explained.
Through its banking subsidiaries, Standard Bank currently provides custody services in South Africa, Nigeria, Kenya, Ghana, Namibia, Botswana, Swaziland, Zambia, Zimbabwe, Uganda, Mauritius and Malawi.
That gives Standard Bank the largest footprint, by far, in the African continent among service providers in sub-custody business with plans to extend the network and product offering to other sub-Saharan markets in the near future.
The Group recently spent well over US$20million on its custody technology platforms, which is dedicated towards developing local custody and related banking solutions for institutional investors in sub-Saharan Africa on a continuous basis. “Stanbic Nominees will help financial services in Nigeria become even more sophisticated and robust to attract further investments into the country,” Sanni added.