Olufemi Adeyemi
Ecobank Nigeria Limited has obtained the necessary approvals from both the Securities and Exchange Commission and the Central Bank of Nigeria to initiate its custody business operations within the country.
In a statement released on Sunday, the Ecobank Group
announced that the custody services in Nigeria will be managed through Ecobank
Nominees Limited, a dedicated entity established to safeguard clients' assets
independently from the bank's own assets.
The Ecobank Group currently oversees custody services across
its subsidiaries in Central Africa, as well as Francophone and Anglophone West
Africa, managing a total of over $4 billion in Assets Under Custody.
During the launch announcement in Lagos, Bolaji Lawal,
Managing Director and Regional Executive of Ecobank Nigeria, emphasized that
this new custody service enhances the bank's ability to provide more valuable
banking and investment solutions to its clientele.
He said, “As a Pan-African Bank with a gateway into other
African countries, there was an identifiable gap to offer custody services in
Nigeria. We have therefore decided to provide a better way for Nigerian
investors to protect their assets and to spread their business interests across
the continent seamlessly, through our support.”
The Managing Director of Ecobank Nominees Limited, Adebola
Adedeji, announced the official commencement of operations for the custody
business. The business is now actively seeking clients and has already begun
onboarding customers.
She stated, The custody sector is poised to establish the bank as a comprehensive provider of high-quality financial services and investment solutions for our esteemed clients. Custody services are currently available in several countries where Ecobank operates, and our expansion into Nigeria will create additional opportunities for our clients in both African and international markets.
Ecobank's custody services deliver a streamlined post-trade experience through the implementation of a state-of-the-art technology solution, which will improve the client experience throughout the investment process. Our extensive range of services encompasses settlements, fund administration, processing of corporate actions, portfolio valuation, foreign exchange services, securities lending, cash management, escrow agency services, reporting, and access to multiple markets via Ecobank Group affiliates, among others.
Custody services refers to a financial institution that holds the possession of customers' securities to reduce the possibility of theft or loss.
Custody refers to the legal authority to access or physically possess a client's investment assets. Essentially, this means that the client grants permission to another party to oversee these funds. The custodian is responsible for safeguarding the assets, ensuring they are protected