Examining the Factors Influencing the International Expansion of Nigerian Banks

Abstract

Evidence suggests a growing expansion of Nigerian banks into international markets. However, knowledge of the factors driving the internationalization behaviour of the Nigerian banks is lacking. The aim of this study was to identify and explain factors that drive Nigerian banks to venture into foreign markets. Five Nigerian banks were purposefully sampled for the study. The findings show that foreign market entry of Nigerian banks is driven primarily by the banking sector reforms in Nigeria, a shift in the strategic scope of the banks, and a desire to exploit tangible and intangible assets in less developed but profitable banking markets in Sub-Saharan Africa. The findings provide useful insights for business leaders, policy makers and academics regarding forces facilitating internationalization of Nigerian banks to Sub-Saharan African markets.