Diamond Bank Nigeria is the ninth largest bank in Nigeria. It has a 5% market share and provides a wide range of banking services to the local population. The bank has a strong focus on providing access to finance for small and medium sized companies, which are often underserved by financial institutions in Nigeria.

The capital from CDC was used to substantially expand the number of branches of Diamond Bank. At the time of the investments by CDC’s fund managers Actis and Canadian Investment Fund in 2007, Diamond Bank had 96 branches and 2283 employees. By the end of 2008, the bank had expanded to 169 branches and 2523 employees.

Diamond Bank won the ‘Most Improved Bank’ award in Nigeria in 2008 and ‘Bank of the Year’ award in January 2009. Diamond Bank Benin won the ‘Best Bank in Benin’ award in 2007. Diamond Bank is now looking to expand its operations into Togo, Senegal and Cóte d’Ivoire, which are among the poor countries in Africa traditionally underserved by financial institutions.

Diamond Bank Nigeria actively contributes to the local community through financial support to healthcare projects. Its activities include:

• Funding a project to eliminate all forms of avoidable blindness. This project provides free eye tests,  glasses and where necessary surgery, and
• Supporting the Nigerian Business Coalition against AIDS.  This Nigerian NGO is a part of a global NGO network consisting of companies committed to provide leadership in the national strategy and response to the devastating effects of HIV/AIDS.

With assistance from Actis, one of the two managers that invested in Diamond Bank on CDC’s behalf, Diamond Bank has strengthened its board, and continued to develop its corporate governance practices in line with international best practice.

With large reserves of human capital and its oil resources, Nigeria has the potential to build a strong economy and reduce poverty significantly. This will require an expansion of the non-oil sectors to generate jobs and expand access to good and services. A sound banking sector and access to finance is vital for private sector development. Diamond Bank is set to continue its expansion of banking services to the help businesses across Nigeria and other West African countries grow.

1 From year-end 2008, except for when stated otherwise
2 This represents CDC’s total investment in Diamond Bank. US$34m invested by Actis. CDC’s investment in Actis Africa Fund II is US$330m; total fund size is US$350m, US$20m invested by Canada investment Fund for Africa. CDC’s investment in Canadian Investment Fund for Africa is US$20m; total fund size is US$211.3m. CDC invested US$39.25 directly in Diamond Bank.
3 2007-2008