Nigerian banks leverage social media influencers to drive rights issues amid CBN capital requirements

In a bid to meet the new capital requirements set by the Central Bank of Nigeria (CBN), prominent Nigerian financial institutions, including Access Bank, Guaranty Trust Holding Company (GTCO) Plc, and Fidelity Bank Plc, have strategically turned to social media influencers to promote their ongoing Rights Issues and public offerings.

This move reflects the growing importance of social media in advertising and marketing, especially within the financial sector.

Access Holdings, the parent company of Access Bank—Nigeria’s largest bank by assets—has been particularly aggressive in its social media campaigns, enlisting influencers to bolster its N350 billion rights issue. The campaign has seen widespread use of hashtags like ‘#AccessTheFuture’ and ‘#InvestInAccess,’ which have trended across the platform X (formerly Twitter). Influencers with significant followings, particularly those with over 10,000 followers, have been actively involved, indicating a coordinated paid campaign.

Segun Adams, a Lagos-based financial analyst, commented on this trend, stating, “These banks are tapping into the social media space to attract investments from retail investors who may not be familiar with the complexities of the equities market.” He noted that in a smartphone-dominated world, influencers play a critical role in shaping consumer preferences, making them invaluable in promoting investment opportunities.

GTCO Plc has also embraced this trend, collaborating with Nigerian musician Cobhams Asuquo, who released a three-minute audio titled ‘A slice of orange’ in July. The song highlights the benefits of the holding company’s offer, and since its release, hashtags such as #sliceoforange, #InvestinGTCO, and #GTCOPublicoffer have trended across social media platforms, showcasing the effectiveness of this marketing approach.

This shift towards influencer-driven campaigns marks a significant change in how Nigerian banks engage with potential investors. The use of social media is particularly timely, given that out of 103 million internet users in Nigeria, 36.75 million were active on social media as of January 2024, according to Datareportal.