Former CEO of Diamond Bank Plc, Uzoma Dozie, has said the 2019 merger between Diamond Bank and Access Bank was the right strategic decision, citing market realities, capital requirements and long-term sustainability.
Dozie made the remarks while speaking on a Live Audience edition of Drinks & Mics podcast, which is to air by 6 pm on Friday, on Naijaonpoint YouTube channel.
He reflected on the thinking behind the merger, six years after it reshaped Nigeria’s banking landscape.
The merger received final regulatory approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) in March 2019.
Following the transaction, Access Bank Plc emerged as the largest bank in Africa by customer base, significantly strengthening its retail banking footprint while consolidating its position in corporate banking.
Explaining the rationale behind the decision, Dozie said the leadership of Diamond Bank assessed the future relevance of the institution in a rapidly evolving banking environment.
“You look at it from, where are we going to be in the next five years?” he said.
“And even if we were the best at what we were, we won’t still be relevant. Now if you look at the market, at that time, you had tier one and tier two.”
Dozie noted that Diamond Bank was firmly in the tier-two category, despite its strong retail banking capabilities.
“So we were tier two, but we were a great retail bank, fantastic retail bank. But in three or five years’ time, is the market going to say… with any consolidation, will it still be a relevant player?” he asked.
According to Dozie, the banking sector was already moving in a direction where scale and access to capital were becoming decisive advantages.
“Because in the end, the market was moving towards the bigger you are, the better resources were allocated to you, and we didn’t see that,” he said.
He explained that combining Diamond Bank’s retail strength with Access Bank’s corporate banking dominance created a complementary structure.
“If we could complement an organization that was very good at corporate and retail, then you get a lot of value,” he said.
“And it means that the synergies are actually better because that means there will be less job losses. You complement on different sides.”
Dozie also pointed to shareholder considerations and capital flows as major factors behind the decision.
Dozie also pointed to shareholder considerations and capital flows as major factors behind the decision.
“From a shareholder perspective, big bank,” he said.
“In the end, capital goes to where people think that the future is. And the future… you can see even now, the future is in digital, but also in big capital.”
He stressed that size remains a critical determinant of competitiveness in the banking industry.
Dozie said subsequent developments, including the COVID-19 pandemic, further validated the decision to merge.
“Don’t forget, a year after that, you had COVID,” he said.
“Now, look at the market size of the tier-two banks compared to tier one after COVID — we made the right decision.”