Some Nigerian banks are now using social media influencers as part of measures to publicise their share offers aimed at meeting the new capital requirements set by the central bank.
Experts say social media is becoming more influential and that leveraging influencers aligns with current technological trends in advertising and marketing.
A review of the marketing strategies of Access Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, and Fidelity Bank Plc for their respective rights issues and public offerings, revealed that Access Holdings leveraged the social media space the most.
Access Holdings, the parent of Nigeria’s largest bank by assets, is employing influencers to promote its N350 billion rights issue.
Segun Adams, a Lagos-based analyst, said influencers are now major drivers of consumer preferences in a smartphone-dominated world.
“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 said.
Between 1952 and 2024, Nigerian banks have undergone 11 phases of recapitalisation. However, the growing adoption of social media has transformed how consumers respond to investment opportunities.
Many finance influencers have posted about Access Bank’s rights issue on social media platform X.
Recently, other X personalities with significant followings have also posted about the rights issue, indicating a paid X campaign. Only accounts with over 10,000 followers have been involved in this campaign.
Hashtags like ‘#AccessTheFuture’ and ‘#InvestInAccess’ have been used across tweets, signifying a Twitter marketing campaign.
An X user identified as MzLayde, who influences for brand said, “I love the intentionality of Access Bank in the banking space.
“Roosevelt Ogbonna, the bank’s MD at the Nigerian Exchange Limited talked about how the bank is focusing on economic power continent where the real banking profit is instead of fully dwelling in weaker places.”
For GTCO, Cobhams Asuquo, a Nigerian Musician released a three-minute audio titled ‘A slice of orange’ in July. This song speaks about the holding company’s offer and its benefits.
Since the release of the song, the #sliceoforange,#InvestinGTCO, and #GTCOPublicoffer, have been the trending hostage attached to the song across all the group’s platforms.
According to Datareportal, out of 103 million internet users in Nigeria, 36.75 million used social media in January 2024.
Subsequently, as social media platforms like Instagram, YouTube, Facebook, Twitter, and TikTok began to gain popularity, 55.4 percent of Nigerians have transitioned from traditional advertising to social media channels.
The crowded digital space has also given more people the avenue to amass a significant number of followers, increasing the number of influencers.
Nigeria has over 17,000 influencers as of last year with audiences ranging from a few thousand to several million, these influencers have become trusted voices that brands can collaborate with, hoping to tap into their fan base.
These influencers earn money as content creators and can also earn from brands looking to leverage their services to promote financial products.
Recall that the Central Bank of Nigeria (CBN) raised the minimum capital requirement for banks to ensure they can take bigger risks, stay afloat during tough times, support various economic sectors, and boost confidence in the banking system,
“To reach a broader audience and meet these requirements, banks are now utilising current technological trends to engage online users with their offerings,” said Ayodeji Ebo, managing director/CBO of Optimus by Afrinvest.
Ebo recalled that the last bank recapitalisation was in 2005 when the minimum capital requirement for national commercial banks was increased from N2.0 billion to N25.0 billion. This reduced the number of banks from 89 to 24.
In the recent recapitalisation process, the CBN raised the minimum capital base for banks with international authorisation at N500 billion.
The apex bank also increased the minimum capital base for commercial banks holding national authorisation to N200 billion, and for those with regional authorisation to N50 billion.
Merchant banks now have a minimum capital requirement of N50 billion, while non-interest banks holding national and regional authorisations must adhere to new minimum requirements of N20 billion and N10 billion, respectively.
Uchenna Uzo, professor of marketing at Lagos Business School (LBS) said influencers only inform but that when it comes to persuading the audience they can’t reach a wider base.
“This is where the banks need to devise other means to attract the client base they need in real-time,” he said.
“Trust in social media influencers has declined. Research indicates that in 2018, the trust level was at 40 percent, but it has now dropped to 18 percent as people have discovered that influencers are sometimes not authentic,” Uzo added.
