The Development of Banking in Nigeria
The development of banking in Nigeria primarily aimed at assisting the development of commerce and industry in Nigeria as well as to assist the colonial government. The operation of banks did not start in Nigeria until 1872 when African Banking Corporation was established. The bank of West Africa was established in 1894 in Nigeria which later became known as Bank of British West African Limited, the name was changed to Standard Bank of Nigeria, which is now known as First Bank of Nigeria PLC, in 1979.
The sole authority of financial management in west Africa was vested on the West Africa currency board (WACB) that was established in 1912. The (WACB) used its subsidiary the bank of British West Africa to carry out the banking function in British West African countries. (WACB) functions were similar to the work of the recent central bank printing minting and circulation in British West Africa Limited. After the independence, the (WACB) was abolished and was replaced by the countries central banks.
Industrial and commercial bank was one of the first indigenous banks in Nigeria. It was established in 1929. Barclays Bank DCQ now Union Bank PLC. was set up in 1917 in Nigeria. And in 1949 the British and French Bank now United Bank PLC (UBA) was established in Nigeria. Other indigenous banks were the National bank, African continental Bank, Wema Bank, Bank of the North, etc. The establishment of all these banks is to cater to the business needs of Nigerians as well as assisting the early self-government in Nigeria.
In Nigeria the following types of financial institutions can be identified.
- Traditional financial institution
- Commercial banks
- The central banks
- Merchant banks
- Development banks
- The federal mortgage banks
- Insurance companies
- The Stock Exchange