Scribd
Upload
19 views

Scanner

Scan

Uploaded by

hammedabioue70
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
19 views

Scanner

Scan

Uploaded by

hammedabioue70
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

The banking industry in Nigeria started during the colonial era with the establishment

of Colonial Banks, with the primary aim of meeting the commercial needs of the
Colonial Government.[1] The banking system in Nigeria is regulated through
the Central Bank of Nigeria. This apex bank started operation on July 1, 1959.[2]

Background
edit

In 1892, the African Banking Corporation and the Bank of British West Africa, now
the First Bank of Nigeria, were established in Nigeria. In 1925, Due to some
difficulties the bank folded up its activities and the Bank of British West Africa
Limited (BBWA) was established to take over the activities of the African Banking
Corporation. The Bank of British West Africa Limited opened its first branch in
Lagos in 1894; in the later part of the same year the name of the bank was changed to
Standard Bank of Nigeria known as the First Bank of Nigeria Limited [now a public
limited company, PLC. The Anglo-Egyptian Bank and the National Bank of South
Africa gave birth to Barclays Bank in Nigeria. In 1948, the British and French Bank
for Commerce and Industry started operations in Nigeria, which metamorphosed into
the United Bank for Africa.[3] The first domestic bank In Nigeria was established in
1929 and called the Industrial and Commercial Bank. The bank liquidated in 1930 and
was replaced by Mercantile Bank in 1931. The African Continental Bank was created
in 1949 as the only sustainable indigenous bank after the liquidation of the Industrial
and Commercial Bank.[4] The year 1947 shows the emergence of an agricultural bank
called the Nigerian Farmers and Commercial Bank.

The modified universal banking model


edit

In 2010, the Central Bank of Nigeria re-modified the existing universal banking
model that permits a commercial banking license holder to operate in other non-core
banking activities, either directly or indirectly, through designated subsidiaries.[5] The
introduction of this scheme classifies banking licenses into commercial, merchant,
and specialised Development Banking Licenses.[6][7]

Nigeria banking reform


edit

Nigeria banking reform can be divided into two main phases, 2004 and 2009. Each
phase had significant economic effects:
Banking Reform of 2004 and its effect
edit

This reform focused on bank consolidation through the mechanisms of merger and
acquisition.[8] This resulted in the rebasing of commercial banks from ₦2 billion to
₦25 billion, while the 89 existing commercial banks in the country became 25.

The apex bank apart from capitalization also invested in banking automation which
enhances banking returns. The reform established a reporting portal for bank
customers for the purpose of information sharing. Under this reform, deposits from
the public sector and government-owned agencies can be collected by commercial
banks in order to enhance their level of liquidity.[9][10]

Banking Reform of 2009 and its effect


edit

The Asset Management Corporation of NigeriaAMCON was established in 2009 by


the National Assembly of Nigeria.[11] The institution acquires non-performing loans of
commercial banks. The financing of AMCON is composed of a ₦50 billion CBN
fund and 0.3% of total assets of participating commercial banks. It also supports the
implementation of International Financial Reporting Standards (IFRS) for global
reporting compliance in terms of reporting. This reform reviewed the universal
banking model by restricting commercial banks to banking activities only. The reform
also addresses excessive banking interest by the creation of a non-interest bank.[12][13]
[14][15]

Sarah Alade, Deputy Governor of the Central Bank of Nigeria, announced that five
Nigerian bank CEOs were being dismissed in August 2009. Five replacements were
named with immediate effect including Funke Osibodu to lead the Union Bank of
Nigeria and Suzanne Iroche who took over as CEO of FinBank.[16][17]

Anele explained that the product has been rolled out in Nigeria before subsequent
release in other countries where UBA operates.

On her part, Dupe Olusola, UBA’s group head of marketing, said the bank is
committed to empowering its customers to fund their urgent needs. [1]

See also
edit

 Central Bank of Nigeria


 Asset Management Corporation of Nigeria
References
edit

1. ^ Toluwani A. Ajayi. "THE EVOLUTION OF NIGERIAN BANKING SYSTEM, SUPERVISION


AND CURRENT CHALLENGES". Archived from the original on 27 February 2024. Retrieved 29
November 2015.
2. ^ "Central Bank of Nigeria:: History of the CBN". www.cbn.gov.ng. Archived from the
original on 2020-07-27. Retrieved 2020-05-30.
3. ^ Richard L. Sklar (2004). Nigeria political parties: power in an emergent African nation.
Africa World Press. ISBN 9781592212095. Archived from the original on 27 February 2024.
Retrieved 29 October2015.
4. ^ Walter Tessier Newlyn, David Culloden Rowan (1954). Money and banking in British
Colonial Africa: a study of the monetary and banking systems of eight British African territories .
Clarendon Press. ISBN 9780598983749. Archived from the original on 27 February 2024.
Retrieved 29 November 2015.
5. ^ Samule A. Oni. "CIRCULAR ON THE REVIEW OF THE UNIVERSAL BANKING
MODEL" (PDF). Archived (PDF) from the original on 8 December 2015. Retrieved 29
November 2015.
6. ^ Omoh Gabriel. "CBN to introduce three types of banks in 2011". Archived from the
original on 2015-12-08. Retrieved 2015-11-29.
7. ^ Omoh Gabriel. "CBN releases guidelines for new banking model". Vanguard
Newspaper. Archived from the original on 8 December 2015. Retrieved 29 November 2015.
8. ^ Sanusi Lamido Sanusi. "Banking reform and its impact on the Nigerian
economy" (PDF). Archived (PDF) from the original on 4 March 2016. Retrieved 29
November 2015.
9. ^ Abel Ezeoha. "Structural effects of banking industry consolidation in Nigeria: A
review". Journal of Banking Regulation. Palgrave Macmillan. Archived from the original on 13
April 2012. Retrieved 29 November 2015.
10. ^ Duncan Alfor. "Nigerian banking reform: Recent actions and future
prospects". proshare. Archived from the original on 8 December 2015. Retrieved 29
November 2015.
11. ^ Uchechukwu Okoroji. "Nigeria's Banking Reform above the Curve". This Day Live.
Archived from the original on 20 May 2013. Retrieved 29 November 2015.
12. ^ Adekunle. "Jaiz Bank spends N100m on IDP". Vanguard. Archived from the original on 8
December 2015. Retrieved 29 November 2015.
13. ^ Mathias Okwe (11 June 2015). "Jaiz Bank enters profit-making territory, declares
N158m for shareholders". The Guardian. Archived from the original on 26 November 2015.
Retrieved 29 November 2015.
14. ^ BANKING REFORM AND ITS IMPACT ON THE NIGERIAN ECONOMY Archived 2012-10-28
at the Wayback Machine
15. ^ Sanusi, Lamido (2012). BANKING REFORM AND ITS IMPACT ON THE NIGERIAN
ECONOMY. Lagos: Research Dept of the Central Bank of Nigeria. pp. 5–10.
16. ^ CBN sacks 5 banks' directors Archived 2016-02-14 at the Wayback Machine, Gabriel
Omoh and Babajide Komolafe, 14 August 2009, VanguardNGR, Retrieved 23 February 2016
17. ^ "The history and origin of banking in Nigeria". bestmarket.com.ng. Archived from the
original on 27 September 2023. Retrieved 26 February 2024.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy