Types Of Banks In Nigeria

For any organization in the country to offer banking services, the organization must have a banking license. An organization offering banking services without a valid license does so illegally and can face the wrath of the Nigerian law. The kind of license possessed by a bank determines which category of banks it falls in. which makes us at NaijaQuest interested in all the types of banks in Nigeria.

In the early years, the Nigerian government used to issue universal banking licenses to banks. The universal banking license is a license that gives bank permission to provide all forms of banking services. However, some years ago, the federal government changed its policy and started issuing specific licenses. This invariably means that a bank with a single specific banking license is not authorized to provide all forms of banking services. In this article about types of banks in Nigeria, the types will be based on the types of specific banking licenses.

1. Savings Bank

Saving Bank is a popular type of bank in Nigeria. The majority of banks in Nigeria have the right to operate as a savings bank. Saving a bank is a type of bank meant to encourage saving culture among citizens of the country. The majority of people own savings accounts. Money saved by customers of a savings bank is often invested in businesses to generate more money.

2. Commercial Bank

A commercial bank is the type of bank meant for businesses. However, the majority of saving banks in Nigeria are also commercial banks. This does not mean that a savings bank license gives savings banks permission to also operate as commercial banks. It’s just that the majority of banks that possess the license to operate as saving banks, also possess a license to operate as commercial banks. Commercial banks offer banking services that revolve around helping businesses. Furthermore, this type of bank also offers loans to businesses.

3. Central / Federal / National Bank

Central Bank is another type of bank in Nigeria. In Nigeria, only one bank possesses the license to operate as a central bank. This bank is the Central Bank of Nigeria. Central banks operate as a bank of banks. They do not offer services directly to the public. Every bank in Nigeria has a tie with the Central Bank of Nigeria. Furthermore, the Central Bank of Nigeria has other financial responsibilities to the country. This bank is a government-owned institution. The chairman of this bank is appointed by the President of the country. The Central Bank of Nigeria is the only bank that has the right to produce Nigerian currencies. Any other bank that does so will be severely dealt with.

4. Exchange Bank

An exchange bank is another type of bank in the country. A good number of saving banks in the country have the license to operate as exchange banks. Exchange banks perform the primary function of remitting money from one country to another.

List Of Banks In Nigeria

Nigeria is a country populated with a good number of banks. There are over 30 banks, and some of them are:

Access Bank (acquired Intercontinental Bank);
Citibank; Diamond Bank;
Ecobank Nigeria (acquired Oceanic Bank);
Fidelity Bank Nigeria; First Bank of Nigeria;
First City Monument Bank (acquired FinBank);
Guaranty Trust Bank;
Heritage Bank Plc (acquired Enterprise Bank and formerly Spring Bank);
Keystone Bank Limited (formerly Bank PHB);
Providus Bank Plc;
Skye Bank (acquired Mainstreet Bank Limited and formerly Afribank Nig Plc);
Stanbic IBTC Bank Nigeria Limited;
Standard Chartered Bank;
Sterling Bank (acquired Equitorial Trust Bank);
Suntrust Bank Nigeria Limited;
Union Bank of Nigeria;
United Bank for Africa;
Unity Bank Plc;
Wema Bank;
Zenith Bank;
Jaiz Bank;
Coronation Merchant Bank;
Rand Merchant Bank;
FBN Merchant Bank Limited;
FSDH Merchant Bank;
Barclays Bank Plc;
Deutsche Bank;
JP Morgan.

Information About Different Types Of Banks In Nigeria

Among all commercial banks In Nigeria, Zenith Bank Plc is the best. Zenith Bank Plc was founded in May 1990 by Jim Ovia. Zenith Bank Plc is not just a Nigerian bank, it is also a multinational bank. Key people at Zenith Plc include Jim Ovia (the Chairman), Peter Amangbo (the Chief Executive Officer), Adaora Umeoji (a DMD), Ebenezer Onyeagwu (another DMD), Oladipo Olusola (an Executive Director), and Umar Ahmed (another Executive Director).

The headquarters of this bank is located at Zenith Heights, Plot 84, Ajose Adeogun Street, Victoria Island, Lagos, Lagos State, Nigeria. Zenith Bank has assets worth over 4.7 trillion NGN. The bank has a good number of subsidiaries namely: Zenith Insurance, Zenith Pension Custodian, Zenith Securities, Zenith Bank Ghana, Zenith Bank UK, Zenith Trust Company, and CyberSpace Networks.

First Bank of Nigeria, also known as First Bank for short, is one of the best Nigerian banks. By deposit, the bank is the largest in the country. First Bank of Nigeria is also considered the best retail bank in Nigeria, a title it has held for years. Furthermore, this bank has the highest number of banking halls in the world country. The bank ranks among the oldest banks in the country. First Bank of Nigeria was founded in 1894 as the Bank of British West Africa. In 1979, it was renamed to First Bank of Nigeria. Just like Zenith Bank Plc, this bank is a multinational bank. It has a presence in a good number of countries including the United Kingdom and the United Arab Emirates.

First Bank of Nigeria has a good number of subsidiaries. Its subsidiaries include FBN Bank (DRC) Formerly Banque International de Credit (BIC) — Kinshasa, the Democratic Republic of the Congo; FBN Bank (China) — Beijing, China; FBN Bank (Ghana) — Accra, Ghana; FBN Bank (Guinea) — Conakry, Guinea; FBN Bank (Senegal) — Dakar; FBN Bank (Sierra Leone) — Freetown, Sierra Leone; FBN Bank (South Africa) — Johannesburg, South Africa; FBN Bank (UAE) — Abu Dhabi, United Arab Emirates; FBN Bank (UK) — London, United Kingdom; FBN Bank (UK/Paris) — Paris, France; First Pension Custodian Limited; FBN Mortgages Limited.

The following are key people at the First Bank of Nigeria: Chairman — Mrs. Ibukun Awosika; Managing Director/CEO — Dr. Adesola Adeduntan; Deputy Managing Director — Mr. Olugbenga Francis Shobo; Executive Director/Public Sector Group — Dauda Lawal; Executive Director, Corporate Banking — Dr. Remi Oni; Independent Non-Executive Director — Dr. (Mrs.) Ijeoma E. Jidenma; Independent Non-Executive Director — Mrs. Olusola Oworu; Non-Executive Director — Lawal Kankia Ibrahim; Non-Executive Director — Ambrose Feese, FCA; Non-Executive Director — Mr. Ebenezer Jolaoso; Non-Executive Director — Obafemi Adedamola Otudeko; Non-Executive Director — Tunde Hassan-Odukale; Non-Executive Director — Ibrahim Dahiru Waziri; Non-Executive Director — Urum Kalu Eke.

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Types Of Banks In Nigeria – Full List and Details