In
Nigeria, banking came with the advent of the British Colonists.

The
introduction of the first modern banking dated back to 1992 when the African
banking corporation was established in Lagos at the invitation of elder
demporter and company.

African
Banking Corporation was based in South Africa but merely opened a branch office
in Lagos to finance the shipping business of elder deporter company who was
operating stream ship services between liver pool and the West Coast of Africa.

Probably,
as a result of the good performance of the banking corporation another bank
opened its branch office in Lagos in 1894.

The
bank was the British West Africa bank now known as first bank Nigeria plc which
was registered in London in 1892 with and authorized capital of 100,000
pounds. 

This
bank enjoyed the monopoly over banking business in Nigeria until 1916.

Until
this date, however the British silver currency in West Africa as issued by the
West African Currency board, which was established in 1912.

The
bank of British west Africa remained dominant in the field until 1916 when the
Colonial bank which was mere aggressive in the business of banking was
established.

As
a result of its dynamism, the bank opened fifteen branches within four years of
its establishment in West Africa.

In
1925, the assets and liabilities of this bank were taken over by a consortium
of banks comprising Barclays bank, Anglo Egyptian bank and the National bank of
South Africa to from a new bank named Barclays bank, dominion, Colonial and
over seas (D.O).

This
new bank had to change its name and late to Union bank of Nigeria plc.

Other
expatriate bank such as united bank for Africa (UBA), bank of India bank of
America and chase innattant bank were later introduced into Nigeria.

The
colonial government and businessmen established these banks and on such, they
were mainly catering for the interest of expatriate the indigenous men and
women and their enterprises were severally discriminated against.

This
discriminatory attitude of these foreign banks led to the first known protest
by the Nigerian business community.

This
was followed by an appeal from the native traders of Lagos to the financiers
from Great Britain when they visited Lagos in 1912.

The
height of these was the establishment in Lagos of the first indigenous bank in
1929.

This
protest “motivated “bank which was established primarily to moderate the
effects of the discriminatory credit and investment policies of the expatriate
bank against the indigenous enterprises went into liquidation in 1930. In 1931,
another indigenous bank banking institution, the Nigerian merchant bank was
formed with an initial paid up capital of N3, 400.

Its
total deposit did not exceed N5000 before it voluntarily liquidate in
1936.

This
bank had the same managing director with the fist indigenous bank (the
industrial and commercial bank) that liquidate in 1980.

The
features of these banks were largely due to inadequate capital, inexperienced
management and inefficient and crude accounting methods, as well as the
prevailing economic depression at that time.

In
spite of these woeful features the determination of Nigerians to own, control
and manage their own banks continued.

However,
successful indigenous banking efforts in Nigeria thus began with the
establishment of the National bank of Nigeria limited in 1993.

The
bank started with a normal capital of N20000 and paid up capital grew
from N2, 046 in 1936 to N29, 108 in 1946.

The
next successful established indigenous bank founded by Dr. Nnamdi Azikiwe in
1947.

Other
successful indigenous banks were established after wards.

1.4.   
STATEMENT
OF PROBLEM