The full list of development banks in Nigeria

What are development banks in Nigeria?

Development banks are banks specifically set up to provide infrastructural facilities in the form of medium and long term capital, to both public and private sector industries.

The major objective here to promote industrial growth, revive dying units in the country, create more employment opportunities, promote more self-employment projects, and more.

This article is a section of our updated list of banks in Nigeria and their head offices as it covers the latest updates from the CBN.

NOTE: There are two types of development banks namely; community development banks and regional development banks.

Nigerian development banks

Community development banks are local banks that deal primarily with individuals and small organizations in their immediate area.

They are private, non-government institutions and may be affiliated with commercial banks.

Regional development banks, also known as multilateral development banks, operate in various parts of the world through the support of national governments.

The two types have little in common from an organizational point of view, but they share the common goal of combating poverty and economic hardship by infusing capital into local economies.

So, How many development banks are in Nigeria? There are 6 development finance institutions in Nigeria. Check the list below:

List of Development Banks In Nigeria

1. Bank of Agriculture

BOA’s history can be traced to the establishment of the Nigerian Agriculture Bank (NAB) in 1973.

Though established in that year, BOA doesn’t stand a chance with any of Nigeria’s top 10 oldest banks, when it comes to years of existence.

development Bank of agriculture BOA

NAB was a government initiative to fund agriculture development projects in the country.

The major focus was small-scale farm holders that may not have enough collateral to obtain credit facilities from commercial banks.

Bank of Agriculture is a Nigerian government-sponsored bank that provides credit facilities to both small and large scale farmers and small businesses within rural areas.

An outcome of a restructuring of government-sponsored microcredit institutions, the bank was formed in 2000 and assumed the assets of the National Agriculture and Cooperative Bank, People’s Bank and the Family Economic Advancement Project.

  • Date of establishment: 1973
  • Authorization: National
  • Headquarters: 13 NERDC Rd, Agidingbi, Ikeja.
  • Number of branches: 36
  • Official website: www.boanig.com
  • Contact email: tudunwadabr@boanig.com

2. Bank of Industry

Bank of Industry limited is the oldest and largest Development Finance Institution (DFI) currently operating in Nigeria.

Nigeria bank of industry

It is owned by the Ministry of Finance Incorporated (MOFI) Nigeria (94.80%), the Central Bank of Nigeria (CBN) (5.19%) and private shareholders (0.01%).

The bank has been instrumental in administering the ₦300 billion Power and Aviation Intervention Fund.

Also, it has administered ₦50 billion Cotton, Textile and Garments Intervention Fund from the CBN.

Also is the $200 million Nigerian Content Intervention fund (NCI Fund), ₦2.5 billion Nigerian Artisanal and Small-Scale Miners (ASM) Finance Support Fund amongst other funds.

BOI also manages and disburses the Government Enterprise and Empowerment Program (GEEP), one of a number of social intervention programmes introduced by the Federal Government of Nigeria.

The bank generates a Net income of ₦14.57 billion (2016), has Total assets worth ₦682.97 billion (2016) and the Number of employees was at 335 (2016).

  • Date of establishment: 1959
  • Authorization: National
  • Headquarters: 23 Marina Street, P.M.B 12855, Lagos Island, Lagos.
  • Total number of branches: 2
  • Official website: www.boi.ng.
  • Contact email: customercare@boi.ng

3. Nigeria Export and Import Bank

The Nigerian Export-Import Bank (NEXIM) is an export credit agency in Nigeria, established in 1991. It is one of the development banks in Nigeria.

NEXIM - Nigerian import and export bank

The bank was established by the Federal Government of Nigeria with Act 38 of 1991 to replace the Nigerian Export Credit Guarantee & Insurance Corporation.

It provides export credit card guarantees and export credit insurance for exports of Nigerian commodities and services within and outside West Africa.

In 2014 it had a capacity of $39.5 billion in credit and securities for Nigeria’s non-oil exports.

  • Date of establishment: 1991
  • Authorization: National
  • Headquarters: NEXIM House Plot 975 Cadastral Zone AOL, Central Business District, P.M.B. 276, Garki, Abuja, Nigeria.
  • Total number of branches: 8
  • Official website: www.neximbank.com.ng
  • Contact email: neximabj@neximbank.com.ng

4. Federal Mortgage Bank of Nigeria

Federal Mortgage Bank of Nigeria was founded by the Federal Government of Nigeria in 1977 to replace the Nigerian Building Society. It is one of the Mortgage Banks in Nigeria.

Federal mortgage bank of Nigeria

Between 1978 and 1985, it was the only mortgage institution in Nigeria.

According to the constitution of Nigeria, the bank was established to meet the housing needs of all citizens of the country.

It is regarded as the apex mortgage finance institution in the country and regulates the activities of primary mortgage loan originators.

  • Date of establishment: 1977
  • Authorization: National
  • Headquarters: Federal Mortgage Bank of Nigeria, 266 Cadastral AO, Central Business District, PMB 2273 Garki Abuja. Nigeria
  • Total number of branches: 51
  • Official website: www.fmbn.gov.ng
  • Contact email: info@fmbn.gov.ng

5. National Economic Reconstruction Fund (NERFUND)

On the list of development banks in Nigeria is the National Economic Reconstruction Fund (NERFUND).

National economic reconstruction fund

NERFUND was set up to provide needed medium – to long-term financing to viable Small and Medium-scale production enterprises.

The grand objectives are to increase the quantum of goods and services available for local consumption and export, provide needed employment, expand our production base and add value to the economy. 

In the words of the NERFUN President, “the NERFUND is not another cake-sharing exercise. It is designed to aid in the cake-baking process, and as such, fund disbursements by the NERFUND will be based on competitive efficiency”. 

So far, the NERFUND has approved loans for one thousand four hundred and ninety-seven projects, valued at over five billion naira (N5b).

Related: Full list of merged banks in Nigeria

6. The Infrastructure Bank

Another development bank in Nigeria is the Infrastructure bank.

Infrastructure development bank in Nigeria

The Infrastructure Bank Plc was established in 1992 under decree No. 51 of the 1992 constitution of the Federal Republic of Nigeria.

It is dedicated to providing financial solutions to support key long term infrastructure projects.

This includes transportation infrastructure, municipal common services, mass housing and district development, solid waste management, and water provision, and power and renewable energy projects.

The Infrastructure Bank Plc has a unique ownership structure.

It is majorly owned by the private sector but also has the Federal Government, State Governments and Local Governments as well as the Nigeria Labour Congress as shareholders.

The Bank is thus a government-sponsored but private sector-led development finance institution.

Summary of Development Banks In Nigeria

The roles of development banks in every country can’t be overemphasized. The same is true for Nigeria.

These banks are filling major financing gaps. They are also a tool for alleviating constraints on investment in infrastructure and MSMEs.

Development banks in Nigeria can rightly be called a financial system that serves society.

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