What are development banks in Nigeria? Development banks are institutions designed primarily to offer medium- and long-term finance to both public and private sector businesses in order to support their infrastructure needs.
The main goals in this case are to encourage industrial development, revitalize failing regions of the nation, increase employment opportunities, encourage more initiatives that support self-employment, 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.
Community development banks: are neighborhood financial institutions that primarily serve local residents and small businesses.
They are non-governmental, private organizations that could have ties to 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.
NAB was a government program that provided funding for agricultural development initiatives around the nation.
Small-scale farm owners who might not have adequate collateral to secure credit lines from big banks were the main focus.
A government-sponsored bank in Nigeria called Bank of Agriculture offers lending services to both small and large-scale farmers as well as small enterprises in rural areas.
The bank was established in 2000 as a result of a restructuring of government-sponsored microcredit organizations. It took over the assets of the Family Economic Advancement Project, People’s Bank, and National Agriculture and Cooperative Bank.
- 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
Related: Top 10 Best Mobile banking Apps in Nigeria
2. Bank of Industry
Bank of Industry limited is the oldest and largest Development Finance Institution (DFI) currently operating in Nigeria.
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.
Additional monies include the $2 billion Nigerian Artisanal and Small-Scale Miners (ASM) Finance Support Fund and the $200 million Nigerian Content Intervention Fund (NCI Fund).
Another social intervention initiative launched by the Federal Government of Nigeria, the Government Enterprise and Empowerment Program (GEEP), is managed and funded by BOI.
The bank has total assets worth 682.97 billion (2016), a net income of 14.57 billion (2016), and 335 employees as of 2016. (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.
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.
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).
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.
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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