AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Banking in Nigeria began in 1892 when the African Banking Corporation opened in Lagos, followed in 1894 by the Bank of British West Africa, the forerunner of First Bank. The Central Bank of Nigeria opened in 1959; banks multiplied after deregulation in 1986, many failed in the 1990s, consolidation cut 89 banks to 25 by 2006, and a new recapitalisation ran from 2024 to March 2026.
This page sets out the main periods in Nigerian banking, with dates, so that the sequence can be quoted. It covers commercial banking; microfinance and payment banks are touched on where they matter to the story.
Nigerian banking timeline (as of October 2026)
| Year | Event |
|---|---|
| 1892 | African Banking Corporation opens in Lagos |
| 1894 | Bank of British West Africa (BBWA) established; later Standard Bank of Nigeria, then First Bank of Nigeria |
| 1917 | Colonial Bank opens in Nigeria; later part of Barclays (later Union Bank of Nigeria) |
| 1929 | Industrial and Commercial Bank, an early indigenous bank, set up; failed in 1930 |
| 1933 | National Bank of Nigeria founded by Nigerian businessmen |
| 1947 | African Continental Bank founded |
| 1949 | British and French Bank (later United Bank for Africa) begins business in Nigeria |
| 1952 | Banking Ordinance sets the first rules for banks, after a wave of failures of indigenous banks |
| 1958–1959 | CBN Act 1958; CBN begins operations on 1 July 1959 |
| 1970s | Indigenisation: government takes majority stakes in foreign-owned banks |
| 1986 | Structural Adjustment Programme; banking licences liberalised |
| 1991 | Banks and Other Financial Institutions Act (BOFIA) and NDIC deposit insurance in place |
| 1990s | Bank distress; many licences revoked, including a large group liquidated in January 1998 |
| 2001 | Universal banking introduced |
| 2004–2005 | ₦25 billion minimum capital; 89 banks consolidate to 25 |
| 2009 | CBN rescues eight banks and replaces their management |
| 2010 | AMCON set up to buy bad loans; universal banking scrapped and new licence categories introduced |
| 2011–2012 | Nationalised bridge banks and acquisitions of rescued banks |
| 2020 | BOFIA 2020 replaces the 1991 Act |
| 2024–2026 | New minimum capital (₦500 billion for international commercial banks), deadline 31 March 2026 |
Colonial and early indigenous banks, 1892 to 1959
The first banks served British trading houses and the colonial government. The African Banking Corporation opened in Lagos in 1892; the Bank of British West Africa, founded in 1894, took over much of its business and handled the issue of silver coin for the colony. Barclays (through the Colonial Bank) and the British and French Bank followed. These banks lent mostly to expatriate firms.
Nigerians set up their own banks from 1929. Many collapsed within a few years because there was no banking law, little capital and no lender of last resort. The National Bank of Nigeria (1933) and African Continental Bank (1947) were among the survivors. A wave of failures in the early 1950s led to the 1952 Banking Ordinance, the first banking law, and later to the creation of the CBN, which opened in 1959.
Independence, indigenisation and deregulation, 1960 to 1999
After independence the federal and state governments acquired stakes in banks, and in the 1970s indigenisation decrees required majority Nigerian ownership of the large foreign banks. The Structural Adjustment Programme of 1986 freed interest and exchange rates and made licences easier to obtain. The number of banks rose quickly into the 1990s, many of them small and lightly capitalised.
Weak supervision, insider lending and a hard economy followed. The 1991 BOFIA strengthened the CBN's powers, and the Nigeria Deposit Insurance Corporation, set up in 1988, began paying depositors of failed banks. A large group of distressed banks had their licences revoked in the 1990s, including those liquidated in January 1998. See our NDIC history.
Universal banking, consolidation and the 2009 crisis, 2000 to 2012
Universal banking from 2001 let banks combine commercial and investment activities. In July 2004 Governor Charles Soludo announced that banks must hold ₦25 billion in shareholders' funds by 31 December 2005. Banks merged, raised capital on the stock exchange, or lost their licences; 89 banks became 25. Our 2005 consolidation explainer lists them.
Rapid growth in margin lending and oil-sector loans then left several banks exposed when the stock market fell in 2008. In 2009 Governor Sanusi Lamido Sanusi's CBN removed the leadership of eight banks and injected public money. The Asset Management Corporation of Nigeria (AMCON) was created in 2010 to buy bad loans. In 2011 three rescued banks became bridge banks (Mainstreet, Keystone and Enterprise), and others were acquired by stronger banks. The CBN also replaced universal banking with separate licence types: commercial (international, national or regional), merchant and specialised banks.
Fintech and the second recapitalisation, 2013 to 2026
- Payments: instant transfers through NIBSS (NIP), the BVN from 2014 and the growth of mobile money and agent banking changed how Nigerians use banks. See our history of Nigerian fintech.
- New licence types: non-interest banks (Jaiz Bank was the first full-fledged one, in 2012), payment service banks (from 2018 guidelines) and a larger microfinance sector.
- BOFIA 2020: replaced the 1991 Act, with stronger CBN powers over failing banks and debt recovery.
- Recapitalisation: in March 2024 the CBN set new minimum capital requirements, measured as paid-up capital and share premium only, with a deadline of 31 March 2026. Our recapitalisation tracker covers the rules and outcomes.
- Failures: the CBN revoked Heritage Bank's licence in June 2024, the first commercial bank closure in years; the NDIC began paying insured depositors.
How we put this together
Dates are from the CBN's published history of banking, CBN and NDIC annual reports, bank corporate histories and the texts of the 1952 Ordinance, BOFIA 1991 and BOFIA 2020. We have not counted the number of banks in each year beyond the 89 and 25 figures for 2004 and 2006, because CBN totals change with the date of measurement.
Questions people ask
What was the first bank in Nigeria?
The African Banking Corporation, which opened in Lagos in 1892. The Bank of British West Africa (1894) is the forerunner of First Bank, the oldest bank still operating.
When was the CBN established?
The CBN Act was passed in 1958 and the bank began operations on 1 July 1959.
How many banks were there before consolidation?
89 banks in 2004. After the ₦25 billion minimum capital deadline of 31 December 2005, 25 remained.
What was the first indigenous bank in Nigeria?
The Industrial and Commercial Bank, set up in 1929, failed in 1930. The National Bank of Nigeria, founded in 1933, was the first to last.
Sources
- Central Bank of Nigeria: circulars, press releases and publications · accessed Oct 2026
- Nigeria Deposit Insurance Corporation · accessed Oct 2026
- Asset Management Corporation of Nigeria · accessed Oct 2026
- BOFIA 1991 and 2020, Banking Ordinance 1952 (Laws of the Federation, PLAC) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.