Banking and Finance

BANKING AND FINANCE DEVELOPMENT OF FINANCIAL INSTITUTIONS

(NIDB) – Nigerian Industrial Development Bank
Established 1964.
Provides credit and other facilities to industries, medium and large scale enterprises.

(NBCI) – Nigerian Bank for commerce and Industry
Established 1973.
Develops National Enterprise in small and medium scale.
Sources of funds are subventions from the Federal govt. and CBN through penalties imposed on commercial and merchant banks for credit short-falls.
(NACB) – Nigerian Agricultural and Cooperative Bank (NACB)
Established mainly to finance Agricultural development projects & allied industries.
Sources its funds from govt. subventions and credit short-falls.
(UDB) – Urban Development Bank
Established in 1992
Provides financial resources to the public and private sector for the development of urban dwelling, mass transportation and public utilities.

BANKING AND FINANCE RECENT DEVELOPMENTS IN NIGERIA

A computerized trading system has been introduced in the Nigeria Stock Exchange to facilitate trading on the floor of the Exchange and enhance processing and settlement of transactions and facilitate the internationalization of the Exchange. The promulgation of the failed Banks (Recovery of debt) and financial Malpractice in Banks Decree No.18

Money Laundering Decree – focused on preventing drug money and other illegally acquired assets from entering the financial system. NIPC Commission - empowered to register enterprises where foreign participation is permitted and to allow them to buy shares of any Nigerian enterprise.

The Foreign Exchange Decree established an autonomous foreign exchange market. The decree provides for any convertible foreign currency to be traded in the market. It allows individuals, resident in or outside Nigeria, to invest Nigeria.

The Nigeria Deposit Insurance Corporation Decree 22 of 1988 was amended to give more powers to the Corporation to deal with insured banks and to act independent of the CBN on some matters affecting problem banks.