Nigeria’s banking industry is steeped in history, with some of its oldest institutions dating back over a century. These banks have been instrumental in shaping the country’s financial landscape, offering stability and growth through changing times. The journey of Nigeria’s banking system is marked by resilience, innovation, and adaptation as these financial institutions have grown alongside the nation, supporting its economic progress at every step.
From the colonial era to post-independence, these banks played a key role in driving trade, supporting infrastructure projects, and fostering financial inclusion. As pillars of Nigeria’s financial ecosystem, their long-standing presence continues to inspire trust and credibility, making them cornerstones of the nation’s economy.
In this article, we will dive into the top 10 oldest banks in Nigeria, revealing their establishment years and the unique legacies they’ve built. Each of these institutions has contributed significantly to Nigeria’s economic growth, evolving into powerful brands that transcend borders. Whether you’re a financial enthusiast or simply curious about the history of banking in Nigeria, these banks offer fascinating insights into the country’s economic past and present.
Top 10 Oldest Bank in Nigeria and the Established Year
1. First Bank of Nigeria
Established: 1894
First Bank of Nigeria is not only the oldest bank in Nigeria but also one of the oldest financial institutions in West Africa. It was originally founded as the Bank of British West Africa (BBWA) in 1894 by Sir Alfred Jones, a shipping magnate. The bank’s initial purpose was to serve the British colonial administration and commercial enterprises in the region. It started its operations in Lagos and quickly became the backbone of Nigeria’s banking system, offering services like currency exchange, credit provision, and handling government accounts.
Over the years, First Bank has expanded its services beyond government and corporate clients to individuals, small businesses, and large industries, contributing significantly to Nigeria’s economy. It was instrumental in financing trade between Nigeria and the global market during colonial times and post-independence. Its ability to adapt to changing financial environments has ensured its continued dominance in the Nigerian banking sector.
The bank has maintained its leading position by embracing innovation, offering modern banking solutions like digital banking and international services. With a strong reputation for stability and reliability, First Bank remains one of the most trusted financial institutions in the country. Today, First Bank operates a network of branches across Africa and has a global presence in key financial hubs.
2. Union Bank of Nigeria
Established: 1917
Union Bank of Nigeria has a rich history, originally founded as Colonial Bank in 1917. The bank was established to meet the financial needs of British traders and colonial administrators operating in West Africa at the time. In 1925, the bank became part of the Barclays Bank DCO (Dominion, Colonial, and Overseas), marking the beginning of its transformation into a major player in the Nigerian banking industry.
By 1979, the bank was fully indigenized and renamed Union Bank of Nigeria, following the Nigerian government’s efforts to nationalize foreign businesses and banks. Since then, Union Bank has maintained a prominent role in Nigeria’s financial system, adapting through economic changes and regulatory reforms.
Union Bank has been pivotal in supporting Nigeria’s economic growth, providing a wide range of financial services to individuals, businesses, and government bodies. Known for its solid reputation, the bank became a symbol of financial security and strength, especially during Nigeria’s early post-independence years.
Throughout its existence, Union Bank has been involved in financing large infrastructure projects, offering credit to small and medium-sized enterprises (SMEs), and providing retail banking services to millions of Nigerians. Its wide network of branches across the country has made it accessible to customers in both urban and rural areas. More recently, Union Bank has embraced digital transformation, offering innovative banking solutions to meet the evolving needs of its clients.
3. United Bank for Africa (UBA)
Established: 1949
United Bank for Africa (UBA) was founded in 1949 as British and French Bank Limited (BFB). It started operations in Nigeria as a subsidiary of Banque Nationale de Crédit, a French bank. In 1961, two years after Nigeria’s independence, UBA was incorporated to take over the assets and liabilities of BFB, becoming a fully indigenous bank. This marked the beginning of UBA’s rapid expansion within Nigeria and across Africa.
UBA has since grown to become a leading pan-African bank with subsidiaries in over 20 African countries and offices in London, New York, and Paris. Its expansion beyond Nigeria has been driven by its vision to be the bank of choice for businesses and individuals across Africa.
UBA has played a significant role in financing major sectors of Nigeria’s economy, including agriculture, oil and gas, infrastructure, and telecommunications. It has been a pioneer in introducing innovative banking services, such as the first ATM service in Nigeria and other modern banking technologies.
The bank’s contributions to the African banking sector go beyond Nigeria, as it has positioned itself as a key player in cross-border banking, offering seamless financial services to customers across multiple countries. UBA is known for its commitment to financial inclusion and has developed products tailored to meet the needs of underserved communities. With its robust digital banking platform and extensive reach, UBA continues to shape the future of banking in Nigeria and Africa.
4. Wema Bank
Established: 1945
Wema Bank is one of Nigeria’s oldest indigenous banks, founded in 1945 as Agbonmagbe Bank. It was initially established by Chief Mathew Adekoya Okupe in Ijebu-Ode to serve the financial needs of the local community. In 1969, the bank was rebranded as Wema Bank and became a publicly quoted company on the Nigerian Stock Exchange in 1990. Since then, Wema Bank has continued to grow and evolve, maintaining its place as one of the country’s reputable financial institutions.
Wema Bank gained wide recognition for being Nigeria’s first fully digital bank when it launched ALAT in 2017, a digital banking platform designed to offer seamless banking services to tech-savvy customers. This pioneering move helped redefine how traditional banks operate in Nigeria, bringing modern digital banking solutions to the forefront.
Contributions and Impact:
Wema Bank’s longevity in Nigeria’s banking sector is a testament to its resilience and adaptability. Over the decades, it has offered a wide range of financial products and services that cater to individuals, businesses, and government institutions. The bank has been instrumental in promoting financial inclusion, especially in underserved areas of Nigeria.
The introduction of ALAT marked a significant milestone for the bank, cementing its position as a forward-thinking institution. Wema Bank has continued to thrive by focusing on innovation, customer satisfaction, and the use of technology to improve banking experiences. Through its network of branches and digital platforms, Wema Bank remains committed to serving Nigeria’s diverse population.
5. Zenith Bank
Established: 1990
Zenith Bank, although one of the newer banks on this list, has quickly risen to become one of the largest and most reputable financial institutions in Nigeria. It was founded in 1990 by Jim Ovia, with a vision to create a customer-centric bank that leverages technology to deliver excellent services. From its inception, Zenith Bank has focused on innovation, which has been key to its rapid growth and success.
In 2004, the bank made a significant move by becoming a publicly traded company on the Nigerian Stock Exchange. It expanded beyond Nigeria, establishing subsidiaries in other countries, including Ghana, Sierra Leone, and the United Kingdom. Zenith Bank’s commitment to efficiency, technology-driven operations, and corporate governance has made it a leader in the Nigerian banking industry.
Zenith Bank is widely recognized for setting new standards in Nigerian banking through its aggressive use of technology and service delivery models. It was among the first Nigerian banks to fully embrace online and mobile banking, providing customers with seamless digital banking services. The bank has been a pioneer in the adoption of modern banking practices in Nigeria, from internet banking to cashless transactions.
The bank’s corporate responsibility efforts, particularly in education, health, and community development, have also earned it high praise. Zenith Bank’s ability to continuously innovate, coupled with its customer-focused approach, has solidified its position as one of the most respected and financially sound banks in Nigeria and beyond.
6. Afribank (Now Polaris Bank)
Established: 1959
Afribank, established in 1959, was originally known as the Bank of America Nigeria Limited. It was one of the earliest financial institutions formed to cater to the growing needs of Nigeria’s expanding economy during the post-colonial period. The bank later rebranded as Afribank Nigeria Plc in 1977, following the Nigerian government’s indigenization decree that required foreign companies to reduce their ownership stakes in Nigerian businesses. Afribank became a household name in the country and was well-known for providing reliable banking services to a broad spectrum of clients.
Due to financial challenges in the early 2010s, Afribank was acquired by the Asset Management Corporation of Nigeria (AMCON) and subsequently restructured into Mainstreet Bank. In 2018, Mainstreet Bank was rebranded as Polaris Bank, continuing the legacy of Afribank while offering modern banking solutions to Nigerians.
Afribank played a critical role in the development of Nigeria’s financial infrastructure, especially during the economic boom of the 1970s and 1980s. It supported numerous industrial projects, small and medium enterprises (SMEs), and individuals, helping to drive economic growth in various sectors. Over the years, Afribank built a strong reputation for trustworthiness and a broad reach across the country.
Though Afribank no longer exists in its original form, its legacy continues through Polaris Bank, which is focused on digital transformation and providing accessible banking services. Polaris Bank aims to continue the pioneering spirit of Afribank by serving Nigeria’s diverse financial needs and contributing to economic progress.
7. Sterling Bank
Established: 1960
Sterling Bank traces its origins to Nigerian Acceptances Limited (NAL), which was established in 1960 as Nigeria’s first investment banking institution. The bank was formed to support the growing Nigerian economy by providing merchant banking services that were crucial for industrial and infrastructure development. Over the years, NAL evolved through a series of mergers, most notably with four other banks in 2006, to form what is now known as Sterling Bank.
The mergers brought together NAL, Indo-Nigeria Merchant Bank, Magnum Trust Bank, Trust Bank of Africa, and NBM Bank, combining their strengths to create a more diversified and resilient financial institution. Since then, Sterling Bank has grown into a full-service commercial bank, offering a wide range of banking products and services.
Sterling Bank has been a key player in Nigeria’s financial sector, supporting the development of key industries like oil and gas, agriculture, telecommunications, and power. The bank is also known for its commitment to social responsibility and sustainability, focusing on sectors like education, healthcare, and renewable energy.
In recent years, Sterling Bank has been at the forefront of digital banking innovation, launching various tech-driven financial services to cater to a younger and more mobile-savvy population. With its focus on delivering value and improving customer experiences, Sterling Bank continues to be a strong force in Nigeria’s banking industry.
8. Fidelity Bank
Established: 1988
Fidelity Bank began its operations in 1988 as a merchant bank with a focus on investment and corporate banking. In 1999, it became a commercial bank, expanding its services to include retail and corporate banking. Over the years, Fidelity Bank has grown to become one of the leading financial institutions in Nigeria, known for its stability and customer-focused approach.
In 2005, Fidelity Bank acquired FSB International Bank and Manny Bank, further expanding its network and solidifying its presence in the Nigerian banking landscape. The bank is recognized for its conservative risk management and consistent financial performance, which has enabled it to thrive through various economic cycles in Nigeria.
Fidelity Bank has played a key role in Nigeria’s economic development by providing financing to important sectors like oil and gas, manufacturing, and agriculture. The bank has also been a champion of small and medium enterprises (SMEs), offering tailored products and services to support their growth.
In recent years, Fidelity Bank has invested heavily in digital banking platforms, providing innovative solutions to meet the needs of its diverse customer base. The bank is known for its commitment to excellent customer service, financial inclusion, and empowering businesses across Nigeria.
9. First City Monument Bank (FCMB)
Established: 1982
First City Monument Bank (FCMB) was founded in 1982 by Otunba Subomi Balogun as a merchant bank, initially known as City Securities Limited. It was the first bank in Nigeria to be established without direct government ownership or foreign capital, making it a fully indigenous bank from the outset. In 2001, FCMB transitioned from a merchant bank to a full-fledged commercial bank and has since grown to become one of Nigeria’s leading financial institutions.
FCMB is known for its strong entrepreneurial spirit, which has driven its success in providing innovative financial solutions to individuals, small businesses, and large corporations. Over the years, it has expanded its reach across Nigeria with a network of branches and has maintained a reputation for trust and reliability.
FCMB has been instrumental in promoting financial inclusion in Nigeria, particularly through its support for small and medium enterprises (SMEs). The bank’s emphasis on digital banking has enabled it to reach a broader customer base, especially in underserved areas. FCMB has also made significant contributions to Nigeria’s capital markets, offering investment banking services that have helped to finance major infrastructure projects and business ventures.
The bank remains committed to innovation and service excellence, making it a key player in Nigeria’s evolving financial landscape.
10. Heritage Bank
Established: 1989 (as Societe Generale Bank Nigeria)
Heritage Bank, initially established as Societe Generale Bank Nigeria (SGBN) in 1989, started operations with a focus on providing retail and corporate banking services. However, due to financial challenges, the bank was temporarily closed in the mid-2000s. In 2012, following a restructuring process, the bank was rebranded as Heritage Bank, and it resumed operations with a renewed focus on innovation and customer service.
Heritage Bank prides itself on its heritage of service, innovation, and integrity. Since its rebirth, it has grown steadily, positioning itself as a customer-centric institution that embraces technology to deliver personalized banking services. Heritage Bank operates with a vision of creating, preserving, and transferring wealth across generations.
Heritage Bank has made significant strides in the Nigerian banking industry since its reemergence, providing a wide range of products and services tailored to both individuals and businesses. It is known for supporting the agricultural sector through various financing schemes aimed at boosting food production and agro-processing industries. The bank also focuses on digital banking innovations, offering convenient services through its mobile and online platforms.
Heritage Bank’s contribution to financial inclusion and its support for entrepreneurship and SMEs have been noteworthy, helping to stimulate economic growth and development across Nigeria.
Conclusion
The history of Nigeria’s banking sector is rich with institutions that have not only stood the test of time but also played pivotal roles in the country’s economic development. From the pioneering efforts of First Bank and UBA, to the innovative approaches of Zenith and Heritage Bank, these banks have shaped the financial landscape of Nigeria. Over the decades, they have adapted to changing economic conditions, introduced cutting-edge technologies, and provided essential financial services to millions of Nigerians.
These banks have contributed significantly to the country’s growth by supporting critical sectors such as agriculture, manufacturing, oil and gas, and SMEs. Their resilience, adaptability, and commitment to customer satisfaction have kept them at the forefront of the banking industry. As they continue to evolve, these institutions remain vital to Nigeria’s economic future, building a legacy of financial stability and innovation for generations to come.
