THE ESTABLISHMENT STORY OF FIRST BANK OF NIGERIA

 

The history of First Bank of Nigeria, the country's oldest and largest financial institution, dates back to 1894 when it was established as the Bank of British West Africa (BBWA). The bank was initially set up to cater to the financial needs of the British colonial government and its citizens in the West African region. However, over the years, it has evolved into a major player in the Nigerian banking sector and has contributed significantly to the country's economic growth and development.

The establishment of the BBWA was a result of the efforts of Alfred Lewis Jones, a shipping magnate who saw the need for a bank to facilitate trade and other commercial activities in the British colonies in West Africa. Jones, along with other investors, founded the bank with a capital of £12,000, which was a considerable amount of money at the time.

The bank's first branch was opened in the city of Lagos, which was the capital of British Nigeria, and it quickly gained popularity among the local merchants and traders. The bank's services included accepting deposits, granting loans, and providing currency exchange facilities, which were crucial for the smooth functioning of the colonial economy.

In 1896, the BBWA expanded its operations to the city of Calabar, and by 1899, it had opened branches in other major cities of the British colonies, including Accra, Freetown, and Bathurst (now Banjul). This expansion was in line with the bank's vision of becoming the leading financial institution in the region.

In 1917, the BBWA was renamed the Bank of West Africa (BWA) to reflect its growing presence and influence in the entire West African region. The bank continued to grow and expand, and by the 1950s, it had become one of the largest banks in Africa, with operations in several countries, including Nigeria, Ghana, Sierra Leone, and the Gambia.

With the independence of Nigeria in 1960, the BWA became a wholly Nigerian-owned bank, and the Nigerian government became a major shareholder. This move was a significant step towards the indigenization of the country's banking sector and reflected the government's commitment to promoting local businesses.

In 1969, the BWA merged with its sister bank, the Bank of Nigeria (est. 1933), to form the United Bank for Africa (UBA). However, the merger was short-lived as the Nigerian government, through its Indigenization Decree of 1972, required foreign banks to divest their majority shareholding in local banks. As a result, the BWA's Nigerian shareholders acquired the bank's majority shares, and it was renamed First Bank of Nigeria Limited.

Since then, First Bank of Nigeria has continued to grow and expand its operations, both locally and internationally. In 2012, the bank became the first Nigerian bank to be listed on the London Stock Exchange, further solidifying its position as a leading financial institution in Africa.

Today, First Bank of Nigeria has over 750 branches and more than 10 million customers, making it the largest financial institution in the country. It offers a wide range of financial services, including corporate and retail banking, investment banking, and asset management, to its diverse customer base.

The bank has also played a significant role in promoting financial inclusion in Nigeria through its innovative products and services, such as its mobile banking platform, FirstMobile, and its agent banking network, Firstmonie. These initiatives have made banking more accessible to the unbanked population and have contributed to the country's financial inclusion goals.

In conclusion, the establishment story of First Bank of Nigeria is one of determination, resilience, and growth. From its humble beginnings as a colonial bank, it has become a household name in Nigeria and a major player in Africa's banking sector. As the bank celebrates its 127th anniversary this year, it continues to uphold its legacy of excellence and remains committed to driving economic growth and development in Nigeria and beyond.