Most Popular Bank in Nigeria – Hey there, have you been wondering which of the banks in Nigeria is being talked about the most or which bank in Nigeria has the people’s minds?Yes, there is a bank that at least 70% of the people feel they are safe with. There were times people were having issues with the system when they were merging banks.
This affected most people. But one thing you should get to understand is that what you like is not what another person like.
This means that we all like things differently. We like things separately. Noting that let’s briefly talk about the Nigerian banking system.
The Nigerian Banking System
The Nigerian government has the banking system in Nigeria structured into six different levels. From the highest which is
- Central Bank of Nigeria
- Deposit money banks
- Merchant banks
- Development finance institutions
- Microfinance banks
- Mortgage banks
Central Bank of Nigeria
This is like the mother bank of all the banks in Nigeria. Headquarters in Abuja FCT
The central bank of Nigeria is the bank that is in charge of the financial administration/control of the financial sector of the country.
The central bank of Nigeria is a legally accepted body that is charged with the powers and duties to operate, and control the finances of the country in line or guidance with the rules and regulations of the constitution.
The central bank of Nigeria has the following objectives
- They ensure the monetary and price stability
- They ensure that we have a legally accepted currency in Nigeria
- They maintain all the external reserves to protect the international value often legal tender currency we have,
- They are also obligated to ensure that they promote a sound financial system in Nigeria
- Lastly, they are the ones who acts as a banker and provide economic and financial advice to the government (both state and federal government)
Deposit Money Banks
This is not just one bank but a group of banks that accepts transfers as deposit, and savings and also ensure withdrawal.
The deposit money banks have three different bank deposit accounts which include
- savings account
- Current accounts
- Fixed deposit account
The major objectives of this kind of bank include collecting funds from customers, productive investments from clients,s and distribution of loans to prospective clients that are eligible after application.
Currently, we have a number of 32 money deposit banks in Nigeria and out of that 32, we have 3 that are noninterest banks.
Merchant banks
These are banks that are not for deposits but their main specialty is international trade. The main purpose of merchant banks apart from specializing in international trade is
- Making provision of loans services to its clients
- They serve as an adviser to the government or high-net-worth individuals or companies
- They are also dealing with fundraising for large cooperation or companies
- They are also in charge of managing securities to enhance the effective value service of investment
Development Finance Institutions
This is a government development bank that also serves as a non-governmental micro-financial organization that gives grants to community development.
They are also responsible for the decentralization of power and the local empowerment. Basically, they are in charge of providing funds to low-capital projects and other lenders who are unable to get funds from commercial banks
Microfinance Banks
This is basically a loan or credit provider. They disburse what is known as microcredit to prospective clients.
They do not disburse more than the amount of money that should be issued at a traditional bank. We can also say they are banks that provide financial services to the low class who cannot meet the requirements of the conventional financial institutions
The different types of microfinance banks we have include
- village savings and Credit associations
- Finance companies
- Fiduciary financial institution
Mortgage Bank of Nigeria
This is a type of bank that specializes in montage loans. They originate and also service mortgage loans. All they do is give the borrowers capital and then collect it back with a certain percentage of interest.
The borrowers repay the money installment ally. Either monthly weekly, or yearly. One can say that the mortgage bank is responsible t supplying a home buyer with the amount of money needed to afford it
Lists of the Most Popular Bank in Nigeria? (Latest Ranking)
The list below gives the most outstanding popular banks in Nigeria.
#1. First Bank of Nigeria
First Bank is one of the oldest and most established banks in Nigeria, with a large customer base and extensive branch network across the country.
It is one of Nigeria’s multinational banks that was founded in 1894. Firstly it was known to be bank of the British West Africa but in 1979 it was renamed the First Bank of Nigeria.
This outstanding bank has its headquarters in Lagos state Nigeria. It has about 700 business outlets operating across the country. It has over 16, 000 employers working for the company.
#2. Guarantee Trust Bank
This is the second on our list of popular banks in Nigeria. It is a public limited company that was established on the 17th of January 1990. Headquartered in Victoria Island Lagos, Nigeria.
Apart from Nigeria, it has also served in areas like Cote d’Ivoire, Liberia, Gambia, Ghana, Rwanda, Tanzania, Uganda, and the united kingdom.
It features retail banking, commercial banking and cooperate banking with an approximate number 10, 000 employees
#3. United Bank of Africa
The united bank of Africa popularly known by its abbreviation UBA is also a public limited company that was established in 1949.
This bank has its headquarters in Lagos Nigeria. With approximately 20,000 employees. They offer different services ranging from Internet banking, mobile banking, wholesale banking, cooperate banking, investment banking, consumer banking, collection, etc.
This bank has served in different countries apart from Nigeria like Africa, Europe, the United States, and Asia.
#4. Access Bank
Owned by access bank group, access bank plc. Is it a bank that was founded in 1989? This is a public bank that offers services like loans, credit cards, savings investments, and mortgages.
With a total of 28,125 workers and different outlets across the country. It has different subsidiaries in Mozambique, Rwanda, Gambia, Kenya, Ghana, South Africa, and the United Kingdom
With more than 42 million active customers this bank stands out to be one of the best banks we have in Nigeria with excellent services
It received its license from the central bank of Nigeria to operate ad so far it is known to be the largest bank in Nigeria because of its large customer base and also the largest bank in Nigeria because of its assets
#5. Zenith Bank
This is one of the most outstanding banks in Africa because of its outstanding features and services. This is a financial institution that was established 34 years ago. 1990 by Jim Ovia
It has its headquarters in Victoria Island Lagos, Nigeria. It has approximately 25,000 employees. And has served not only Nigeria but Ghana, sierra lone, South Africa, the UK, UAE
This bank is listed on the Nigerian stock exchange and on the London stock exchange. Zenith Bank has approximately 500 branches and different business offices across the states and different subsidiaries across Nigeria.
Why Are They Regarded As the Most Popular Bank In Nigeria
The following are the reasons why the above-mentioned banks are regarded as the most popular banks in Nigeria
- Longevity and establishments’ reputation
- Wide branch network
- Innovation and technology
- Strong financial performance
- Customers service satisfaction
- Diversified products offerings
- Cooperate social responsibility
Conclusion
This article covers a brief of the Nigerian banking system, the different banking systems we have, and explanations.
It also covers the five most popular banks in Nigeria. And also gives supporting reasons why they are regarded as the most popular bank in Nigeria.
Frequently Asked Questions
What is the most popular bank in Nigeria?
Some of the well-known and largest banks in Nigeria include First Bank of Nigeria, Guaranty Trust Bank (GTBank), Zenith Bank, Access Bank, and United Bank for Africa (UBA).
How can I determine the popularity of a bank in Nigeria?
You can refer to market research reports, customer reviews, industry rankings, and customer feedback to gauge a bank’s popularity.
Are there other popular banks in Nigeria besides the ones mentioned?
Some notable examples include Stanbic IBTC Bank, Fidelity Bank, Ecobank Nigeria, Union Bank, and Sterling Bank.
The popularity of banks can vary based on different factors and individual preferences.
Does popularity indicate the best bank in Nigeria?
Popularity does not necessarily indicate that a bank is the best in Nigeria. The concept of the “best” bank depends on individual needs and requirements.
While popular banks may have a large customer base and extensive services, it’s important to consider factors such as financial stability, service quality, product offerings, interest rates, fees, convenience, and customer support to determine the best bank for your specific needs.
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