-
Significance Of Bank Credit To The Development Of Nigeria Economy
[A CASE STUDY OF UNITED BANK OF AFRICA PLC, ILORIN]
CHAPTER ONE -- [Total Page(s) 3]
Page 1 of 3
-
-
-
CHAPTER ONE
1.0 INTRODUCTION
In a developing country like Nigeria, the significance of bank credit to a firm cannot be overemphasized.
It is therefore necessary that everybody known the roles played by banks through their credit in developing Nigeria firms and the economy of large. Although many of use have heard about bank credit and we pass through the bank on daily basis, rnajority do not know the vital role they played in our fast developing economy. It is therefore pertinent to show fellow Nigerians various types of banks credit that exist and how the investors apply these credits to the development of the nations economy.
In order to succeed in life, a man does not only work hard, but he also looks for means to improve on his work. These are situations whereby a man has all the skills needed to set up a business but does not have the means to the end of the whole show? That is why we feed that it is timely at this point to let people know the investment and now this turn will lead to the development of the nation at large. There are many people who are eager to set up business of there own or improve on the existing one they poses but do not know sources of financing such project. Such people needs to be informed of the requirement and prospect of bank credit.
It is in the light of the above reasons that this subject is chosen. It is hoped that after going through this work, many people who are either to ignorant of the contributions of bank credit to firms and to the nation at large will be adequately educated.
Reader also deserve to know the evolution of the banking system in Nigeria. The researcher not fails to let the readers know the types of credits available in the banking system.
Finally, many educated people do not know the procedures of obtaining bank credits. All the foregoing have therefore influenced and dictated the topic the significance of Bank's credit to the development of Nigeria economy with special references to Unit Bank for Africa Plc.
1.1 HISTORICAL DEVELOPMENT OF COMMERCIAL BANKS
The history of commercial bank in Nigeria date to the take over of a branch of the African Banking Corporation in Lagos by Elder Dempster and company in 1892-
The takeover of this out coast of the African Banking Corporation with head quarters in South African and which \vas established essentially for the importation of silver in1891, its failure to realize this goal to its lived and it was replaced by the British Bank of West Africa (BBWA) in 1893 with $20,000 capital later increased to 3100,000 during the same year. It was registered in London as a limited liability company in March 1894 and the first Lagos branch was opened in the same year other branches were opened in major West African cities like Accra, free town and Bathurst. The bank opened its second Nigerian branch in old Calabar in
1900.
Until 1971 when British Bank of West Africa was toned by another.
Bank, the colonial bank British of West Africa. This bank enjoyed an in challenged sway in the Nigeria commercial Banking scene. Having taken over the Anglo-Africa bank (Bank of Nigeria) 1899-1912. By untrue of this monopoly, BritishBank of West African enjoyed the privileges off supplying silver coins to West African Currency Board system.
The emergence of the colonial bank in 1916 and the taking up of its activities in 1917 broke the monopoly which the British Bank of West Africa enjoyed.
In 1925, the bar days Bank of United Kingdom absorbed the colonial bank and from them on the name become Bar day bank DCO (Dominion Colonial Overseas). This Bank opens its first branch in Lagos in 1917 (it is now known as the Union Bank) soon after, wine other branches were opened.
The Nigeria banking scene was therefore dominated by these two British banks, BBWA, and Bar Days Bank DCO between 1894-1933.
The dominance of these two British banks was challenged in 1948 by the arrival of British and French bank now called United Bank for Africa Pic, (UBA) making it the third expatriate bank to dominate early Nigeria commercial banking.
The foreign bank came principally to render services in connection with international trade, so their relationship at that time was chiefly with the expatriate trading companies and with the government. They largely ignored the development of local African entrepreneur ship.
International Bank for West Africa is one of the late arrival among the expatriate banking Nigeria having been established in 1959, Originally it was known as banquets International Pour Afrogue occidental which has a number of consortiums of French and British banking interest and a principal fmancer of groundnut trade in nieghbouring Niger republic.
CHAPTER ONE -- [Total Page(s) 3]
Page 1 of 3
-
