The various types of banks operating in Nigeria are commercial banks, merchant banks, community banks, development banks, federal mortgage bank, people's banks, co-operative banks and mortgage institutions. Others are the Nigerian Bank for Commerce and Industry, and the Nigerian Agricultural and Co-operative Bank Limited.

Other financial institutions include individuals, bodies, associations or groups of persons, whether corporate or unincorporated, other than the banks licensed under the Banking and Other Financial Institutions Decree, and other institutions exempted under section 51 of the Decree, which carry on the business of discount house, finance company and money brokerage, and whose principal objects include factoring, project financing, equipment leasing, debit administration, fund management, private ledger services, investment management, local purchase order financing, export finance, project consultancy, financial consultancy, pension fund management, and such other business as the Central Bank of Nigeria may, from time to time, designate.


No foreign bank can carry on banking business in Nigeria except it is duly incorporated in Nigeria under the Companies and Allied Matters Act, 1990, and holds a valid banking licence issued by the Central Bank of Nigeria. No foreign bank may operate a representative office in Nigeria, except with the approval of the Central Bank of Nigeria. A foreign bank may, however, acquire shares in existing banks or go into joint venture partnership as a shareholder in an existing bank, subject to prior approval from the Minister of Finance.

This article is intended to provide a general guide to the subject matter and should NOT be treated as legal advice. Specific legal advice should be sought by you about your particular case and special circumstances.

For further information/enquiries, please contact Patrick Abuka on Tel: (234)1-263 4656, 1-263 3024, 1-263 1708, 1-263 3512, 1-263 5115, 1-263 4553 or Fax No: (234) 1-263 1687, 1-263 5189

You may also wish to read through related material on 'Legal Aspects of Investing in Nigeria' provided by Abuka, Ajegbo, Ilogu & Nwaogu. You can view the entire archive via the Internet on Business Monitor Online (http://www.mondaq.com), or via your online provider by entering "Abuka, Ajegbo, Ilogu & Nwaogu" and "Business Monitor" as a free text search.