Historical evolution of commercial banks in Nigeria?

1. Indigenous Banking Era:

- Traditional banking practices existed before the colonial era.

- Local money lenders, "Esusu" (rotating savings and credit associations) and indigenous banking systems functioned.

2. Colonial Banking Era (1892-1952):

- Colonial banks dominated the financial landscape, financed trade, and supported colonial expansion.

- Examples: Bank of British West Africa (BBWA), Barclays Bank, Standard Bank, etc.

3. Post-Independence Banking Era (1952-1962):

- Indigenous banks emerged, focusing on local businesses and individuals.

- Examples: National Bank of Nigeria (1952), Bank of Lagos, Industrial Bank, etc.

4. Unified Banking Era (1962-1972):

- Nigerian authorities began implementing reforms to unify the fragmented banking sector.

- Central Bank of Nigeria (CBN) was established as the monetary authority.

5. Indigenization Policy Era (1972-1985):

- Government introduced indigenization policies, requiring foreign banks to cede majority ownership to Nigerians.

- Significant expansion in the number of commercial banks.

6. Structural Adjustment Program Era (1985-1990):

- Economic reforms aimed at restoring macroeconomic stability.

- Mergers and acquisitions reduced the number of banks from 40 to 28.

7. Banking Consolidation Era (2004-2005):

- Major reforms to strengthen the banking system.

- Minimum capital requirement increased, leading to mergers and acquisitions.

- Number of banks reduced from 89 to 24.

8. Post-Consolidation Era (2006-Present):

- Continued regulatory focus on stability, risk management, and corporate governance.

- Diversification of banking services, technology adoption, and increased competition.

- Emergence of digital banking and fintech companies.