400% Increase in Total Turnover of Nigerian Banking Industry During 2003-07

The Nigerian banking industry grew tremendously during 2003-07 with huge growth in every segment of the industry including deposits and credit.

According to the Governor of Central Bank of Nigeria (CBN), Prof. Chukwuma Soludo, in 2003, the total balance sheet of the banking industry was N2.7 Trillion ($0.023 Trillion) and in 2007, it reached to N10.43 Trillion ($0.09 Trillion), growth increased by 400% during 2003-07, as reported by ThisDayOnline

Soludo also revealed that money deposit segment have grown aggressively since 2003 when consolidation program was initiated. In December 2007, the total deposits were around N5.4 Trillion ($0.046 Trillion) against N1.3 Trillion ($0.011 Trillion) in 2003. Besides, the credit segment of the industry also reached to N4.5 Trillion ($0.038 Trillion) in 2007 whereas it was N1.9 Trillion ($0.016 Trillion) in 2003.

According to the industry experts, the unprecedented growth in the Nigerian banking industry in that period (2003-2007) is due to lack of money in the country, introduction of new payment schemes, improvement in quality of services, and rapid infrastructure development.

Apart from this, Nigerian economy is growing due to establishment of new businesses and industries in the country which is letting people to save money. Moreover, change in perception of Nigerians that money is safer in bank rather than at home leading to opening of more saving accounts in the country.

Lekki Financial Services Corridor in Lagos also contributed to the growth of the Nigerian banking industry. The selection of Lagos is very important because it is a nerve center of West Africa sub-region and Nigeria. It will certainly help in making Nigeria the most preferred financial service center in Africa.

Additionally, the Nigerian banks are currently expanding their facilities beyond Nigeria with some banks opening new branches in several West African countries. They are also expanding their services in many other African countries. Therefore, it’s not only increasing the customer base but also enhancing popularity of the industry globally.

According to a research analyst at RNCOS, “The Nigerian banking industry is spurting growth in economy of the country. Inclusion of financial strategies in the banking industry is also helping industry by attracting more people to take benefits of banking facilities. Indirectly, people have access of the good financial services in the country which is also helping industry to grow.”

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