First Bank of NigeriaDecember 31, 2021 2022-01-04 16:44
First Bank of Nigeria
First Bank of Nigeria
The First Bank of Nigeria has been a well-recognized monetary company over the years. With subsidiaries in other countries, the first bank of Nigeria has also gotten recognition outside Nigeria. The first bank of Nigeria has been providing financial services to the public for more than a century.
The first bank of Nigeria was established in 1894 as the Bank of British West Africa. The bank was formed as a limited liability company on March 31st, 1894. However, in 1979 the bank was renamed First Bank of Nigeria as we all know it today. Furthermore, the bank was set up when the British had slight dominance in Nigeria.
Table of Content
- Why Was the First Bank of Nigeria Established?
- Does the Government own the First Bank of Nigeria?
Why Was the First Bank of Nigeria Established?
In the 19th century, Nigeria wasn’t advanced in its economy. As Nigerians, we were taught in our educational institutions, and that’s true. However, if the bank was instituted during this period, why was the first bank of Nigeria established?
The first bank of Nigeria was established to provide services to the shipping and trading enterprises owned by the British. As of then, the bank was called the Bank of British West Africa(BBWA). The bank was set up because of the presence of British shipping companies in Nigeria.
Although, during the 19th century, Nigeria had no promising economy. However, some of the British had opened businesses in some regions of the country. So, this led to why the first bank of Nigeria was established in the country. Alfred Lewis Jones, a successful British businessman and a shipowner was the bank’s founder.
However, this businessman was allegedly the highest importer of silver currency into West Africa through his Elder Dempster shipping company.
According to him, without a bank, economies were limited to using barter and operating other kinds of mediums of exchange. The bank was established because it could serve as deposits and advance exchange.
Initially, the bank mainly rendered financial assistance to foreign trade. The bank also assisted indigenous Nigerians by lending to those small to offer as collateral for loans.
Does the Government own the First Bank of Nigeria?
No, the first bank of Nigeria isn’t owned by the government. However, the bank is under the supervision of the government of Nigeria. Notwithstanding, the bank is independent of the government in handling its affairs and operations.
With that said, a public sector bank or a private bank is characterized by its shareholders. A public bank has more than 50% of its shareholdings in the hands of the federal or state government. Meanwhile, in a private bank, private corporations or individuals hold the highest portion of stakes.
While this may be true, at the time of writing this article, Femi Otedola, a successful businessman, had the most significant shares in the first bank of Nigeria. This event has classified the bank as a non-government bank. However, the first bank of Nigeria is entirely owned by FBN Holdings PLC.
Furthermore, FBN Holdings PLC has more than a million shareholders. This fact diversifies its ownership. Therefore, being a shareholder in this legal entity makes you part of the company.
What Are the Services Offered by the First Bank of Nigeria?
Some years back and growing up as kids, financial security comes into one’s mind when a bank is mentioned. Maybe that’s because we were kids, or the bank wasn’t well developed then. However, that’s all in the past now. The first bank of Nigeria, once seen as a place of securing wealth, has now evolved into an institute rendering several services.
Let’s see the services offered by the first bank of Nigeria below;
Personal banking services
Who would have thought financial life in Nigeria would become so convenient as it is today. Can you imagine traveling to get money from a friend or relative? That would be so annoying. Also, can you think of taking a substantial visible size of money to the market? That’s a risk no one would want to take. The first bank of Nigeria has averted these unwanted events. In addition, the bank has also assisted individuals in securing their money through advanced technology.
Commercial banking service
Over the years, the first bank of Nigeria has been a strong financing organization to the country’s economy. That has been possible by granting loans to businesses, individuals, and even the government. On the other hand, the bank accepts deposits made by the public and government. Furthermore, the bank has also helped customers with payments and has assisted in changing foreign currencies.
Many young successful entrepreneurs made their wealth through investments in financial organizations. Fortunately, the first bank of Nigeria also gives you that opportunity to invest your money. The bank offers this service usually in the form of releasing its shares to the public. In addition, the bank has been maintaining its customers consistently for years. However, the bank has shown no sign of liquidation; buying its shares won’t be a bad idea.
Asset management services
Although this practice is common among wealthy individuals, companies, and governments, the first bank of Nigeria has financial advisors offering these professional services. When these advisors are consulted, the total assets are managed on behalf of the individual or organization. While the portfolio managers do what they know best, the client’s total wealth grows over time.
We all know being optimistic about the future is okay. However, the unexpected can happen at any point in our lives. With the subsidiaries of the first bank of Nigeria offering insurance services, one can get ready for any future occurrences. The bank got you covered by managing the risks of your everyday life. The different FBN insurance organizations are authorized limited liability companies. The first bank of Nigeria owns these institutions.
These services mentioned above are just a few out of many assistance rendered by the first bank of Nigeria. The bank gradually deploys new services and products to meet the needs of its customers. For these reasons, the bank, unarguably, has a lot of positive impacts on society.
Is the First Bank of Nigeria a Plc?
The First Bank of Nigeria is one of Nigeria’s oldest and multinational banks with various organizations. Furthermore, in 1971 the bank was listed on the Nigeria Stock Exchange (NSE) and had 1.3 million shareholders. With a bank this large, one might conceive, if the bank is a public limited company (PLC).
Yes, the first bank of Nigeria is a public limited company. This scenario is because the bank is designated as a PLC. However, FBN Holdings PLC, a parent organization that owns the bank, is appointed as a public limited company.
On the one hand, most times, the bank’s name is often mentioned with Ltd ending it. This irony, without doubt, tends to complicate matters and makes the proper logic challenging to understand. To make this clear, the first bank of Nigeria is a PLC. Moreover, the first bank of Nigeria is under the wings of a PLC, which is its parent company FBN Holdings PLC.
With that said, PLCs are usually companies that organize their systems by marketing their shares to the public. With this in mind, one can conclude the first bank of Nigeria is a PLC. This mindset is because, like any PLC, the first bank of Nigeria also offers shares to the public, and that’s a fact. Finally, the bank might not be an authorized PLC, but it has been operating at high standards like any PLC.
What Is the Logo of the First Bank of Nigeria?
The logo of the first bank of Nigeria is an elephant, associated with a blue and gold color in the background. Furthermore, presently the bank’s logo solely shows an elephant’s head and leg, with Since 1894 written on the icon. However, a complete portrait of an elephant was featured as the bank’s logo until January 27, 2014.
Equally important, the bank’s new logo looks slightly different from its old logo. Nevertheless, the bank’s new logo claims to be more promising than the old logo.
Although one might get confused about the bank’s logo, fortunately, that wouldn’t be you. I will explain the details of this logo here.
Let’s see the first bank’s old and new logos below;
Even the colors on the old logo are visibly different from the new one. However, the famous African elephant seems to be the notable transformation on the bank’s logo. The first bank’s old logo icon portrays an elephant, with FirstBank and Since 1894 in the background. Furthermore, the blue color on the old logo tends to be lighter. Also, the elephant’s trunk is curled inward, and its head is slightly down.
However, the half appearance of the elephant in the new logo icon is a dissimilarity one detects by mere observation. Although, when looked closely, the elephant’s head seems to be slightly higher, facing an upward direction. In addition, the elephant’s trunk is outwardly curled, and the elephant’s foot is slightly raised higher. Finally, the prior light blue is now modified into deep; there’s a bar of gold in the logo.
Nevertheless, the logo of the First Bank of Nigeria symboBanks their strength and growth.
Furthermore, coming to the colors, the logo, which is deep blue and gold, has their interpretation of the logo represents the bank’s virtues of momentum, innovation, and evolution.
The gold color signifies that the bank would continue to set a gold standard of value in their services.
Do First Bank of Nigeria Have Branches Outside Nigeria?
Yes, the first bank of Nigeria has branches outside Nigeria. Surprisingly, even during its establishment in Nigeria, the bank already had a head office in Liverpool, England. However, in Nigeria, the First bank’s headquarters is located in Lagos, Nigeria.
As stated earlier, the first bank of Nigeria has subsidiaries all over the country and beyond. It operates as the parent and leading bank in West Africa and has branches. With this in mind, you can guess if the first bizarre branch side of Nigeria.
Furthermore, the bank has FBNBanks in neighboring countries like Ghana and the republic of co. The bank still has its subsidiary banks in Sierra Leone, Gambia, and Senegal. This does, isn’t stop here. The bank also extends; the European countries like England and England, and China, precisely in Beijing; the country’s capital is the FirstBank Representative Office that oversees trade businesses.
How Does the First Bank of Nigeria Make Its wealth?
Currently, the first bank of Nigeria has a net income of more than 62 billion naira. Not only that, but the bank also has a total asset worth 5.9 trillion naira.
This income shows the bank has acquired tremendous wealth over the years and more numbers adding to the figures.
The bank usually makes its revenue through the fees and commissions derived from transactions made by customers. However, this money made by the bank goes into financial areas that yield more money.
Let’s see how the first bank of Nigeria makes its wealth below;
partnership and sponsorship
Sponsorship doesn’t directly bring financial profit to the sponsor. However, sponsorship has ways of advertising the sponsor to the public, and more people patronize the sponsor. On the other hand, a partnership directly generates money if the entity partnered with is financially doing well.
The first bank of Nigeria has been seen on several occasions sponsoring different brands and partnering with some enterprises. This activity has been one of the alleged ways the bank makes its money.
You might have seen or heard that the bank owns some houses, companies, lands, and other properties. Confidently, these are all true; the bank owns properties and even strives to acquire more assets.
This technique creates unimaginable wealth for the bank, and definitely, the first bank of Nigeria isn’t left out.
Interests on loans
When loans are granted, they are expected to be brought back with interests. This way, the body that gives the loans makes a certain percentage of the money returned. The first bank of Nigeria grants loans, and that’s one of the services it renders as a bank.
Fees and commissions
Most of us love using the Point of Sales (POS) services. It saves us the stress of joining long queues at the bank. However, do you know the bank gets commissions for services? Even while using Automated Teller Machines (ATM), the bank also gets commissioned.
The bank has a diverse fee rate for different types of transactions made by customers. As we know, the first bank of Nigeria doesn’t offer feeless transactions. Therefore, the first bank of Nigeria makes money through this means.
The above is how the first bank of Nigeria made its wealth. Nonetheless, there are other ways the first bank of Nigeria makes its revenue. However, these financial growth techniques are best known by the bank itself.
The first bank of Nigeria was founded in 1894. However, the bank was known as the Bank of British West Africa (BBWA), and in 1979, it was renamed. The bank was retitled First Bank of Nigeria, as readily called today.
Having a great history and notably one of the leading financial banks in West Africa, optimum services are assured.