The Nigerian Banking System and Top Banks

As in any other nation, the banking and financing system is a very important aspect when it comes to economic development. Before going into the subject, it is important to mention the fact that Nigeria is an emerging market and the banking system is a key factor towards a better life status.

The Central Bank of Nigeria

In the case of Nigeria, the main institution that controls the supply of the currency Nigerian naira is the Central Bank of Nigeria established in 1958 based on the CBN Act. The objectives of the Central Bank of Nigeria changed over time, but today due to the use of capitalization, the banking system has been improved and recovered its strength.

Further on, the recent improvements in the banking system are also the result of the increase in oil prices. It is known that Nigeria is a large oil trader of USA and by applying the right financial objectives the whole nation has something to win - but most importantly more chances towards a better life. The Central Bank of Nigeria enjoyed a great success during the last 2 years due to this trading agreement, as well as the Nigerian people.

Nigeria's economy

Moreover, according to the results of the World Bank the Nigerian GDP almost doubled from 2005 until 2007, reaching $1.754 / capita in 2007. This is an important economic development achievement for an emerging market like Nigeria. Likewise, it is also a sign that Nigeria is effectively and efficiently using the available resources since it is the world's 12th largest petroleum producer.

Besides the petroleum industry, in Nigeria there is also a fast growing telecommunication market that competes at worldwide level with other important operators. In order to maximize the outcomes from the telecommunication sector, the Nigerian government is struggling to expand it to space communications since the nation has already its own space satellite.

The best Nigerian banks

Even if Nigeria is an emerging market, it offers a well-developed financial system comprising local and international financial institutions related to brokerage, insurance, investment but also financing.

In the past years, there were so many small banks available in Nigeria that these became vulnerable to fraud and other bank malpractices. Therefore, in order to provide more reliable financial services, the solution was to perform mergers. In this way, the number of banks available decreased, but the ones that remained had a better capitalization structure and were trustworthy. The current Nigerian banks are able to offer loans with longer terms as compared to before the mergers and this is an important aspect when it comes to financing the local projects.

Surprisingly or not, starting with 2006, the Nigerian financial sector enjoys success and worldwide recognition since many Nigerian banks have reached the list of the world's best 1000 banks. Having this in mind, the best Nigerian banks listed in this report are as follows:

. First Bank

. Zenith Bank

. Union Bank

. Guaranty Trust Bank

. First Inland Bank

. Intercontinental Bank.

To sum up, from an economical and financial point of view Nigeria is rapidly approaching the middle income level and this will lead to a better living status and more investment projects throughout the nation.

Atinuke Saletti - editor and writer of African and Nigerian culture and societies. A contributor for Naija Face (http://NaijaForum.net).

Nigerian Politics and Lies (Part 2)

Elections in Nigeria have been characterized by rigging, ballot box snatching, thuggery, political assassinations, imposition of unpopular candidates and declaration of false results. The same system ushered in this government. Sensing that the vast majority of Nigerians never believed in them from the outset the Yar'adua administration promised to carry out political reformation as soon as possible but after several months nothing tangible has happened in this direction. With the 2011 polls by the corner, the Justice Uwais' electoral reforms panel report is yet to see the light of day in the national Assembly.

Agriculture still remains a shadow of itself with Nigeria depending on massive food importation to feed her citizenry. It would be recalled that this administration in the wake of the world economic meltdown had wanted to import rice to the tune of #80b; but this received serious condemnation from the masses who felt the money should instead be channeled into agricultural development. Nigeria ranked number one in palm oil, groundnut and kola nut production decades ago and was even among the 3 highest producers of cocoa but today Indonesia and Malaysia are making more money from palm produce than we make from crude oil; our groundnut pyramids have disappeared. And the government keeps maintaining its resolve to keep feeding Nigerians with lies.

Economic development continues to elude us as long as the government has refused to take the bull by the horns and formulate policies that would attract tangible investments. Our government properties have all been auctioned to people who have connived with government agents to sell them at cheap rates, share the kick fronts and the kickbacks, leaving the sectors undeveloped. We started to construct the steel plant about the same time with South Korea but today while the Koreans export cars, ships, electronics and steel we are still struggling with how to get our steel industry on its feet. How can it work when politicians deliberately make bogus budgets and implement only a miniature part of it and keep the remainder in their pockets? The question is, our annual national budget which now runs into trillions of naira what are they used for? Are they for improving the welfare of the citizenry or for foreign trips, or for making the politicians fatter?

Joseph Ezie Efoghor is a professional nurse with years of practical experience. He writes on variety of topics which you may find beneficial to you. For more on his write-ups visit http://politicalfield.blogspot.com.