Development Banks in Nigeria and Their Areas of Business (Functions)

What is Development Bank?

A development bank is a bank specifically established with the purpose of providing long-term financing for various development projects, which help to accelerate economic development of a country or region.

Development banks play important roles in economy development of a country. The purpose of this article is to list the various development banks in Nigeria and the areas of the Nigerian economy they are making contributions for the overall growth of the nation's economy.

List of Development Banks in Nigeria

  1. Development Bank of Nigeria PLC
  2. Bank of Agriculture
  3. Bank of Industry
  4. Federal Mortgage Bank of Nigeria
  5. The Infrastructure Bank
  6. Nigerian Export-Import Bank

Bank of Agriculture (BOA)

Is a development financial institution registered in 11th June, 2007, formally Agricultural Development and Rural Development. Nigerian Agricultural and Cooperative Bank, was first established in 1973 with the mandate of providing long-term loans for agricultural enterprises. It provides credit facilities to support all agricultural value chain businesses. It also provides non-agricultural micro credit facilities to micro, small and medium enterprises. It carries out other functions such as savings mobilization, capacity development through cooperative development of agricultural information system, and provision of technical support and financial advisory services

Address: Yakubu Gowan Way, PMB 21555, Kaduna State

Postal Address: PMB 21555, Kaduna

Telephone: +234 8023101946

https://www.boanig.com/

Bank of Industry (BoI)

Established in 11th June, 2007

Area of Business/ Functions

The bank was established with the mandate of providing financial assistance for the establishment of small, medium and large business projects and for the expansion, diversification and modernisation of existing ones. The bank focuses more on providing credit facilities to the processing and manufacturing sector of the economy. Its product offerings include asset financing, working capital, and more.

Address: 23, Marina, Lagos

Postal Address: P.O.Box 2357, Lagos

Telephone: +234 01 2713439

Website: https://www.boi.ng/

Development Bank of Nigeria PLC

Development finance incorporated in 29th March, 2017

Address: Plot 1386A Tigris Crescent, Maitama, FCT Abuja

Telephone: +234 9 9040000

Ownership Type: Foreign and Domestic investors

Federal Mortgage Bank of Nigeria

Established in 11th June, 2007

Areas of Business/Functions

According to FMBN Cap, F16, the functions and areas of business of Federal Mortgage Bank of Nigeria include:

  • Provision of long-term credit facilities for mortgage institutions in Nigeria
  • Mobilisation of both domestic and foreign funds into the housing sector.
  • Encourage the establishment and growth of existing viable primary and secondary mortgage institutions to service the need of housing delivery across Nigeria
  • Linking capital market with housing industry
  • Establish and manage secondary mortgage market
To collect and and administer the National Housing Funds in accordance with the National Housing Fund Act.

FMBN provides estate development loan for housing developers.

Rent-to-own mortgage housing services to individuals

Home renovation loan

Cooperative housing scheme

Nation Housing Fund: Affordable mortgage financing for Nigerians

Address: Plot 266, Cadastral Zone AO, Central Business District, Abuja

Postal Address: +234 9 2344212

Website: https://www.fmbn.gov.ng/

Nigeria Export Import Bank

Registered 11th June, 2007

The Nigerian Export-Import Bank (NEXIM) is a Federal Government of Nigeria owned bank with the mandate to promote export diversification through the provision of Finance, Risk Bearing and Advisory Services in line with Government trade policy.

Established by Act 38 of 1991 as an Export Credit Agency (ECA), NEXIMBANK replaced Nigerian Export Credit Guarantee & Insurance Corporation which was established under Act 15 of 1988. 

It was established with a share capital of N50, 000,000,000 (Fifty Billion Naira) held equally by the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria.

Areas of Business/ Functions: According to Act which established the bank, its statutory functions are:

  • To provide of export credit guarantee and export credit insurance facilities to Nigerians who are its clients.
  • It provides credit in local currency to its clients for exporters.
  • It establishes and manages funds designated for exports.
  • Maintains a foreign exchange revolving fund for lending to exporters who need to import foreign raw materials or machineries  to facilitate export production.
  • Provision of domestic credit insurance that would assist exports.
  • The bank maintains a trade information system in support of export business.
  • Provides short and medium term loans to Nigerian exporters. It also provides short term guarantees for loans granted by Nigerian Banks to exporters as well as credit insurance against political and commercial risks in the event of non-payment by foreign buyers. The Bank is also the government’s National Guarantor under the ECOWAS Inter-state Road Transit programme.

Address: Plot 975, Cadastral Zone AO, Central Business District, Abuja

Postal Address: PMB 276 Garki, Abuja

Telephone: +234 9 52416309

Website: https://neximbank.com.ng/

The Infrastructure Bank

Formerly Urban Development Bank of Nigeria PLC, The Infrastructure Bank Plc was established with the mandate to foster rapid infrastructural development across the country. It is sponsored by Government through Development Finance Institution (DFI), but private-led. It's owned by the three tires of government, the Nigerian Labour Congress, and the Private sector investors.

The Infrastructure Bank is established with the mandate to raise and manage funds for infrastructure development projects across the country. The areas covered are Transportation, Power & Renewable Energy, Mass Housing and District Development, and Urban Infrastructure and Municipal Finance projects.

Registered since 11th June, 2007

Address: Plot: 977, Central Business District, Zone 6 Wise, Abuja

Postal Address: P.M.B 272 Abuja FCT

Telephone: +234 09 6721671

Website: http://www.infrastructurebankplc.com/bank.php

Ikechukwu Evegbu

Ikechukwu Evegbu is a graduate of Statistics with over 10 years experience as Data Analyst. Worked with Nigeria's Federal Ministry of Agriculture and Rural Development. A prolific business development content writer. He's the Editor, Business Compiler

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