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The goal of this research is to look into the Urban Banking Scheme as a vehicle for economic growth, with a focus on the First Bank of Nigeria Plc, Benin City, Ring Road branch.

The overarching challenge in Nigeria that impedes the development of urban banking is the country’s designed and poorly implemented financial practises. The project examines the extent to which urban banks have been able to meet people’s requirements through their lending strategies.

The first chapter examines the historical context, problem statement, research questions, aims of the study, significance of the study, scope of the investigation, limitations of the study, and definition of words. In Chapter Two, the researcher was required to review a large number of literatures written by various writers, as well as articles published by a variety of people.

So many references had to be made during the writing process before the literature evaluation was completed. In the third chapter, a questionnaire was utilised to collect information, and analysis was also performed. The presentation of data collected and outcomes of investigations conducted in the Bank and by officials and customers to the Bank is shown in chapter four. Policy recommendations and a conclusion were made in the project’s fifth chapter.


The recognising and degree of bank output is a long-debated question in banking theory. Although banks are a strategic instrument in both monetary theory and the actual world, there is little agreement on what they produce, and occasionally contradictory output measures serve academics, particularly in evaluating a bank’s production function (Benston 1982 and 1988).

Banking is distinguished by various characteristics that distinguish it from other types of bank output. Banking is a service industry that conducts a wide range of functions such as depositing, safe advice, conducting trust services, moving and collecting funds, and so on. Modern commercial banking in Nigeria may be traced back to the early colonial period, when the African Banking Cooperation established a branch in Lagos in 1982.

It has been one of the most advanced financial institutions while being the oldest element of the Nigerian financial system. Other financial communication (intermediaries) are officially hidden (limited) in terms of capital resources and scope of business, and the majority of them are new developments.

This gives commercial banks an advantage over others, particularly related institutions such as federal savings banks, merchant banks, and mortgage banks, in terms of collecting deposits and extending credit to the economy. Banking activity began in Nigeria in 1872 with the founding of the African Banking Cooperation, which was tasked with distributing Bank of England notes for the British Treasury.

In 1892, the Bank of British West Africa, which is now known as the First Bank, was established. The National Bank of Nigeria was established in 1983 as the country’s first indigenous bank. Numerous banks were created between 1933 and 1945. Almost 150 banks were created, according to Foluso Olabisi in his book Introduction to Banking.

Meanwhile, only Continental Bank and the WEMA banks are struggling to stay afloat. Furthermore, during 1950 and 1951, which is commonly referred to as the period of the bank boom (rapid increase) in Nigeria. During this historical period, nearly eighteen (18) banks were soon created.

All of them had gone into voluntary liquidation by the end of 1954, with any merchant bank in 1960. The government established G. based solely on the performance of indigenous banks. P. appointed a commission to investigate indigenous bank failures. The commission’s reports refer to the establishment of the Central Bank of Nigeria (CBN) in 1958.

Furthermore, it is worth noting that prior to the decree (an official order) creating Nigeria’s central bank in 1958. Nigerians were growing increasingly sceptical (NAME) of expatriate (a person who does not live in his country) banks discriminating against local borrowers and even competing unjustly with the indigenous bank’s limited financial base.

The founding of the Nigerian Central Bank was a watershed moment in the government’s effort to harness or accomplish the activities of banks and entirely transform (revolutionise) them for the nation’s growth. With the banking edict of 1969, the true transformations in banking commerce began. This was followed by the indigenization edict in Nigerian hands.

The Okigbo committee, established by the federal government in 1976 to study the financial sector, was the apex of the banking revolution. The federal government adopted some of the official suggestions or recommendations, including the expansion of banking services to metropolitan areas, in 1977.

Prior to the passage (the formalisation of a legislation) of a programme in urban areas, city people faced severe difficulties in terms of interchange and company promotion.

Some of these residents excavated (dig) up holes to hide their money or lend it to persons who might not pay back the money. As a result of the preceding, there was no proper redistribution or sharing of money,

as well as ineffective circulation. The urban banking initiative is also part of the government’s goal to support agriculturists who largely live in cities and to dissuade employees from migrating from cities to rural areas.


For over a century, the First Bank of Nigeria Plc has distinguished itself as a prominent banking institution and a significant contributor to Nigeria’s economic success and development. Sir Alfred Jones, a shipping magnate from Liverpool, launched the bank in 1894 as a tiny operation at the office of Elder Dempster and Company in Lagos. On March 31, 1894, it was formed as a limited liability company with its headquarters in Liverpool.

After absorbing its predecessor (a thing such as a machine that has been followed or replaced by something else), the African Banking Corporation, it began operations under the corporate name of the Bank for British West African (BBWA) with a paid up capital of 12, 000 pounds sterling.

This denoted the bank’s preeminent (important) position. During its years of operation, the bank experienced impressive growth and collaborated closely with the colonial government in performing traditional functions of a central bank, such as the issuance of specie in the West African subregion.

To demonstrate its West African bravery, a branch was established in Accra, Gold Coast (now Ghana) in 1896, followed by another in Freetown, Sierra Leone, in 1898. This was the beginning of a bank’s foreign banking operations. In 1890, the bank’s second branch in Nigeria opened in old Calabar, and two years later, services were extended to Northern Nigeria.

The bank has the largest branch network in the business in Nigeria, with 339 branches distributed across the federation. To meet the demands of its customers, First Bank has expanded into a variety of banking activities and services. Corporate and retail banking registration, trusteeship, and insurance brokerage are examples.

Furthermore, in November 2002, the bank became the first financial institution in Nigeria to create a subsidiary (business company) bank in the United Kingdom as part of its growing internationalisation strategy (to bring things under the jurisdiction and protection of many nations).

It changed its name from Bank of British West Africa to Bank of West Africa in 1957. With the company decree of 1968, the bank was incorporated locally as Standard Bank of Nigeria Limited in 1969. In 1978 and 1991, the bank’s name was changed to First Bank of Nigeria Limited and First Bank of Nigeria Plc, respectively. In 1985, the bank implemented a decentralised organisation with time regional administrations.

This was reconfigured (to make changes to how things work) in 1992 to improve the banks’ operational efficiency. In 1996, the bank launched the FBN (First Bank of Nigeria) Century 11 project to revolutionise its operations in response to the changing environment.


The primary impediment to the advancement of urban banking is simply the destitute, poorly implemented financial practises that exist in urban sectors. Most people are concerned about the effects of the urban banking system on urban areas and their inhabitants. The researcher believes that banks are one of the institutions that the government employs to facilitate economic progress.

One of the most effective strategies for analysing the economy is to focus on urban areas in order to expand or encourage agricultural activities, which will help to raise the standard of life in the future. As a result, looking at the urban areas,

they were left to perform their banking and credit in the old fashion by using diverse techniques such as “AJO” (daily savings collection), “Osusu” (money lenders), which has made it difficult to create modern banking habits practises.

Furthermore, the absence or deficiency of infrastructures (the basic system and services required for a country or organisation to function smoothly). The institutional mechanism for mobilising savings for investment purposes has impeded (prevented) urban sector growth.


To guide the investigation, the following research questions were developed.

Does the bank offer career possibilities to Edo state residents?

How effective have banks’ contributions been in influencing particular economies?

What are the challenges that banks face while providing services to city dwellers?

To what extent have the banks in this area influenced the residents’ way of life?

Do banking activity in Edo state’s urban areas progress?

Is it true that the banking system promotes urban development?


The primary goal of this research is to examine the economy and its progress in Edo state’s urban districts. In other words, to determine the extent to which the banks in this area have changed the residents’ way of life. Because the majority of urban residents work in agriculture,

the researcher’s work is also focused (planned or organised) towards how banking services have aided in the rise of agricultural productivity. Another goal of the research is to look into the difficulties that bank branches have when providing services to city people.


The quality of any study activity is determined by the necessity to society, which is the current need of the society. The urban banking plan is envisioned as a means of growing savings for distribution to the productive sectors of the urban economy, particularly the agricultural sectors, with the goal of improving the well-being and overall development of urban populations.

This study is also concerned with the bankers’ perception of urban banking as a costly and non-profitable business. According to this research project, while the programme may be short-term, it will be a significant way of promoting the rapid (happening very quickly) expansion and development of the urban unorganised money market, which has influenced the economy for efficient utilisation.

Nonetheless, the research will assist students in learning more about how urban banking schemes serve as a tool for economic development as well as meeting the needs of the inhabitants through lending policies to finance projects such as agriculture, small scale indigenous businesses, government projects, and so on.


As a case study, the first bank of Nigeria Plc Edo state Benin City located on Ring Road will be used in this research study. The study will also look at how the urban bank aided Edo State’s general economic development by mobilising savings and needy areas of the economy.

It also examines the bank’s operations in terms of lending strategies implemented to support the agricultural sectors and small-scale indigenous enterprises in the area.


Bank: A bank is a financial entity that stores money and other valuables for security purposes. Furthermore, a bank is a place where money can be deposited and refunded on demand or on time. It is a location for loan negotiations.

Banker: A person who owns or runs a bank and is responsible for its operations.

Banking refers to a bank’s business activities such as lending money, accepting deposits, issuing notes, discounting bills, and so on.

Deposit: A sum of money placed or paid into a bank or similar institution to establish or add to an account that contains the raw materials required for the bank’s operation.

Account: A written account of money owned by a business and money held by a person in a bank.

Fixed deposit account: A fixed deposit account is a type of deposit account with a commercial bank that can only be withdrawn at the agreed-upon period.

Current account: This sort of account is typically used by merchants, industrialists, public corporations, and individuals. The customer deposits money and can withdraw it at any time. A cheque is used to make the withdrawal.

A loan is a credit facility made available to consumers by a bank. It is available through banks, private sources, and other financial entities.

Cheque: A cheque is a particular printed form on which an order to a bank is stated to pay a sum of money from one’s account to another person.

Investment: The amount of money or the item in which you invest, as well as the act of devoting time or effort to a specific endeavour in order for it to be successful.

The urban area distinguishes itself from the village.

Economic development: The extension of a society’s productive restructuring to reflect quantitative and qualitative changes in the mode of production and the improvement of the life pattern of the great majority of its people.

Osusu/Ajo: It is a traditional institution that acts as a way of storing money collected from a group of individuals every month, every week, or market day, at the conclusion of which the person receives the entire amount given. It continues till it reaches the turn every time.

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