What Are The Importance Of Banking In Nigerian Economy?

Nigeria, officially the Federal Republic of Nigeria, is a constitutional republic found in West Africa. It shares borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in the north, the country is made up of 36 states and its Federal Capital Territory, Abuja.

Currently one of the fastest growing economies in the world, Nigeria is listed amongst the 'Next Eleven'. A group of eleven nations identified by the investment banking group, Goldman Sachs, as having the potential to become one of the largest economies of the 21st Century.

Nigeria's Central Bank of Nigeria (CBN) has a series of objectives, these include:

• Ensuring monetary and price stability.

• Issuing the legal currency of Nigeria.

• Maintaining external reserves to protect the international value of the legal currency.

• Promoting a secure financial system in Nigeria.

• Providing economic and financial advice to the Nigerian government.

The Central Bank of Nigeria has the responsibility of ensuring high standards of banking practice and financial stability, as well as the promotion of an efficient payment system.

In addition to these core areas, over the years the bank has performed important developmental functions, focused on all the key sectors of the Nigerian economy, such as finance, agriculture, and industry.

Banking plays an important role in the economy of a country. Nigeria is a developing country and banks get even more important here. Banks are essential because they help in investment and disbursement of funds. They help the economy as a whole by providing investments and the people by giving them interest money. Thus they are beneficial to the public as well as the country.