What Are The Functions Of Specialized Banks To The Nigerian Economy?


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Nigeria's economy has been hindered by corruption for many years. At one point, only 1% of the wealth generated by this resource rich country reached the general population. This resulted in widespread poverty and left the country struggling in relation to other economic forces around the world.

In combination with a range of other measures to revive the economy, Nigeria's Federal Government, in collaboration with the Central Bank of Nigeria, launched the FSS2020 (Financial System Strategy) in 2007. This strategy has the ultimate aim of raising Nigeria's economy into the top 20 of the world's leading economic forces by the year 2020.

The specialized banking system is mainly represented by institutions such as;

  • NACRDB, the Agricultural Cooperative & Rural Development Bank,
  • BOI, the Bank of Industry,
  • Agricultural Insurance Corporation,
  • FMBN, the Nigerian Federal Mortgage Bank and
  • NEXIM, the Nigerian Bank of Export and Import

The system is part of the FSS2020 in the hope that it will assist in realizing the key elements of the plan; namely the strengthening of domestic financial markets and enhanced integration within external, international markets.

The specialized banking system was created to support (in combination with other on-going reforms within the country's economy) the so-called Seven Point Agenda. This agenda entails the restoration of permanent peace within the region; the provision of a critical infrastructure; achievement of nationwide food security; improvement of home-ownership and land-tenure; human capital development; empowerment of the country's people and the creation of national wealth, intelligence and security.

It is hoped that the specialized banks will provide access to financial assistance, ensuing investment and improved financial security to the people of Nigeria. A great deal of individuals or groups have until now been unable to access or make use of financial institutions, thus it is hoped the measures will thereby improve the overall economic situation of Nigeria.

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