The story of the Bank of British West Africa and its transformation into First Bank of Nigeria Plc is central to the history of modern banking in Nigeria and West Africa. Established in 1894, the bank is the oldest commercial bank in the country, and its growth reflects significant economic, commercial, and institutional developments from the colonial era to the present.
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Founding and Early Years
In 1894, the Bank of British West Africa (BBWA) was incorporated with its headquarters originally in Liverpool, England, though it commenced business in Lagos, Nigeria, where it established its first branch. The initiative was led by Sir Alfred Lewis Jones, a shipping magnate from Liverpool, whose Elder Dempster shipping company was deeply involved in trade between Britain and West Africa. The bank was created to support expanding commercial activities, facilitate trade finance, provide a secure place for deposits, and offer a uniform means of exchange for a region previously reliant on barter and a mosaic of currencies.
In its formative years, BBWA played an important role in monetary logistics for the colonial economy, often acting in capacities similar to those of a central bank, particularly through its function as an agent of the West African Currency Board for the distribution of West African silver coins in exchange for sterling. The bank’s first international expansion occurred within a few years of its founding with the opening of branches in Accra (1896) and Freetown (1898), signalling early regional reach and ambition.
Expansion Across West Africa
After consolidating its presence in Lagos, the bank extended services to other parts of what is now Nigeria. By the early 20th century, BBWA had established branches in cities such as Calabar, Kano, Zaria, Lagos, and Ibadan, linking commercial centres across the colony. This expansion was part of broader economic developments under British colonial administration, in which formal financial infrastructure was seen as essential to managing trade, facilitating government transactions, and integrating regional markets.
In 1912, BBWA engaged in its first known acquisition, absorbing the Anglo‑African Bank. This transaction is frequently cited as one of the earliest examples of banking consolidation in West Africa and contributed to BBWA’s regional dominance in commercial banking. Throughout this period, the bank primarily financed foreign trade and provided financial services that supported the activities of British business interests and the colonial government.
Colonial Economy and Banking Functions
Under British colonial rule, the economy of Nigeria was organised around the export of primary commodities, the maintenance of colonial administrative functions, and the interests of European trading firms. BBWA’s banking services were aligned with these economic structures, providing transactional facilities, letter of credit services and other commercial banking functions that underpinned trade in commodities such as palm oil, cocoa, and groundnuts. Because lending required collateral that many indigenous traders lacked, early credit provision was largely extended to foreign or European enterprises.
Despite these limitations, BBWA’s presence facilitated broader monetary stability by offering secure deposit services and standardised exchange facilities, helping to reduce reliance on informal financial arrangements and a multiplicity of currencies. The bank’s role in currency distribution and exchange was particularly significant before the establishment of formal central banking institutions in the region.
Name Changes and Institutional Evolution
The history of BBWA is marked by a series of name changes and structural transformations that corresponded with political and economic shifts in West Africa. In 1957, the bank changed its name from the Bank of British West Africa to the Bank of West Africa (BWA) to reflect a broader regional identity beyond strictly British interests.
Following a merger with Standard Bank of the United Kingdom in 1966, the institution adopted the name Standard Bank of West Africa Limited. In 1969, amid legislative changes and increasing local incorporation requirements, the bank was incorporated as Standard Bank of Nigeria Limited under Nigerian company law.
In subsequent years, the bank underwent further transitions, including rebranding as First Bank of Nigeria Limited in 1979, and later as First Bank of Nigeria Plc. Structural reorganisation under FBN Holdings Plc in 2012 saw the commercial banking operations formally separated from other group interests while retaining the historic name.
Role in Post‑Colonial Financial Development
Following Nigeria’s independence in 1960, the bank expanded its services to include more extensive credit to indigenous Nigerians and increased focus on retail banking. By 1963, the institution operated over 100 branches across West Africa, underscoring its extensive reach and role in financial inclusion. The expansion into retail services contributed to the bank becoming an integral part of domestic economic life, offering loans, savings, and other financial products to a broader segment of the population.
The bank was one of the first Nigerian financial institutions to be listed on the Nigerian Stock Exchange in 1971, allowing Nigerians to own stakes in the institution that had begun as a colonial‑era bank. This listing represented a shift towards local participation and investment in the national economy.
From the 1980s onwards, First Bank of Nigeria extended its international footprint with the establishment of branches and subsidiaries in global financial hubs including London, as well as in other African markets. These developments reflected the bank’s transition from a colonial commercial bank to a globally recognised financial services provider.
Economic and Social Impact
The Bank of British West Africa played a foundational role in shaping modern banking in Nigeria and contributed to key economic and social developments. Its services facilitated the growth of trade, supported government fiscal operations, and helped standardise monetary practices across the region. Over time, the expansion of branch networks improved access to financial services for a wider range of individuals and businesses, fostering entrepreneurship and economic participation.
The bank’s evolution mirrors Nigeria’s broader economic journey from a colonial economy structured around export commodities to a diversified modern economy with a sophisticated financial sector. First Bank’s involvement in infrastructure financing, such as loans for railway expansion and industrial development, positioned it as an important partner in national development efforts.
Legacy and Contemporary Relevance
Today, First Bank of Nigeria Plc is recognised as one of the leading financial institutions in Nigeria and Sub‑Saharan Africa. Its history spans over a century of economic transformation, institutional growth, and service evolution. The bank’s extensive branch networks and diversified product offerings contribute to financial inclusion, entrepreneurship support, and economic stability in Nigeria.
The institution’s legacy is visible in its continued presence on the Nigerian financial landscape, its contributions to regional integration, and its ability to adapt to changing economic environments while maintaining continuity with its historical roots.
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Author’s Note
This account traces the history of the Bank of British West Africa and its transformation into First Bank of Nigeria Plc, a journey that reflects the broader evolution of formal banking in Nigeria. From its establishment in 1894 to its present status as a major financial institution, the bank has played a central role in supporting trade, economic development, and financial inclusion. Its story highlights how enduring institutions adapt to political, economic, and social change while contributing to national growth.
References
- First Bank of Nigeria Plc official history, Our History pages
- First Bank of Nigeria 130th anniversary milestones publication
- International banking history texts and institutional historical summaries
