Wema Bank: 80-year journey of transformation

At 80, Wema Bank Plc stands as a symbol of what is possible when resilience meets innovation. Its legacy is secure, but the journey continues—one that will undoubtedly shape the future of banking in Nigeria for generations to come.

From an era dominated by foreign financial institutions to one where indigenous bank – Wema Bank – now set the pace, the Nigeria’s banking landscape has no doubt transformed significantly over the past century.

The journey has been one of resilience, innovation, and adaptation. At the heart of this transformation stands Wema Bank, Nigeria’s oldest indigenous bank, which has not only witnessed but actively shaped the country’s financial evolution for the past 80 years.

Founded in 1945 as Agbonmagbe Bank, Wema Bank has grown from a modest financial institution into a key player in the Nigerian banking sector. This journey, spanning eight decades, mirrors Nigeria’s broader economic history—marked by colonial influences, post-independence aspirations, regulatory shifts, and digital transformation.

As Wema Bank celebrates its 80th anniversary come May 2, 2025, it provides an opportunity to reflect on how far banking has come in Nigeria and the crucial role the institution has played in shaping the financial ecosystem.

The early days of banking in Nigeria were defined by the dominance of British-controlled financial institutions such as the Bank of British West Africa (BBWA, now First Bank) and Barclays Bank (now Union Bank). The absence of credit facilities for local businesses created a major gap in the financial system and economic growth among Nigerians.

Against this, the emergence of indigenous banks became a necessity rather than a choice. The establishment of Agbonmagbe Bank in 1945 by Mathew Adekoya Agbonmagbe Okupe was a bold response to this financial exclusion. The bank sought to provide accessible financial services to Nigerian traders, farmers, and small business owners who had long been marginalised by the colonians.

At the time, many Nigerians relied on informal savings and credit systems such as Esusu and cooperative societies. While these systems played a critical role in sustaining local economies, they lacked the structure, security, and scale required to drive large-scale economic development. Agbonmagbe Bank, and other indigenous banks that followed, filled this gap by offering formal banking services tailored to the needs of Nigerians.

Nigeria’s independence in 1960 marked a turning point in the banking sector. The new government recognised the importance of financial institutions in nation-building and actively promoted the establishment and expansion of indigenous banks. This period saw a surge in banking activities, with new policies aimed at ensuring that local businesses and individuals had access to financial services.

Wema Bank, then Agbonmagbe Bank, played a critical role in this new financial landscape. The Western Regional Government under Obafemi Awolowo strongly supported the bank, ensuring that government institutions and businesses patronised its services. This strategic partnership allowed the bank to grow rapidly, expanding its branch network and deepening its reach within the southwestern region of Nigeria.

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In 1969, the bank rebranded as Wema Bank, a move that signified its ambition to operate on a broader scale. This change was part of a larger transformation within Nigeria’s banking sector, as indigenous banks sought to modernise their operations and compete with their foreign counterparts.

The 1970s and 1980s were periods of significant economic change in Nigeria. The oil boom of the 1970s brought unprecedented revenue, but the subsequent economic downturn in the 1980s exposed structural weaknesses in the financial system. Many banks struggled with liquidity issues, poor management, and regulatory non-compliance, leading to the collapse of several indigenous financial institutions.

Wema Bank, however, demonstrated remarkable resilience during this period. By adopting prudent financial management practices and aligning with regulatory requirements, the bank managed to stay afloat while many of its peers faltered.

The introduction of the Structural Adjustment Program (SAP) in 1986 by the military government further reshaped the banking sector. SAP led to the liberalisation of the financial industry, encouraging the establishment of more banks and increasing competition. This period saw the proliferation of new-generation banks that introduced modern banking practices, forcing older institutions to innovate or risk becoming obsolete.

Wema Bank adapted to these changes by expanding its services, improving customer experience, and leveraging technology to enhance its operations. The bank’s ability to evolve with the times cemented its status as a key player in Nigeria’s banking industry.

The early 2000s ushered in yet another wave of transformation in Nigeria’s banking industry. The Central Bank of Nigeria (CBN), under Governor Charles Soludo, introduced a major banking consolidation exercise in 2005, raising the minimum capital requirement for banks from N2 billion to N25 billion. This policy led to a series of mergers, acquisitions, and the outright collapse of weaker banks.

Wema Bank, in its determination to survive, made a strategic decision to transform into a regional bank, allowing it to operate within a defined geographical area while maintaining financial stability. This move allowed the bank to restructure its operations and focus on delivering quality financial services.

However, Wema Bank’s most groundbreaking transformation came in 2017 with the launch of ALAT, Nigeria’s first fully digital bank. At a time when fintech startups were disrupting traditional banking models, Wema Bank took the bold step of embracing digital innovation. ALAT revolutionized banking in Nigeria by offering a seamless, branchless banking experience that catered to tech-savvy customers.

This innovation positioned Wema Bank as a leader in digital banking, demonstrating its ability to not just adapt to change but also set new industry standards. The success of ALAT underscored the bank’s commitment to financial inclusion, ensuring that banking services were accessible to a broader segment of the population, including those in underserved communities.

A journey of impact and a future of possibilities…

As Wema Bank celebrates its 80th anniversary, its legacy is one of resilience, adaptability, and impact. The bank has not only survived multiple economic crises and regulatory changes but has also remained at the forefront of financial innovation.

Today, Wema Bank continues to play a pivotal role in Nigeria’s economy, supporting businesses, empowering individuals, and driving digital transformation. Its journey from a small indigenous bank to a national financial powerhouse reflects the broader evolution of Nigeria’s banking industry.

The story of Wema Bank is also a testament to the power of vision and perseverance. From the determination of its founder, Chief Mathew Adekoya Agbonmagbe Okupe, to the bold decisions made by its leadership over the years, the bank has consistently demonstrated its ability to navigate challenges and seize new opportunities.

Looking ahead, the future of banking in Nigeria will be shaped by digital innovation, regulatory dynamics, and shifting consumer expectations. As fintech continues to disrupt traditional banking models, institutions like Wema Bank must continue to embrace change, leverage technology, and prioritize customer-centric solutions.

Wema Bank’s 80-year journey is not just a story of survival but one of leadership and transformation. As the bank moves into the next phase of its growth, it remains committed to driving financial inclusion, enhancing digital banking experiences, and contributing to Nigeria’s economic prosperity.