In this article, we’ll be exploring the compensation provided by banks to Corpers. Many Corps members have been inquiring about whether banks pay Corpers. If you are one of them asking this question, read this article to the end. While the focus is on detailing the amounts banks pay Corpers, we’ll also furnish a list of banks that accept Corpers, along with other essential information such as their functions and locations.
What You Should Know About Serving in Banks
Serving in banks involves working for financial institutions that handle money, provide various financial services, and act as intermediaries between depositors and borrowers. Banks make profits by attracting deposits, servicing them, and earning income through interest on loans or securities. Additionally, banks offer related services like financial management, mutual funds, and credit cards, with some of their liabilities serving as widely accepted means of payment.
It is, however, important to note that not all banks in Nigeria accept Corpers. Most banks, however, don’t allow corps members to serve in their organizations wearing their NYSC outfits (i.e., Khaki). Before we explore how much banks pay Corpers, let’s first examine a list of banks that typically welcome serving Corpers seeking to serve in financial institutions as their primary place of assignment (PPA).
1. Central Bank of Nigeria
The Central Bank of Nigeria (CBN) is among the financial institutions that accept Corpers for their primary place of assignment. Established by the CBN Act of 1958 and operational since July 1, 1959, the CBN serves as the central bank and apex monetary authority in Nigeria. The key regulatory objectives outlined in the CBN Act include maintaining the country’s external reserves, promoting monetary stability, ensuring a sound financial environment, and acting as a lender of last resort and financial adviser to the federal government.
While the central bank plays a crucial role in supporting the government’s economic development initiatives, its involvement as a lender of last resort and adviser has led to regulatory challenges. Post-imperial rule, especially after the Nigerian civil war, the government’s proactive stance in economic development prompted the CBN to make determined efforts to supplement credit shortfalls and allocate credit to the real sector. However, this involvement led to a shift from its original intention of working through commercial banks as the central bank began direct lending to consumers, deviating from its initial approach of utilizing commercial banks for activities related to consumer lending.
2. Mortgage Banks
A mortgage bank specializes in originating and servicing mortgage loans, facilitating individuals in financing home purchases through loans. Key functions of Mortgage Banks include:
- Originate loans: This involves pre-qualifying borrowers, processing loan applications, and underwriting loans.
- Service loans: Responsibilities encompass collecting monthly payments, managing escrow accounts, and handling defaults and foreclosures.
- Sell loans: Mortgage banks often sell originated loans to investors in the secondary market, freeing up capital for new loan origination.
Mortgage banks can operate independently or be part of a larger financial institution like a bank or credit union.
One notable Mortgage Bank in Nigeria accepting Corpers is the Federal Mortgage Bank of Nigeria in Abuja. Other Primary Mortgage Institutions in Nigeria include Abbey Mortgage Bank, AG Homes, Aso Savings & Loans, Brent (Skyfield) Savings, Coop Savings & Loans, FBN Mortgages, FHA Homes Ltd., First Generation Homes, Imperial Homes, Infinity Trust, among others.
3. Bank of Industry
The Bank of Industry (BOI) is another developmental banking institution that accepts Corpers. Owned by the Federal Government of Nigeria, BOI originated from the government’s consolidation of several Development Finance Institutions (DFIs), including the Nigerian Bank for Commerce (NBCI), Nigerian Industrial Development Bank (NIDB), and the Nigerian Economic Reconstruction Fund (NERFUND).
BOI focuses on financing projects aligned with Nigeria’s comparative advantages, efficient conversion of local raw materials into finished products, and ventures capable of being cost-effective producers of quality products for local and international markets. The bank offers various products and services, including medium and long-term loans, working capital finance, equity financing, and management of dedicated funds, among others.
The Bank of Industry operates 31 offices throughout Nigeria, with its headquarters situated in Lagos State and a corporate office in Abuja. These offices are distributed across various states, including Abia, Abuja, Adamawa, Akwa Ibom, Anambra, Bauchi, and Benue. If you’re a Corper interested in serving at BOI, you can find its establishments in your state of service and proceed to collect your request letter.
4. Agricultural Banks
An agricultural bank, commonly known as an AG bank, is a specialized financial institution offering tailored financial services to farmers, agribusinesses, and rural clients. These services aim to assist in managing finances, investing in agricultural operations, and fostering business growth. Agricultural banks, in comparison to other bank types, possess a more nuanced understanding of the unique risks and opportunities associated with the agricultural sector.
One notable agricultural bank in Nigeria is the Bank of Agriculture (BOA) Limited. Fully owned by the Federal Government of Nigeria, with a 60%:40% ownership ratio by the Federal Ministry of Finance Incorporated (MOFI) and Central Bank of Nigeria (CBN) respectively, BOA Limited originated as the Nigerian Agricultural Bank (NAB) in 1972. Operational since 1973, it was established to function as a Development Finance Institution, specifically catering to the needs of the Agriculture and Rural Development sector.
5. Development Bank of Nigeria Plc
The Development Bank of Nigeria (DBN) is an initiative conceived by the Federal Government of Nigeria (FGN) in partnership with global development partners. It is designed to tackle the significant financing challenges encountered by Micro, Small, and Medium Scale Enterprises (MSMEs) in Nigeria.
DBN’s primary objective is to alleviate the financing constraints experienced by MSMEs and small Corporates in Nigeria. This is achieved through the provision of financing and partial credit guarantees to eligible financial intermediaries.
6. Nigeria Export Import Bank
The Nigerian Export-Import Bank (NEXIM) operates as a crucial financial institution, established under Act 38 of 1991 with a substantial share capital of N50 billion, equally held by the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria. This establishment replaced the Nigerian Export Credit Guarantee & Insurance Corporation, founded earlier under Act 15 of 1988. NEXIM plays a pivotal role with several statutory functions.
NEXIM’s functions include providing export credit guarantee and export credit insurance facilities to its clients. It also extends credit support in local currency to clients involved in exports, demonstrating its commitment to bolstering the country’s export activities. Moreover, the bank is actively engaged in establishing and managing funds connected with exports, maintaining a foreign exchange revolving fund to facilitate the import of foreign inputs for export production.
One significant aspect of NEXIM’s role is its provision of short and medium-term loans to Nigerian exporters. In addition to financial support, the bank offers short-term guarantees for loans granted by Nigerian banks to exporters, ensuring a safeguard against potential risks. NEXIM further enhances the resilience of Nigerian exporters by providing credit insurance, specifically covering political and commercial risks that may arise in the event of non-payment by foreign buyers.
Beyond financial services, NEXIM actively contributes to the facilitation of trade by serving as the government’s National Guarantor under the ECOWAS Inter-state Road Transit program.
7. The Infrastructure Bank
Established in 1992 under Decree No. 51 of Nigeria’s 1992 Constitution, The Infrastructure Bank PLC (TIB), previously known as the Urban Development Bank of Nigeria Plc, is dedicated to catalyzing the swift development of infrastructure throughout Nigeria. TIB focuses on financing commercially viable infrastructure projects with substantial developmental impact, offering customized financial solutions to bolster key long-term infrastructure initiatives.
TIB’s mandate encompasses crucial sectors such as transportation, power, renewable energy, and mass housing. By concentrating on these areas, the bank aims to play a vital role in contributing to Nigeria’s overall infrastructure development.
8. Microfinance Banks
Microfinance banks play a vital role in financial inclusion and economic development, catering to underserved communities and focusing on low-income entrepreneurs. These specialized financial institutions provide essential services, including small loans and savings accounts, to individuals who often lack access to traditional banking services.
Microfinance banks extend small loans to individuals and businesses facing challenges in qualifying for traditional bank loans due to limited collateral or a lack of credit history. These loans serve diverse purposes, such as initiating small businesses, acquiring equipment, or investing in agricultural activities. By offering financial support to these underserved groups, microfinance banks contribute to fostering entrepreneurship and local economic development.
Several Microfinance Banks operate in Nigeria, including AACB Microfinance Bank Limited, AB Microfinance Bank Limited, Abia SME Microfinance Bank, and many others.
However, it’s important to note that these are not the only banks that accept Corpers. As a Corper, be aware that it’s mostly development finance institutions that accept Corps members. Nevertheless, if you have strong recommendations and great connections, commercial banks may make exceptions to their policies for you.
How Much Do Banks Pay Corpers?
The monthly allowances for Corpers serving in any of the aforementioned Banks vary, contingent on the specific bank, the department to which they are assigned in the bank, and the state where the bank is located. Typically, the range spans from N20,000 to N150,000.
Additionally, Corpers serving in many of these banks often receive supplementary benefits, including free accommodation and transportation, among other perks.