FEDERAL SAVINGS BANK DECREE, 1974
Decree · Finance
Policy date: 2020-01-01
A Decree establishes the Federal Savings Bank to mobilize small savings through post office networks. It targets low-income Nigerians and rural communities to provide basic banking services.
FEDERAL SAVINGS BANK DECREE, 1974
What Is This Policy?
A 1974 decree establishing the Federal Savings Bank to mobilise small savings from low-income Nigerians through post office savings accounts and provide basic banking services to the unbanked.
Who Does It Target?
Low-income Nigerians with small savings Rural communities lacking commercial bank access Postal workers operating savings services Federal Ministry of Finance
What Does It Aim to Achieve?
Extend basic savings services to all Nigerians, especially those in rural areas and low-income groups, through a government-backed savings institution using the postal network.
Key Features
Post Office Savings: Federal Savings Bank operated through Nigeria Postal Service outlets nationwide. Low Minimum Deposits: Designed for small savers with very low minimum deposit requirements. Government Guarantee: Deposits backed by the full faith of the Federal Government. Financial Inclusion: Aimed to bring small savers into the formal financial system.
Current Status
Rollout Stage: Bank is currently largely inactive; a bill was introduced to repeal the Act in 2020 Coverage: Historical nationwide savings banking Beneficiaries: Historical — small savers; rural communities Funding: Federal Government capitalisation
How to Access
Bank currently not actively operating A 2020 repeal bill was introduced to formally close the institution Application method: Not applicable — bank currently inactive.
Important Terms
A repeal bill was introduced in the National Assembly in 2020 Former depositors should contact the Federal Ministry of Finance for status of dormant accounts Microfinance banks and mobile money operators now serve the original target population
Official Resources
Website: https://www.finance.gov.ng Contact: Federal Ministry of Finance
Legal Framework
The Federal Savings Bank Decree 1974 is recognized under Section 315 of the 1999 Constitution as an existing law. It operated under the Central Bank of Nigeria Act and the Banking Act applicable at the time. The Federal Savings Bank has been largely dormant and is subject to a repeal bill. The Banks and Other Financial Institutions Act 2020 and the Nigeria Deposit Insurance Corporation Act provide the current framework for small savings mobilisation.