Specific emphasis will be given to Bank PHB which is one of the most influential and successful banks in this country. (Obafunmilayo, 2007)
All banks in any part of the world are expected to provide efficient payment systems, conduct financial mediation and serve as platforms for implementation of monetary policies. Consequently, countries whose banks are able to perform these functions efficiently can boost their respective economies by sufficiently channeling and saving funds that can prove to be very useful for those who are planning on setting up their own businesses or carrying out a specific project.
In any country with banking institutions, there are always certain conflicting needs between banks and governments. Banks usually want to operate under liberal market forces yet the Government needs to ensure that the former reflect the fundamentals of the economy. This is actually the reason why the banking sector is one of the most regulated sectors in most world economies and the same applies to Nigeria. This matter is further compounded by the fact that certain actions taken banks are done secretly or in private. Consequently, most of them tend to hide their agenda from the public. (Elumelu, 2005)
The Nigerian banking indust…
It should be noted that in Nigeria, universal banks take up the largest share. others such as community banks usually restrict their consumer base to certain communities. On the other hand, universal banks operate in the entire nation and may sometimes extend their services to other parts of the world.

The Nigerian banking industry has been recording considerable growth over the past few years. This is indicated by the following.
Total deposits
Total assets
Total advances
Total loans
Over the past five years, these numbers have been increasing. Consequently, one can assert that there will be potential growth in the sector.
Competition within the Nigerian banking industry can be classified as oligopolistic. This industry is very saturated but only a small number of banks dominate it. In this case, ten of them are responsible for driving the industry. The dominance of these ten banks is reflected by their market share, loans and advances and their total deposits. As of 2003, it had been established that fifty one percent of the Nigerian banking industry was driven by these companies. (Obafunmilayo, 2007)
There are a number of reasons why the latter industry is oligopolistic. First of all, these banks have established consumer loyalty due to the fact that they are old generation banks. Additionally, some historical facts in the previous decades contributed to this outcome. In the nineteen eighties, there was an emergence of commercial banks that saw the dilution of these old generation banks. However, in the next decade, there were a series of distressed banks that had to be liquidated thus causing the earlier concentration that had characterized the nineteen eighties