The banking sector is a vital component in the economic growth of any country in the world, and its operations are mostly governed by laws that are in place to ensure stability, accountability, and financial discipline in the sector. In this article, the law of banking and its impact on the Nigerian economy is reviewed. The article focused on the origin of modern banks and indigenous banks, the meaning and role of banks and bankers, and the legal relationship between banks and their customers. It also explored the legal framework governing banking operations in Nigeria, powers of the central bank over other financial institutions, measures of controlling financial malpractice, legal control of banking personnel, and reasons for insolvency in banking operations. The article analyzed reforms in the Nigerian banking system and their effects on the banking sector in Nigeria. It is found that effective implementation and observation of banking laws are critical in fostering transparency, preventing financial malpractices, and building trust in financial institutions. Effective regulatory policies are critical in addressing banking crises and ensuring sustainable economic development. It is evident that robust legal frameworks and proper regulatory oversight form an integral part of the growth of Nigeria’s banking sector and economy at large. It recommends better enforcement of banking laws, raising awareness of banking laws among the public, and continued banking sector reforms to strengthen the financial system to support economic growth.