Financial Sector Reforms in Nigeria: a chronological overview
Abstract
Nigeria banking system over the years has undergone various phases that tend to have eroded
confidence on the side of the customers and investors due to the bank failure recorded in the past.
These instabilities and bank failure in the Nigeria financial institution had limited credit expansion
meant for enhanced investment purposes and economic growth. The paper thus examined banking
sector in Nigeria, and highlighted various banking reforms carried out in the past since 1986. It
tracked the growth of the Nigeria banking sector in response to the reforms implemented over the
past three decades. It was discovered that Nigeria has enjoyed a substantial bank-based financial
sector development over the years, and its institutional framework has also grown stronger. These
frameworks were adopted to break the oligopolistic structure in the industry, to promote compet
ition, creativity, increase capital base and efficiency in banking service delivery. However, the
entire banking reform objectives have not been entirely achieved as few banks still controls larger
percent of deposit market and existence of high rates of non-performing loans within the banking
system remains a challenging task.
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