Reforms in the Nigerian Banking Sector: Implications, Issues and Challenges

Abstract

The focus of this paper is on the implications issues and challenges of banking industry reforms from 1986-2009 and beyond. This is the era of banking deregulation or expansionary banking era, which incorporates government policy thrust and adopted by the Regulatory authorities towards a healthy financial system in Nigeria. In pursuit of the focus of this paper: it treats numerous issues. It did an overview and x-ray in detail the nature of the banking reforms in Nigeria between 1986 – 1995 Structural Adjustment Programme Era (SAP), Post SAP Era (the guided Deregulation and Globalization Ear 1996 and beyond). Furthermore, it critically examines the current banking reforms since 2004 and its development implications on the economy. The paper concludes that if the current reform is well implemented, it will positively impact on meeting the development challenges facing the country and could strengthen the operational efficiency of the financial system which could accelerate the pace of sustainable economic development.