Banking Reform Policies in Nigeria: The Strategic Options

Abstract

The history and evolution of banking in Nigeria have been marked by a series of reforms ranging from legal, structural, operational, and regulatory to supervisory and capital base wise. The main thrust of banking reforms remains to reposition and strengthen banks and the financial system to withstand competitive pressure and play their role of financial intermediation effectively and efficiently. However, the purpose for which these reforms have been designed to achieve have not been attained remarkably as records of poor performance in the industry after each successive reform abound in the country. This article was designed to evaluate the various banking reform policies in Nigeria and the strategic options needed to ensure stability, soundness, and high performance in the industry. A long-term broad-based economic and social reform with interval, continuous, and voluntary consolidation options, as well as grass root entrepreneurship development with bank participation, have been put forward.