Banking Reforms and the Nigerian Economy, 1990 – 2007.

Abstract

The resultant effect of financial liberalization opened up the Nigerian economy to global financial markets, which has generated increasing apprehension in the economy and has exposed the fragility and vulnerability of her financial system.  It is therefore imperative for the Central Bank of Nigeria to introduce measures that will reduce the exposure and enhance the stability of the nation’s financial system. A defensive measure that will strengthen the existing banks and put the new ones on a firm base is needed.  This led to the introduction of a new capital base of N25 billion.  The study employed secondary data obtained from bank journals, CBN annual reports, NDIC annual reports and magazines.  Also thermatic method was adopted in writing this essay.  In conclusion, the study notes the need to bolster reforms through the deliberate adoption of policies that would ensure convergence of domestic and international rates of return on financial market investments.