Keyword

Banking reforms, banks effectiveness, fresh graduates’ employment, job insecurity

Abstract

Nigerian banking industry has been experiencing series of reforms from the colonial era to date. Though, the banking reforms in Nigeria were intended to make the banks flourish, reliable and strong enough to finance other key sectors of the Nigerian economy. These objectives challenge the banks operating in the country in terms of their business sustainability, employee job security and customers’ satisfaction. This article provides a chronological overview of banking reforms, implementation, supervisory role of the apex bank and banks’ performance in Nigeria. The current study adopted a critical examination of literature on banking policies, supervisory role of the apex bank and banks performance in Nigeria to establish the influence of banking reforms on banks effectiveness and job security. The quantitative data in the Central Bank of Nigeria statistical bulletin were extracted and analysed. The results show that banking reforms in terms of recapitalisation of banks contributed significantly to the performance of the financial sector in Nigeria as it enabled expansion of the banking network. The capital base enhances banks’ purchasing power in acquiring the IT applications required to fully integrate into electronic banking operations in Nigeria. There were high levels of retrenchment of experienced bankers to reduce the wage bills. Conversely, demand for fresh graduates during the post-consolidation period was high in the banking sector. This study recommends that the reserve bank should also regulate the issue of employee job insecurity in the banking industry.


Full Text : PDF

References
  1. Abdou, H. A., Agbeyo, B., Jones, K., & Sorour, K. (2016). The impact of M&A on the Nigerian financial market: a pre-post analysis. Investment Management and Financial Innovation, 13(1), 9-21. 
  2. Abubakar, A. A., & Tasmin, R. B. H. (2012). The impact of information and communication technology on banks’ performance and customer service delivery in the banking industry. International journal of latest trends in finance and economic sciences, 2(1), 80-90.    
  3. Acha Ikechukwu, A. (2012). Microfinance banking in Nigeria: Problems and prospects. International Journal of Finance and Accounting, 1(5), 106-111.     
  4. Adegbaju, A. A., & Olokoyo, F. O. (2008). Recapitalization and bank’s performance: A case study of Nigerian banks. African Economic and Business Review, 6(1), 1-17.
  5. Agwu, M. E., & Carter, A. L. (2014). Mobile phone banking in Nigeria: Benefits, problems and prospects. International Journal of Business and Commerce, 3(6), 50-70.
  6. Alade, S. O. (2013). Quality statistics in banking reforms for national transformation. CBN Journal of Applied Statistics 3(2), 127-142.     
  7. Alegieuno, J. (2010). Microcredit financing by deposit money banks/microfinance banks and the agricultural sector development in Nigeria. CBN Economic and Financial Review, 48(4), 165-180.     
  8. Anifowoshe, B. D., Genty, I. K., & Atiku, S. O. (2011). The post- consolidation of banks: Human resource management challenges and prospects in Nigerian banking sector. International Journal of Business Management, 6(11), 67-75.     
  9. Atiku, S. O., Genty, K. I., & Akinlabi, B. H. (2011). Effect of electronic banking on employees’ job security in Nigeria. European Journal of Humanities and Social Sciences, 4: 68, 4(2), 69-84. 
  10. Atiku, S. O., & Fields, Z. (2016). The Relationship between Entrepreneurial Culture and Sustainable Competitive Advantage in the Banking Sector. Journal of Economics and Behavioral Studies, 8(2), 26-39.    
  11. Barth, J. R., Caprio, G., & Levine, R. (2004). Bank regulation and supervision: What works best? Journal of Financial Intermediation, 13, 205-248.     
  12. Beck, T., Cull, R., & Jerome, A. (2005). Bank privatization and performance: Empirical evidence from Nigeria. Journal of Banking & Finance, 29(8), 2355-2379.     
  13. CBN. (2004). Central Bank of Nigeria Statistical Bulletin. 15.     
  14. CBN. (2015). Central Bank of Nigeria Statistical Bulletin. 26.     
  15. Country Reports - Nigeria. (2014). Nigeria Country Monitor, 1-19.     
  16. Idowu, O. (2013). Labour and Banking Sector Reforms in Nigeria. European Scientific Journal. May Ed. Vol, 8(9), 166-183.     
  17. Inyang, B. J., Enuoh, R. O., & Ekpenyong, O. E. (2014). The Banking Sector Reforms in Nigeria: Issues and Challenges for Labour-Management Relations. Journal of Business Administration Research, 3(1), 82-90. 
  18. Muhammad, A., Gatawa, N. M., & Kebbi, H. S. B. (2013). Impact of information and communication technology on bank performance: A study of selected commercial banks in Nigeria (2001--2011). European Scientific Journal, 9(7), 213-238.    
  19. Naceur, S. B., & Omran, M. (2011). The effects of bank regulations, competition, and fnancial reforms on banks' performance. Emerging Markets Review, 12, 1-20. 
  20. Ogujiuba, K., Ohuche, F., & Adenuga, A. (2004). Credit availability to small and medium scale enterprises in Nigeria: Importance of new capital base for banks–background and issues. ideas. repec. org/p/wpa/wuwpma/0411002. html, 1-25.     
  21. Okonjo-Iweala, N., & Osafo-Kwaako, P. (2007). Nigeria’s economic reforms: Progress and challenges. Brookings Global Economy and Development Working Paper 6. 
  22. Olayemi, O. J. (2014). A socio-technological analysis of cybercrime and cyber security in Nigeria. International Journal of Sociology and Anthropology, 6(3), 116-125.    
  23. Oluitan, R. O., Ashamu, S. O., & Ogunkenu, O. S. (2015). The effect of recapitalization on bank performance in Nigeria. International Finance and Banking, 2(1), 79-90. 
  24. Onaolapo, A. A. (2008). The implications of capital regulations on banks financial health and Nigerian economic growth 1990-2005. Journal of Economic Theory, 2(3), 112-117
  25. Sanusi, S. L. (2012). Banking reform and its impact on the Nigerian economy. CBN Journal of Applied Statistics, 2(2), 115-122.     
  26. Shen, X. (2015). Private Chinese investment in Africa: myths and realities. Development Policy Review, 33(1), 83-106.     
  27. Soludo, C. C. (2004). Consolidating the Nigerian banking industry to meet the development challenges of the 21st century. Paper presented at the An address delivered to the special meeting of Bankers' Committee-CBN, Abuja.
  28. Somoye, R. (2008). The performances of commercial banks in post-consolidation period in Nigeria: an empirical review. European Journal of Economics, Finance and Administrative Sciences, 14, 62-73.     
  29. Umoren, A. O., & Olokoyo, F. O. (2007). Merger and acquisition in Nigeria: Analysis of performance pre-and-post consolidation. Lagos Journal of Banking, Finance & Economic Issues, 1(1), 1-16.     
  30. World Bank. (2014). Nigeria overview: Economic overview and performance. World Bank Report.