The African Financial Review July-August 2014 | Page 18

Bank reforms and perfomance of banks
in Nigeria

By Olokoyo, Felicia Omowunmi

Bank reforms have played a role in the performance of banks in Nigeria. The purpose of the study
was to access the effects of the reforms on the performance of banks in Nigeria. The data required
for this study was gathered through the instrument of questionnaire. One hundred (100) copies of
questionnaires were administered out of which eighty (80) copies were collated for the analysis.
To achieve the objectives of the study, two (2) hypotheses were formulated from the structure of
research questions while Analysis of Variance (ANOVA) method was used to test the hypothesis
using the statistical package for social sciences (SPSS). The study shows that the recapitalization
and consolidation process has had significant effect on the manufacturing sector of the economy
and thus on the Nigerian economy at large. The study further reveals that despite the reforms, post
consolidation challenges like challenges of increased return on investment still exist. According
to some sections of the Nigerian populace, the reforms are seen to have come too soon and thus,
rendering sections of the economy such as the lower class, illiterates and the economically active
poor, incapable of banking transactions. The reforms however is very necessary for our banks to
imbibe best corporate governance practice, improve on self-regulation, institute IT-driven culture
and seek to be competitive in today’s globalizing world.

18 | The African Financial Review