The African Financial Review July-August 2014 | Page 22

Table 2: ANOVA analysis of hypothesis 1
Sum of
squares

Mean
square

F

Sig.

14.818
32.670
47.488

4 75 79

3 .704 .436

8.504

.000

Sum of
squares

Source: Author’s Computation

Between groups
within groups
total

Df

Df

Mean
square

F

Sig.

7.739
19.811
27.550

4 75 79

1 .935 .264

7.325

.000

Table 2: ANOVA analysis of hypothesis 2

Source: Author’s Computation

Between groups
within groups
total

of the entire banking sector. From the findings of this study,
it is established that there is an impact of bank reforms on the
performance of banks as well as on the Nigerian economy. It
is therefore important that these new evolved banking groups
understand the implications of their consolidation in order to
be a successful unit, both in the short and long run which will in
turn benefit the banking industry and the Nigerian economy at
large. It is clear that the reforms has affected the performance of
the banking sector over the period, thus for a stronger and more
resilient banking and financial system, banks need to improve
their current state of development to be truly classified amongst
the top banks in the world. This paper is of the opinion that
some of the reforms 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.
A very good example is the cashless policy in Lagos State, and
also the minimum withdrawal requirement set upon banks by
the Central Bank of Nigeria. This paper therefore recommends
that the implementation of these newer reforms should be
made to evolve in a gradual process for proper enlightenment
and entrenchment. The Central Bank of Nigeria (CBN) should
endeavor to capture the short and long term implications, on all
sectors of the economy particularly the rural sector, when making
future policy recommendations. The banks should endeavor to
drive zero tolerance for inadequate corporate governance and
imbibe best practices, improve on self-regulation, institute ITdriven culture and seek to be competitive in today’s globalizing
world. This would ensure that the public sectors confidence in
them is guaranteed.

“The Experience of Banking Supervision in Financial Sector
Surveillance”,
Central Bank of Nigeria Bullion, Vol. 28, No.1, Pp. 49-53. Lagos:
Central Bank of Nigeria.
Imala, O. I. (2005); “Consolidation in the Nigerian Banking
Industry: A Strategy for Survival and Development”, Paper
presented to the Nigerian Economics Students’ Association
(NESA), University of Abuja Chapter.
Kanayo O. (2011), Financial Sector Reforms in Nigeria: Issues and
Challenges, Enugu, African Institute for Applied Economics.
Lemo, T. (2005), “Regulatory Oversight and Stakeholder
Protection” , Paper presented at the
BGL Mergers and Acquisitions Interactive Seminar, held at Eko
Hotels & Suits. V. I. Maddala, G.S (1997), Econometrics, New York
McGraw-Hill.. 17, pp. 21-23. Soludo, C. (2004), “Consolidating
the Nigerian Banking Industry to Meet the Development
Challenges of the 21st Century”. Being an address delivered to
the Special Meeting of the Bankers’ Committee, held on July 6,
at the CBN Headquarter, Abuja.
Soludo, C. (2006), “Financial Sector Reforms and the
Real Economy”, a Speech to the Council of Fellows of the
Pharmaceutical Society of Nigeria.

Adegbaju, A.A. and F. O. Olokoyo (2008), “Recapitalization and
Bank’s Performance; A case study of Nigerian Banks” African
Economic and Business Review,Vol.6, No.1.pp 1-4.

Soludo, C. (2006b), “Beyond Banking Sector Consolidation in
Nigeria”, Presentation at the Global Banking Conference on
Nigerian Banking Reform, available online at: http://www.
cenbank.org/out/Speeches/2006/Govadd29-3-06.pdf [Accessed
17 June 2008].

Afolabi J.A. (2004), “Implications of the Consolidation of Banks
for the Nigerian Banking System”, Paper presented at the NDIC
organised Workshop for FICAN Enugu.

Uchendu, O. A. (2005), “Banking Sector Reforms & Bank
Consolidation: The Malaysian Experience”, CBN Bullion Vol.
29, No2.

References

Central Bank of Nigeria (2006), Banking Supervision Annual
Report, Abuja, CBN Press. Central Bank of Nigeria (2011),
Monetary Policy Reform, Abuja, CBN Press. Imala, O.I., (2004);

22 | The African Financial Review