The Challenges Facing The Nigeria Banking Industry

The Challenges Facing The Nigeria Banking Industry

ABSTRACT

This design work is the challenges facing the Nigeria banking assiduity. The history of Nigeria banking can be traceable in the early 1820’s with the African banking pot that was established in Lagos but the pot didn’t last as a result of banking habit of the people and accordingly desisted operation in 1890.

This design has to do with the problems competitions government interventions, torments been endured in the Nigerian banking assiduity in this present day conditioning of the banking sector.

This study will essay to bring on colorful problems but could be caused and the challenges for guests and also offer results on how it could be circumvented.

The study which isn’t a result of one exploration but a donation of exploration ideas examines the different measures espoused at different occasions by the central bank of Nigeria to check the challenges facing the Nigeria a banking assiduity.

The exploration styles used are primarily secondary since primary data can not be effectively used at this state of literacy. The experimenter made use of both literal and check exploration system carrying out this examinations.

Eventually, findings recommendations and conclusions are drawn. Grounded on the objects the findings revealed that challenges has to do written competition as far as banking diligence in Nigeria are concerned, and that torture can be run into as a result of these challenges in the banking assiduity. Grounded on the findings, recommendations are made on how to ameliorate the challenges facing the Nigeria banking assiduity.

Chapter One

Preface

Literal Background Of Commercial Banking In Nigeria

The literal background of marketable banking in Nigeria can be traceable to early 1820, where the African banking pot in Lagos established a marketable bank. These pots didn’t last due to some limitation encountered as a result of banking habit of the people and accordingly leased operation in 1890. still, in the same time. The British bank of West Africa( now know as first bank plc) was also in commercial in London and came functional in Nigeria in 1894. also, this bank enjoyed absolute plutocrat of banking business in Nigeria a until 1916 when social bank was established. Due to the dynamic and aggressive operation of social bank, there was a reduction in the dominance of the BBWA( British banking of West Africa). In 1925 a institute of three banks( banclays bank Anglo Egyptian bank and public bank of South Africa) took over the means and arrears of social bank and transubstantiated as banclays bankD.C.O.( dominion, colonizer and over swell). Accordingly, following the emergence of banclayD.C.O.( now on bank of Nigeria of plc) other aboriginal bank of west Africa bank of America chase, mantiattan banketc. it was observe that the aboriginal interest and this led to the establishment of artificial and marketable bank in 1929 with the primary end of taking care of the special banking interest of Nigeria entrepreneurs. Mean while this bank went into liquidation in 1930.

In fresh of the indigenous bank were established which comprise of the Nigeria trafficker bank( 1931), public banking of Nigeria plc( 1933), agbomagbe bank ltd( 1945) African international bank plc( 1947). The indigenization decree of 1973, bought to an end of the operation of aboriginal banks in Nigeria as the decree empowered the civil government to acquired 40 equity share of all aboriginal banks.

Statement Of Study

The task of this study is to identify the extent of challenges facing the Nigeria banking assiduity. The effect of these challenges to either the reduction or increasement of response time to her client needs.

It’s a well- known fact that the competition in the new generational banking conditioning is beginning to give concern to both rich and poor of this frugality. Though attempts has been made by both government and private bodies in trying to look into this word “ challenges ” been faced by trying to meet up with task of answering new generational bank in the services multiple or universal been rendered by banks currently. still, though also central bank of Nigeria has also tried her stylish in look into this problem by the services she renders to these banks similar debts. operation functioning, financial function just to mention but many but still none of this forenamed function seems to help the situation. thus, the so considered dynamic out of all which is the financial function which has to similar financial control ways which is as follows

· Open request operation

· Bank rate

· Moral persuasion

· Liquidity rate

· Legal reserve rate

· Special deposits.

But yet this sweats by the CBN( central bank of Nigeria) seen not to help the situation rather torture are adding in the banks assiduity, as we before reflected that our enterprises isn’t really diverted towards bank torture or her survival rather we’re considering the challenges faced by banks in Nigeria which torture can be given birth to by this challenges as the case may be.

For case, just lately in the month of August 2005, it was aphorism tread in the fiscal news paper that some banks in Nigeria are about or passing torture signals in their conditioning business which i consider is as a result of the challenges been faced. sweats made by utmost banks in trying to meet the oohing gap involve in some illegal sale with some wicked or 419 big men in Nigeria. Who have selfish interest and out there to enrich there tone by all means no mammy what it’ll bring and watch who’s been hurt.

Ideal Of Study

1. To find out the significance of challenges and the effect in the banking assiduity and complication of the business of new generation banking in the country.

2. It helps in perfecting banking operation, competitiveness and productivity.

3. It help to relating the extent to which this challenges been faced by banking in Nigeria has contributed.

4. thus, the study to find out an over view of this challenges to the colorful services being rendered in our bank.

5. It also attempts to find out the colorful problems that could be experience with this talk “ challenges facing Nigeria banking assiduity.