Abstract. The series of bank failure in Nigeria have raised doubt in the minds of banking and non banking public about the efficacy of the prudential regulator and its frameworks. This is due to the fact that a substantial number of these groups are questioning the roles of the prudential regulator saddles with the responsibility of regulating and supervising the activities of banks together with the laws governing the operation and conduct of banking business in Nigeria. The incessant failure witness in the banking sector over these years is captured by the number of failed banks, spate of non performing credits, the debt and extent of required capitalization, loss of depositors funds and the general impact on the economy all of which underscores the importance of the sector. A study of this nature examined bank failure in Nigeria and those responsible for such series of failures. It was discovered that the Nigeria banking sector regulatory authorities are responsible and are to be blamed for these incessant rates of failures in the banking sector of the Nigeria economy. We conclude that the failure experience in the sector in recent times is attributed to regulatory laxity on the part of the prudential regulators occasioned by their inability and delay to carry out some of its routine, off site, and on site functions as stipulated in the mandate establishing CBN and failures to ensure compliance to the prudential guidelines.
The increasing reliance on public external debt stocks in Africa and other developing countries has raised the question of debt sustainability, especially in the face of Covid-19, which has forced many counties (both developed and developing) into an unforeseen and unplanned recession. This study contributes to the literature on debt sustainability by examining the effect of public debt on capital formation in Sub-Saharan Africa (SSA) from 2000 to 2008 using the pooled mean group estimation approach. The debt variables considered are external debt stock, debt service on external debt, and interest payment on external debt. Consistent with the overhang theory, our results show that increasing external debt stock and interest payment on external debts only have a marginal impact on capital formation in the short run and exerts a serious negative effect in the long run. Our results also show that debt service burden has a positive effect on gross fixed capital formation in the long run. Therefore, we argue that despite being faced with a huge debt service burden resulting from large external debt stock, SSA countries are not neglecting investments in critical infrastructures needed to drive economic growth. However, we recommend that increasing government revenue base, minimizing economic waste associated with public expenditure, and intensifying negotiations for debt relief may be a plausible way out.
The banking industry have experience tremendous changes ranging from structural changes to technological advances which have turned the industry into self service industry where customer's problems can be solved at any moment despite their location. Since the banking industry is intensely competitive, complex and dynamics due to the fact that all the banks offers same products and services that can easily be copied, as such the only way to differentiate oneself in this complex and dynamic banking environment is to offer same product and service brand with high quality at a cheaper price. However, the study examines how product brands influences customer loyalty in the banking industry in Nigeria. The study adopted the descriptive survey to study twenty two (22) commercial banks in Nigeria. Quarterly data ranging from 2009 through 2014 was collected from the CBN statistical bulletin and the analysis was conducted using mean, median, graphs and pie chart. The results obtained showed that product/service brand with high quality plays a critical role in influencing customers' satisfaction and customers' involvement which leads to customer loyalty.
Abstract. The current recession in Nigeria is characterized by dwindling oil revenue caused by drop in global crude oil price in the market, unfavorable and inconsistent foreign exchange regime, overreliance on imports, high inflation rate and mass job loses, Consequently, the economic recession in Nigeria has led to the following experiences: high cost of living, fall in investment and savings; decline in the activities of stock market, increase in crime rate, high poverty incidence, budget deficit in government spending, high rate of inflation, low domestic production capacity, depreciating value of Naira, scarcity of foreign exchange and high cost of doing business in Nigeria. Furthermore the issues of high interest rates, poor electricity supply, lack of portable water, high cost of transportation and poor state of aggregate infrastructure are resultant effects of the said recession. Some indices reveal that the growth rates in major sectors of the Nigerian economy are either slow or negative. Therefore the declaration by world economics in April 2017 that Nigerian's economy has come out of recession is political and still far from the reality on ground. The indicators of sales manager index (SMI) do not reflect the true position of the Nigeria economy but rather capture the transaction and activities of the political elites who are in the position to spend foreign currency for everything. The study used the misery index (sum of inflation rates and unemployment rates), per capita income or real GDP to determine the economic well being of Nigeria. Our findings show that the average misery index for Nigeria economy for the period under review stood at 29.88% while the average real GDP for Nigeria for the reference period stood at (1.03%). We submit that the acclaim declaration by world economics is not true. We recommend a shift from a mono product economy to a diversified structural based economy driven by agriculture, mining and manufacturing.
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