REGULATORY AUTHORITIES AND THE PERFORMANCE OF NIGERIAN BANKS: AN APPRAISAL

¹Oladejo, Morufu. Oladehinde and ²Oladipupo, Abiodun. U

¹Department of Management and Accounting, Ladoke Akintola University of Technology, Ogbomoso,

²Department of Business Administration, Olabisi Onabanjo University, Ago – Iwoye, Ogun State

e-mail: moolad02@yahoo.co.uk; abbeladd@yahoo.com

ABSTRACT

The recent development in the Nigerian financial institutions has become subject of concern for Accountants and other practitioners as far as performance measurement and predictions for investment decisions are concerned. The paper attempts to investigate the role of Regulatory Authorities on the development of the Nigerian banks especially those that bother on financial performance of this heart of the economy. A survey research was adopted using a structured questionnaire administered on selected operators in the Nigerian banking sector. Data collected was analyzed through percentage Analysis and hypotheses tested using chi- square statistics at 0.01level of significance. The result showed that Regulatory Authorities have been effective in curtailing distress in the Nigeria banking system, the Regulatory and Supervisory activities of the CBN and the NDIC have boosted depositors’ confidence in the Banking System and that further recapitalisation of Nigerian banks would provide permanent solution to banking crisis. However the proposal for the reduction in the number of banks from the present consolidated 24 to only three may need further reappraisal.

Keywords: Regulatory authorities, Regulatory Approach, Banks performance, Nigerian Banks, Recapitalisation, Banking crisis.