Skip to main content
Article thumbnail
Location of Repository

The law and policy of financial regulation and deregulation of Nigerian banking system

By Olukayode Adesope Adeeko

Abstract

This thesis is a study of banking regulation in Nigeria. It has three main objectives: to\ud explain the evolution and impact of banking regulation after independence to discuss the\ud reasons for the persistent failure of financial regulation; and to highlight the role of\ud external agencies in Nigeria's financial system.\ud The thesis offers a historical perspective on the developments in Nigerian banking\ud regulation, but focuses mainly on the period after independence. It examines the economic\ud and political theories that have influenced financial regulatory trends in Nigeria. It\ud considers these theories in their political and legal context. The thesis does not embrace\ud any theory in particular. Instead, its approach is pragmatic and comparative focusing on\ud the interaction between legal, political and institutional factors that have influenced\ud financial regulation in Nigeria.\ud The study shows that the pre-liberalisation regulatory norms were repressive and\ud inefficient. It argues that banking deregulation was introduced as an economic revolution\ud devoid of necessary corresponding political and legal changes. The core destabilising\ud factors are identified as inadequate regulatory powers, political corruption, political\ud instability, legal instability, policy distortions, and incongruous laws. The complicity of the\ud IMF and World Bank in this process is also discussed. Financial deregulation was\ud prompted by predatory politics characteristic of the Nigerian state; yet, deregulation has\ud aggravated the country's political instability and exacerbated prebendalism. The thesis\ud discusses policy options to break this vicious circle

Topics: HG, KN
OAI identifier: oai:wrap.warwick.ac.uk:4258

Suggested articles

Citations

  1. (1994). (Director of CBN Research), The Economics Of Controls And Deregulation The Nigerian Case Study,
  2. (1985). (N'Million) Year Total To Private To Government Sector Sector
  3. (1992). 0., Alilifarv Rule Aiicl Cotisfitithonah. vm, Spectrum Law Publishing. lbadan,
  4. (1986). 0., Nigeria - The Search for Ecommic Stabillýv, Onestop Desigon and Print,
  5. (1967). 0., Nigeria: 7he Dei, clopment of its Laws and Constitution,
  6. (1989). 38
  7. (1993). 5 And Economic Development In Nigeria.
  8. (1982). 7he Depository Firms atid Itidustry,
  9. (1981). A (" nsoutional History of Nýgeria,
  10. (1992). A century of banking : Lessons for Deposit Banking -. Lessons for Banks Deposit Protection,
  11. (1976). A Note on Some Aspects of Money and Capital Markets in Lowest Income Countries ",
  12. (1960). A Program for Monetary Stability,
  13. (1980). A Survey of Nigeria's Modem Financial System "
  14. (1923). A Tract on Monetary Reform, Ist ed.,
  15. (1983). Allacroeconomics: Applicable Models for the Third World,
  16. (1976). Alternative Stabilization Policies for Less-Developed Economies " ,
  17. (1991). An Appraisal of the supervisory role of the Central Bank of Nigeria over commercial banks under the Central Bank of Nigeria and the Banks and other Financial Institutions' Decrees
  18. (1992). An Overview Of The Nigerian Banking Industry - Past, Present And Future " in A Decade of Itmovalive Bankers Training,
  19. (1993). An Overview of the Shift from Direct to Indirect Approach to Monetary and Credit Control in Nigeria ",
  20. Analytical Aspects of Interest Rate Policies
  21. (1979). Analyzing Regulatory Failure -. Mismatches, Less Restrictive Alternatives, and Reform ",
  22. (1970). And Banking : Theory, Analysis, And Policy, Random House,
  23. (1980). and Klaus-Walter Riechel ," Multipurpose Banking - Its Nature, Scope, and Relevance for Less Developed Countries ",
  24. (1997). Arup and Hafez Ghanern ," Does the Type of Political Regime Matter for Trade and Labor Market Policies "
  25. (1992). b= Nigerian industnal Development Bank owns 60% while NICON owns 30% c= Warehoused pending sale d= This includes NICON's shareholding e=
  26. (1994). Bank Failure And The Rest Of Us ",
  27. (1975). Bank Funds Management in an Efficient Market ",
  28. (1997). Bank of England vs the IBRD: Did the Nigerian Colony Deserve a Central Bank? ",
  29. (1998). Bank Share Capital Regulation in Nigeria ", [
  30. (1994). Bankers Against Industry ",
  31. (1986). Banking & Public Finance in Aftica,
  32. (1998). Banking And Debt Recovery: A Comparative Stutty Of 7-he Law And Practice In
  33. (1970). Banking and Interest Rates in a World Without Money ",
  34. (1997). Banking Crises
  35. (1993). Banking Reforms In Nigeria - An Appraisal Of Its Effects On Banking Operations " in The Challenges And Management Of Change In The Nigerian Financial System,
  36. (1972). Bankitýg Atid Ecotiomic Developmew : Some Lessotis qf History,
  37. (1997). Bassey " UAC Boss Calls For Credit Card ",
  38. (1998). Blackstone's Guide to the Batik of EnglandAct
  39. (1985). Bureaucracy, atid Ecotiomics,
  40. (1973). Capital in Economic Development, The Brookings Institution Washington,
  41. (1993). Capital requirements of German banks and the European Community proposals on banking supervision "
  42. (1967). Ceniml Banking in the Emergitkg Countri . es,
  43. (1993). Central Bank Of Nigeria, "Closing Address" at the Seminar for Bank Directors And Chief Executives in the Public And Private Sectors, in National Economic Recovery, (Financial Institutions Training Centre,
  44. (1960). Central Bank of Nigeria, Ekundare,
  45. (1993). Central Bank Policy - Goals and Reality "
  46. (1997). Civil Liberties, Democracy, and the Performance of Government Projects "
  47. (1990). Closing Address of the 1990 Bank Directors Seminar "
  48. (1967). ColoWal Developmetif atid Good Govertiment,
  49. (1997). Comments on 'Financial Liberalisation and Bank Restructuring in SubSaharan Africa- Some Lessons for Sequencing and Policy Design",
  50. (1997). Comments on 'Perspectives on Financial Regulation and Liberalisation in Africa Under Incentive Problems and Asymmetric Information ",
  51. (1987). Constitutional Law and Military Rule
  52. Crisis And Conflict In Nigeria, A Documentan, Sourcebook 1966-1969, Vol II,
  53. (1971). Crisis Atid Cotiflict M Nigeria, A Documemary Sourcebook 1966-1969, VoL I,
  54. (1997). Democracy And Development ",
  55. Deregulation In the Nigerian Banking Industry :A Review and Appraisal", (l 99 1) CBN Ecommic Atid Fitiancial Revieu',
  56. (1995). Development Theory And The Three Worlds: towards an internalional political economy of development, Harlow: Longman Scientific& Techtilcal,
  57. (1960). Developments and Innovations in the Nigerian Financial Environment Since
  58. (1970). Developments In The Banking And Finance Industry -Institutional Framework
  59. (1986). Director of CBN Research and Head of Fiscal Analysis Division), Fiscal Operations of the Federal Government since
  60. (1990). Discussant "
  61. (1993). Discussion ", in Growth And Stability Of Nigeria's Financial Services Industry, Papers and
  62. (1992). Distress In The Financial System ", in The Nigerian Bankinýg And Finance Industry In Transition : Shaping The Future, (Financial Institutions Training Centre,
  63. (1980). Domestic atid Mullinatiotial Bankitig : The Effects of Motielary Policy,
  64. (1962). Economic Backwardness in Historical Perspective: A Book of 1, -'ssays,
  65. (1976). Economic Growth and Financial Intermediation "
  66. (1997). Economics and the Law: Too Much One-Way Traffic ?"
  67. (1993). Essqv.,; in the Piibhc I"hilosopki, of Developmeni, Fol. 3 .-Growth and Structure qf the Nkgeria Ecotioni. v, Fourth Dimension Publishers, Enuizu,
  68. (1989). Exchange Rate Arrangements and Monetary Policy "
  69. (1994). f World Histoty, Larousse pic,
  70. (1992). fhe Nýgeriati Bankitig Systeni iti the cowext of policles qffinwicial regulanoti at7d derqgii1atioil,
  71. (1972). Finance and Development Planning in Turkey,
  72. (1993). Financial Cfisis, Reform And Stabilization: The Chilean Experience" in Shakil Faruquee
  73. (1973). Financial Deepening in Economic Development,
  74. (1986). Financial Development in the Pacific Basin Market Economies "
  75. (1994). Financial Distress In Banks - Nature And Implications "
  76. (1994). Financial Distress In Banks : Nature And Implications ", 7-he Nýgerian Batiker,
  77. (1990). Financial Factors
  78. (1977). Financial Intermediation and Economic Growth in Less- Developed Countries :A Theoretical Approach ",
  79. (1997). Financial liberalisation and Bank Restructuring in Sub-Saharan Affica : Some Lessons for Sequencing and policy Design "
  80. (1996). Financial Liberalization & Investment,
  81. (1984). Financial Liberalization and the Debt Crisis in LDCs: The International Misregulation of Commercial Banks",
  82. (1996). Financial Liberalization in Developitkg ("ountries,
  83. (1988). Financial Liberalization in Retrospect* Interest Rate Policies in LDCs ",
  84. (1987). Financial Market Liberalization in LDCs - The Incidence of Risk Allocation Effects of Interest Rate Increases ",
  85. (1980). Financial Policies ".
  86. Financial Policies, Growth and Efficiency ", (World Batik Workilýg Paper, Country Economics Department,
  87. (1979). Financial Reform and Capital Flows in a Developing Economy ",
  88. (1980). Financial Reform and Stabilization Policy in a Developing Economy ",
  89. (1988). Financial Regulation or Over-Regulalion?, Institute of Economic Affairs,
  90. (1984). Financial Repression, the New Structuralists, and Stabilization Policy in Semi - Industrialized Economies ",
  91. (1986). Financial Sector Liberalization under 011gopolistic Conditions and a Banking Holding Company Structure"
  92. (1993). Financial Sector Reforms And Liberalization- Welcome Address",
  93. (1984). Fiscal Deficits and Balance of Payments Disequilibrium, in IMF Adjustment Programs "
  94. (1981). Fund Conditionality, Evolution of Principles
  95. (1980). Fundamental Problems Of Banking In Nigeria ",
  96. (1985). Government Policy and the Development of Financial Markets The Case of Korea ",
  97. (1987). Historical Dictionary of Nigeria,
  98. (1993). I" Financial Repression and Economic Development- Towards a PostKeynesian Alternative ",
  99. (1980). Ihe Foundations of Nigeria's financial hiftastriicture,
  100. (1996). Ihe Good Society: The Humane Agenda,
  101. (1980). Ihe Nýgeriaii Fitimicial Simem,
  102. (1988). Ihe Nýgerian Lcm, Of Consumer Credit And Security,
  103. (1996). Ihe Open Sore qf A C"onfinent :A I)ersonal Nai'rative of the Nýgeriall 0-i-viN,
  104. (1994). Ihe Prudential Regulation of Banks,
  105. (1970). Ihe Stand-By Arraiýgements of the Inteinational Alfonelary Fun& A Commentary, on neir Formal, Legal and Financial Aspects, International Monetary Fund,
  106. (1993). Implementation of Indirect Monetary Control In Nigeria . Problems and Prospects ",
  107. (1983). Incentive Effects of Terminations : Applications to the Credit and Labor Markets ",
  108. (1995). Incentives And The Resolution Of Bank Distress "
  109. (1986). Inefficiencies from Financial Liberalization in the absence of WellFunctioning Equity Markets "
  110. (1967). Inflation and Interest Rate Policies in Latin America,
  111. (1976). Inflation, Financial Repression, and Capital Formation in Latin America "
  112. (1986). Institutionalised Nlonopsonistic Capital Markets in a Developing Countries"
  113. (1996). Intematiotial Finatice, Tratuactiotis, PolicY, Atid Replallon,
  114. (1978). Interest Rate Ceilings, Efficiency, and Growth-. A Theoretical Approach " (New Haven -
  115. (1989). Interest Rate Interactions Between Dual Financial Markets ",
  116. (1983). Interest Rate Management in LDCs "
  117. (1970). Interest Rate Policies in Selected Developing Countries,
  118. (1992). Interest Rates Behaviour Under A Programme Of Financial Reform The Nigerian Case ",
  119. (1985). Is An IMF Stand-By Arrangement A "Seal of Approval" On Which Other Creditors Can Rely? ",
  120. (1996). Is Deposit Insurance Inevitable? Lessons From Ar gentina,
  121. (1986). Issues in the Financial Sector "
  122. (1995). Key Issues In Contract,
  123. (1993). Keynote Address ",
  124. Law and Econonucs : Its Glorious Past and Cloudy Future"(1997) 64
  125. (1997). Law Atid Ecotionucs,
  126. (1990). Legal and Institutional Framework for the Control and Prevention of Cnme in the Banking Industry "
  127. (1989). Legal Aspect Of Stnictural Adjustment Programme In Nýgeria,
  128. (1991). Legal Framework For Establishing A Bank In Nigeria .A Critical Appraisal "
  129. (1996). Legal Framework For Privatisation Of Banks
  130. (1992). Legal issues ill Banking, Insurance and Corporate Law, (The Faculty of Law,
  131. (1992). Legislative And Institutional Developments In The Banking Industry ", in A Decade of itmoialwe Batikers Traitthýg% (Financial Institutions Training Centre,
  132. (1985). Lessons for Debtor - Country Managers and Policyrnakers
  133. (1975). Liberalization, Crisis, Intervention : The Chilean Financial System,
  134. (1993). Litinlitig ('etural Batik Credit to the Governmetit : Theory,
  135. (1995). Longman, Fifth edition,
  136. (1989). Macroeconomic Instability and Moral Hazard in Banking in a Liberalizing Economy "
  137. (1990). Malpractices in the Banking Industry "in
  138. (1996). Managing Credit for the Rural Poor: Lessons from the Grameen Bank",
  139. (1992). Me Evolution And Performance Of Monetag Policy In Akgeria
  140. (1986). Me Regulation and Supervision of Fitiaticial Itislitution, The Institute of Bankers,
  141. (1922). Me thial mandate in British tropical Africa,
  142. (1980). Merchant Banking in Nigeria" In
  143. (1994). Modem Batikitkg Lmv,
  144. (1970). Monetary Policy Instruments In
  145. (1993). Monetary Policy Instruments In Nigeria - Their Changing Nature And Implications
  146. (1991). Money and Capital Markets in Nigeria Todm,.
  147. (1965). Money and Econon-k Growth ",
  148. (1967). Money in a Neo-Classical Growth Model ",
  149. (1978). Monýy And Capital Markets
  150. (1986). New Patterns of Financial Instability "
  151. (1963). Nigen a, Backgroutid to Natioiiah. ým,
  152. (1994). Nigeria : ownership abandoned "
  153. (1965). Nigeria " in Cfick,
  154. (1996). NIGERIA ",
  155. Nigeria to 1993: Will Liberalisation work ?,
  156. (1983). Nigeria's economic and industrial development - which wm, 'ý,
  157. (1969). Nigeria's Indigenous Banks ", Bankers'
  158. (1985). NigeriaAnd the IMFJbadan,
  159. (1987). Nigerian Banking Structure And Performance, (Research Monographs in Banking and Finance
  160. (1992). Nigerian Economic PolicY and Performance : 1981-92, Centre for the Study of African Economies,
  161. (1979). Nýgeria And The Evolution Lagos,
  162. (1986). Nýgerian Economic Development And International Externalities,
  163. (1988). O'DriscolJr.: Bank Failures : The Deposit Insurance Connection
  164. (1995). Oil and the Democratic Imperative in Nigeria "in
  165. (1981). On being Grandmotherly: The Evolution of IMF Conditionality,
  166. (1984). On the Efficiency of the Financial System ",
  167. (1995). Overcomhýg Lcav,
  168. (1985). Overview and Summary ",
  169. (1963). Ownership of the Nigerian domestic public debt 1963 - 85 Percentages of total debt Year Central bank Comm. banks Non- bank public
  170. (1994). Papers and Proceedings of the Bank Directors' Seminar,
  171. (1988). Perspective on Finance, Banking and Economic Policv,
  172. (1978). Pitfalls in Partial Adoption of the Mckinnon-Shaw Development Strategy: The Nepalese Experience ",
  173. (1994). Political Economy And The Changitkg Global Order,
  174. (1987). Political Survival : Politics atid Public Pol University of Califomia Press,
  175. (1976). Preferred sectors/sub-sectors (1)
  176. (1996). Privatisation Of Government Owned Banks And The Isuie Of Ownership And Control,
  177. (1996). Problems And Challenges Of Developing An Efficient Payments System In Nigeria " The Nigerian Banker,
  178. (1996). Prospects of Society For Worldwide Interbank Financial Telecommunication (SWIFT)
  179. (1992). Questions And Comments " in The Nýgerian Banking And P'inance Industry In 1ýansllion : Shaping Ae Future,
  180. (1963). r_ u C, =3 ch 2C 2= -rcia M Jhie C-3 C: 3 cu u V) 341 APPENDIX 2 Ownership of the Nigerian domestic public debt 1963 - 85 Million naira Year Central bank Comm. banks Non- bank public Total
  181. (1986). Rates, Spreads, and the Costs of Intermediation : Two Studies, Washington,
  182. (1972). Rationality, and Irrationality in Economics, Monthly Review Press,
  183. (1991). Recent Development in the Legislation And Regulations Governing the Establishments and Administration Of Banks In Nigeria " in Advaticed Law atid Practice Of Batikitkg Ih Nýgeria, (Financial Institutions Training Centre,
  184. (1997). Recovery of Interest by Banks: A Critical Examination of Nigerian Case Law",
  185. (1996). Redesigning Nigenan Institutions For Economic Growth "
  186. (1969). Reflectiotis Of An Economic Policy Maker Speeches And Congressional Statements
  187. (1989). Regulation and Markets, The
  188. Regulatory Administration In Nigeria Today : An Examination Of The Role Of Law And The Lawyer In
  189. (1995). Replation Of Trade And Investment In
  190. Report on the Semýinar on Macro-Economic Policy Analysis for CBN Executive Staff,
  191. (1952). Requirements for Minimum Paid-up Capital in Nigeria (N) Year Commercial Banks Merchant Banks Indigenous Expatriate
  192. (1976). Reserve Requirements and Monetary Control ", E-cotiomic COuticil qf ('atiaila Discus.
  193. (1990). Responses of the Finance sector to Environmental Changes : Past , Present and Future "
  194. (1993). Restructuring Nigeria's Financial System For Economic Recovery "
  195. (1983). Review of Financial Sector
  196. (1973). Savings Mobilization in DevelOPing Countries.
  197. (1997). Shifting Fortunes - The Political Economy of Financial Liberalization in Nigeria ",
  198. Since 1970, A political atid cconomic outline, Hodder And
  199. (1974). Some Principles of Inflationary Finance ", (
  200. (1965). Stability, and Inflationary Finance ",
  201. (1994). State And Law
  202. (1990). Stiglitz ," Introduction Imperfect Information and Rural Credit Markets - Puzzles and Policy Perspectives
  203. (1994). Structural Changes And Conflicts In The Financial System ",
  204. (1997). Substituting for the State - Institutions and Industrial Development in Eastern Nigeria "(
  205. (1969). The Administration of Nigeria 1900-1960 : Men, Methods and Myths,
  206. The Argentine Banking Cnsis of 1980 ",
  207. (1997). The Case for ati hifernalimal Battking Slatidard, Institute for International Economics,
  208. (1995). The Central Bank And The Financial System,
  209. (1995). The Challenges For Economic Management In Nigeria ",
  210. (1992). The Changing Roles And Functions Of The Banking Industry In A Developing Economy " in ne Nigerian Banking And Finance Industry In Transition : Shaping The Future,
  211. (1975). The Chilean Financial System,
  212. (1995). The Conduct of Monetary and Banking Policies By the Central Bank of NiQeria ",
  213. (1994). The Control of the monetary and Banking System by the Central Bank of Nigeria ",
  214. (1970). The development of banking habit in Nigeria "a paper presented at the A nnual
  215. (1977). The Development Performance of the Nigerian Military Regime,
  216. (1954). The E-cotiomic Dei-elopmem of Nigeria, Johns
  217. (1988). The Economics of Regulation: Principles and Institutions, Cambfidge,
  218. (1994). The efficiency of financial systems, liberalization, and economic development ".
  219. (1990). The Emergence of Computenzed Banking Transactions :A Case for Legislative Control "
  220. (1994). The Financial System And National Economic Objectives "
  221. (1984). The Growing Role of the IW's Stand-By Arrangements "
  222. (1990). The IMPACT of OIL oti a DEVELOPING COUNTRY, The Case of Nigeria,
  223. (1995). The Impact Of Regulation And Deregulation On The Banking Sector : Role of Regulators And Operators ",
  224. (1988). The Interest Rate Structure and Factors Affecting Interest Rate Determination in the Informal Credit Market in Sri Lanka "
  225. (1998). The Law And Politics Of Conslitution-Making In
  226. (1994). The Lcotiomics Of Cowrols Atid Deregulation : The Nigerian Case Stuck,
  227. (1972). The Life qf John Maynard Keynes, Pelican biographies, Pelican Books,
  228. (1995). The Main Determinant of Inflation in Nigeria ",
  229. (1987). The New Structuralist Critique of the Monetarist Theory of Inflation "
  230. (1966). The Nigerian Banking System,
  231. (1988). the Nigerian domestic public debt
  232. (1980). The Nigerian Money Market " in
  233. (1988). The Nigerian State,
  234. The Order Of Liberalization Of The External Sector In Developing Countries, (Essays
  235. (1980). The Political Economy Of Repilation : Creating, Designing and Removing Repilatory Forms,
  236. (1993). The POlitics of Structural Adjustment
  237. (1990). The Role of Bank Directors in the 1990s "
  238. (1968). The Role of NIoney in a Simple Growth Model ",
  239. (1993). The Role of The Central Bank of Nigeria in Monetary and Banking Poficy Measures ",
  240. (1993). The Role of the State
  241. (1997). The Roundtable Discussion ",
  242. (1993). The State ut Aftica : The Politics of Ihe Belly,
  243. The Theory of Economic Regulation " (1971)2
  244. (1995). The Transformation Of
  245. (1993). The Transition to Civil Rule : Sapping Democracy "in
  246. (1991). The World Bank & Policy - based Lending,
  247. (1979). The World Barik- And Nigena "
  248. (1991). The World Development Report
  249. (1974). Theofies of Economic Regulation "
  250. (1960). Total Assets and Number of banks in Nigeria
  251. (1881). Trade and Imperialism in
  252. (1970). Trends In The Regulatory Framework In Banking Legislation From
  253. (1992). Under Stress,
  254. (1989). Unorganised Money Markets and 'Unproductive Assets' in the New Structuralists' Critique of Financial Liberalization"(
  255. (1984). Unorganized Money Markets in LDCs : The Mckinnon - Shaw Hypothesis versus the Van Wijnbergen Hypothesis "
  256. (1980). Vignettes on the World Capital Market "
  257. (1995). Wafiation of Interest Rates in Loan Agreement",
  258. (1996). Why and When Do Governments Initiate Public Enterprise Reform? ",
  259. (1993). Workshop for Bank Directors, (Financial Institutions Training Centre,
  260. (1959). Years Of Central Bankitig In Nigeria :

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.