Bank Failure in Nigeria: Issues and Challenges

ABSTRACT  In spite of various reforms over the years, the Nigerian banking sector has continued to experience a number of bank failures. The period of 1994-2013 witnessed a wave of systemic distress culminating in another round of bank failures. Not-withstanding the heavy impact this ugly and recurring development has inflicted on this sector, the 2004 Banking Sector Reforms swept away 14 additional banks while the 2009 sanitization affected additional 7 commercial banks. The tenacity of bank failure in the country therefore became a matter of grave and utmost concern not only to the entire nation in general but to the practitioners and the academia. The aims of this study are to establish the main factors responsible for bank failure in Nigeria with issues and challenges associated with it, to assess the extent to which these identified factors are accountable for this failure and to ascertain other factors that may be responsible for it. It examines the effect of Bank failure on the economy of Nigeria. Consequently, this work has identified capital inadequacy, lack of transparency, fraud, poor management and huge non-performing loans as major causes of bank failure in Nigeria. These factors were examined and the extent to which they have been accountable for bank failure in Nigeria were determined. Aside these factors, the author did not pay attention to other factors that may be responsible for bank failure which include ownership structure, weak/ineffective staff among others. Simple percentages were used to describe the data presented and the conclusion drawn was that these three factors have been the main reasons of the incessant bank failure. 
TABLE OF CONTENT Title page           Approval page          Dedication          Acknowledgement          Table of contents          Abstract           CHAPTER ONE   1.0 Introduction         1.1 Background of the Study        1.2 Statement of Problem        1.3 Objective of the study        1.4 Significance of the Study       1.5 Research Questions        1.6 Formulation of Hypothesis       1.7 Scope and Limitations of the Study       1.8 Definition of Terms                  CHAPTER TWO          2.0 Literature Review          2.1 Evolution of Banks Failure in Nigeria 2.2  Inadequacy of Capital      2.3 Fraud in Banks 2.4  Huge Non performing Loans 2.5 Disclosure and Transparency       2.6 The poor management control system              CHAPTER THREE 3.0 Research Methodology / Design              3.1 Sample and Sampling procedure      3.2 Instruments for Data collection        (a) Primary sources         (b) Secondary sources         3.3 Methods of Administration of Research Instrument    3.4 Methods of Data Analysis        3.5 Reliability and Validity Tests       
CHAPTER FOUR 4.0 Data Presentation and Analysis        4.1 Data Presentation          4.2 Data Analysis and Interpretation      4.3 Test of Hypothesis                   CHAPTER FIVE 5.0 Summary of Findings, Conclusions and Recommendations   5.1 Summary of Findings and their Implications     5.2 Conclusions          5.3 Recommendations         Bibliography