Appraisal of Gross Domestic Product, Bank Asset Base, Insurance Asset Base, Stock Market Capitalization and Foreign Exchange Reserves in Nigeria on Economic Growth during Financial Reforms.

Abstract

This study was carried out to examine the Impact of financial reforms on Economic Performance in Nigeria. Specifically, the study sought to assess the performance of Nigerian Banks as influenced by changes in the economy as well as changes in other sectors of the financial system. In carrying out this research, secondary data were used while ex-post facto research design was employed. Following a forty   year review of the performance of Nigeria’s economy in tandem with the performance of Banks in the face of the ebbs and flows of the identified parameters. Using both descriptive statistics and analytical methods, regression analyses were conducted and based on the results, it was discovered among other things that there was no significant difference in the growth and development of the economy vis-a-vis bank performance during the pre-reformed compared to the reformed financial era in Nigeria. To this end it was concluded that reforms so far implemented have not significantly move the economy foreword and consequently banks have not also performed as had been expected but rather the reforms have created avenues for executive fiat, corruption and embezzlement of public funds. The study therefore recommended among others that government should ensure that subsequent reform policy thrust be geared toward proper reserves management, efficient stock market operation to enable banks put their capital and asset base to full utilization while insurance sector should be given proper policy consideration for its development. These efforts if pursued vigorously are hoped to make reforms in the financial system effective and capable of moving the economy forward for improved performance of banks in Nigeria.

Keywords: Financial Reforms, Nigerian Banks,  Economy