Bank Failures in Nigeria: Causes, Effects and Solutions

Abstract

Banking system in any economy performs very important roles in economic growth and development. However, banking system in Nigeria has not been performing these roles satisfactorily due to crises situations experienced in that industry. It is for this reason this paper investigates ‘Bank failures in Nigeria: causes, effects and solutions. In order to achieve the objective of the study, qualitative descriptive research method was adopted in this study. The analysis is based on the causes, effects and solutions proffer to banking distress in Nigeria. The paper concluded that banking crisis is a global problem but the rate at which it happened in developing countries such as Nigeria is very disturbing.

The paper therefore recommends that government and monetary authorities should put policies in place to reduce the incidence of bank failures. Government should not wait until banking public discovers that a bank is distress before they swing into action. Bank management should tighten their internal control mechanisms and put in place good corporate governance for survival and excellence.