BANKING SECTOR REFORMS AND THE PERFOMANCE OF NIGERIAN ECONOMY: INVESTIGATING THE NEXUS.

Abstract

The study looks at the performance of the Nigerian economy from 1998 to 2024 via the lens of how banking policies have changed. The Statistical Bulletin, 2024, published by the Central Bank of Nigeria, was used as a secondary source of data. The research strategy used was an ex-post facto one. One way to measure economic success is by looking at GDP, which is the dependent variable. Explanatory factors include BDL, Credit to the Private Sector (CPS), and Broad Money Supply (M2). Time series econometric models were used to develop and test hypotheses in the study. The results indicate that there is a long-term equilibrium connection between banking reforms and economic performance, and that the variables do not have unit roots. The findings show that changes in banking reforms account for around 68% of the variance in economic performance and that the pace of transition from short-run disequilibrium to long-run equilibrium is 74%. Banking reforms have a substantial impact on the functioning of the Nigerian economy, according to the research. It recommends that the government and central bank establish a more stringent system of bank oversight that prioritises professionalism and caution. Banks should put an emphasis on good corporate governance and risk management in order to stimulate and fortify the economy through well-managed monetary policies.