APPRAISAL OF THE IMPACT OF BANKING SECTOR REFORMS ON THE REAL SECTOR OF THE NIGERIAN ECONOMY (1986 - 2009)

Abstract

This research study appraised the impact of the Banking Sector Reforms on the Real Sector of the Nigerian Economy for the period 1986 to 2009. Data on real sector output, credit to the real sectors, lending rate and interest rate on savings were obtained from the CBN Statistical Bulletin (2009 edition). The data were analysed using Ordinary Least Square (OLS) technique. The result of the analysis revealed that financial sector reforms were effective in addressing the twin problems of providing credit to the real sector, and liberalization of lending rate. However, it proved ineffective in encouraging savings in the economy. Among the recommendations made were the need to provide better incentives on savings, the need for government adequately fund the provision of infrastructures particularly electricity.

TABLE OF CONTENT

Title page-----------i

Certification------------ii

Dedication--------------iii

Acknowledgement---------iv

Abstract-----------------------v

Table of content--------------vi

CHAPTER ONE

1.0 Introduction---------------1

1.1 Background of the Study-----------1

1.2 Statement of the Problem------------6

1.3 Objectives of the Study----------------7

1.4 Significance of the Study---------8

1.5 Research Questions--------------9

1.6 Research Hypotheses-----------10

1.7 De-limitation----------------------10

1.8 Definition of Terms--------------10

CHAPTER TWO

2.0  Literature Review 14

2.1 Conceptual Framework--------14

2.2 Theoretical Framework---------25

2.3 Empirical Framework-----------40

2.4 Overview of the Banking sector---------57

2.4.1 Performance of the banking sector under various

Policy reforms (1986-2009 period)------------61

2.4.2 Challenges facing the banking sector in Nigeria--------68

2.4.3 Notable short-term progress resulting from the 

Reform--------74

2.4.4 Reforms and the real Sector-----------77

2.4.5 Impact of the consolidation policies on 

Stakeholders-------------78

2.5 Historical background and trend in the

 manufacturing sector---------------91

2.6.1 Historical background and trend review in 

agricultural sector-----------------------------     131

2.6.2 Educational Advancement in Agriculture-----------------     134

2.6.3 The Development of the Agricultural Sector -----------------------139

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Preamble -------------------------158

3.2 Model Specification ----------------------158

3.3 Sources of Data ---------------------------160

3.4 Method of Data Analysis --------------------160

3.4.1 Parameters estimates --------------------------161

3.4.2 Model Fitness ---------------------------------161

3.4.3 Test of Hypothesis------------------------------     162

3.4.4 Testing for the violation of the classical 

Assumption ------------------------------------------164

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS 

AND INTERPRETATION

4.1 Data Presentation ----------------------167

4.2 Data Analysis and Interpretation-----------------  168

4.2.1 Unit Root Test --------------------------------168

4.2.2 Estimation of the Model-------------------------   169

4.2.3 Model fitness -------------------------------171

4.2.4 Test of Hypotheses ---------------------------171

4.2.5 Test for Auto correlation--------------------------------     173

4.3 Discussion of Major Findings ---------------------------------173

CHAPTER FIVE: SUMMARY OF FINDINGS, 

CONCLUSION AND RECOMMENDATION

5.1 Summary of Findings -----------------------------174

5.2 Conclusion--------------------------------     176

5.3 Recommendation---------------------------------     177

5.4 Suggestion for further study --------------------------------180

References ---------------------------------------------------181