AN ANALYSIS OF THE LEGAL AND INSTITUTIONAL FRAMEWORK FOR THE CONTROL OF BANKING OPERATIONS IN NIGERIA

Abstract

Banks are necessary structures that must be in place, for smooth economic transactions to occur. In Nigeria, there have been in existence numerous banks that have contributed to the development of the banking sector. Several of these banks have been phased out due to policies aimed at ensuring that the sector is strengthened to combat the growing economic needs. The presence of a regulator which is the Central Bank of Nigeria has no doubt helped in ensuring that these banks are guided in the right direction. However, despite the available measures, policies and laws that have been made, certain flaws have continued to rear their ugly heads. This paper therefore sets out to investigate by way of analysis the current legal framework of banks and its regulatory institutions in Nigeria. Notably, the paper attempts an highlight of the different kinds of banks in Nigeria while briefly navigating the historical background. An overview of the various bank licences was also considered while an attempt was made to analyse the activities of the various institutions. The above analysis reveals amongst others that there is the need to enhance the legal framework of the banking sector as there are impediments hindering its growth.