Global Financial Crisis And The Nigerian State An Appraisal Of Banking Reforms In Nigeria

Abstract

The world at large is facing one of the most difficult times in history. Likewise the world economy is also facing the most severe financial crisis ever witnessed since the Great Depression of the 1930s. The risk of global financial crisis has heightened and
threatened significantly local banks in Nigeria due to the collapse of stock exchange markets and over-valuation of assets. Some perceived the financial crisis as a crisis triggered by a liquidity shortfall in the United States banking system caused by
overvaluation of assets. Yet, some others see it as inherent ideological disaster associated with capitalist production and its market-driven economic reforms. In Nigeria, the causes are premised in the volatility posed by the economy which poses significant challenges to macro-economic stability, lack of corporate governance at banks, critical gaps in regulatory framework among others. This study examines the corrective measures taken by the state in repositioning of the banks as a mechanism for sustaining the Nigerian economy as well as inflow in foreign investments in Nigeria. It explains the legal issues
of the reform, especially tenure limit of CEOs and non-executive directors as well as how this will ensure economic stability in Nigerian economy.