Thesis Abstract

Abstract
This research project aims to investigate and appraise the impact of government reform policies on financial institutions in Nigeria and their role in the economic development of the country. Nigeria, as a developing economy, has experienced various government-led reforms aimed at improving the financial sector to foster economic growth and development. The study will focus on analyzing the specific policies implemented by the government and their direct and indirect effects on financial institutions operating in Nigeria. The research will employ a mixed-method approach, combining both quantitative and qualitative data collection methods to provide a comprehensive analysis of the subject matter. Quantitative data will be gathered through the examination of financial reports, economic indicators, and statistical data related to the performance of financial institutions pre and post-reform implementation. Qualitative data will be obtained through interviews with key stakeholders in the financial sector, including government officials, regulators, and representatives from financial institutions. The study will also explore the challenges faced by financial institutions in Nigeria in adapting to the government reform policies and assess the effectiveness of these policies in achieving the desired economic development outcomes. By examining the experiences and perceptions of various stakeholders, the research aims to provide insights into the successes and shortcomings of government reforms in the financial sector. Furthermore, the research will assess the overall impact of government reform policies on key areas such as financial inclusion, access to credit, stability of the financial system, and overall economic growth. By evaluating these factors, the study seeks to offer recommendations for policymakers and financial institutions to enhance the effectiveness of future reform initiatives and contribute to sustainable economic development in Nigeria. Ultimately, this research project aspires to contribute to the existing literature on the relationship between government reforms, financial institutions, and economic development in Nigeria. By providing a thorough analysis of the impact of government policies on the financial sector, the study aims to offer valuable insights that can inform future policy decisions and strategies to promote the growth and stability of the Nigerian economy.

Thesis Overview

1.0                                             INTRODUCTION

1.01      BACKGROUND OF THE STUDY

Over the years, Nigeria economy has witnessed a lot of dynamic changes in its economic policies in order to attain a macro-economic stability. Each administration has come up with different economic policies that are believed to be suitable for the economic environment of that particular period. It has been observed with keen interest over the years that some of these economic policies are not realistic in a depressed and battered economy as what is obtained in Nigeria. It could be formulated and analyzed in theoretical framework but not in practice because of the implementation processes or lack of it. More so, some of these policies were not fully implemented. In some cases, the federal government and the authority involved in formulation and implementation of these policies did not adhere to the laid down rules and regulations while implementing these policies. And this inefficiency on the part of the administrators, provide a major reason why these sound economic policies designed to solve our macro economic problems have continuously failed to yield the desired results.

In this research, it is not only the formulation and implementation of these policies that really matters but also the impacts and implications of these policies on financial institutions in Nigeria. Here, the changes and modifications in these policies and how they affect managerial decisions of these financial institutions in order to achieve their aims and objectives and also to achieve a general economic development of the country, would be looked into. Also, the impact of these government economic policies on project financing, production, capacity utilization, sales and revenue of the institutions would be examined. Most financial institutions find it difficult to make a long-run projections into their activities in the future. This is because of the changes in government economic policies. Although, in any serious economy, government must make some changes in its economic policies, but there must be some elements of consistency in these policies which are best determined by the prevailing economic situations in such a country.

All these policies were formulated and implemented in order to increase the employment opportunities, reduce inflation, increase capacity utilization, price stability and general economic well-being of the citizens. But in most cases, the reverse is the case in Nigeria.

Most financial institutions (especially banks) were completely closed down due to harsh economic climate which must have been as a result of lack of adequate capital to remain in business.

1.1         STATEMENT OF PROBLEM

The Nigerian monetary Authority (Central bank) in conjunction with the federal government and its executive arm, has made it difficult for an average investor to understand the fundamental government macro economic policies. This is due to the dynamic changes and the inconsistency observed every year in government economic policies (both monetary and fiscal policies) which in most cases, are included in the years budget.

Governments at various levels (federal, state and local governments) are often being critized for their failure in adhering to long term economic policies with little adjustments to suit the changing economic climate. And this inconsistency in government economic policies has made it difficult if not almost impossible, for private and public sectors alike to make a long run projection into their organizations’ activities or operations in the future with utmost certainty.

1.2         AIMS AND OBJECTIVES OF THE STUDY

The aims and objectives of this study are as follows:

1.           To trace the development of government policies over the years and the survival or sustainability of these policies.

2.           To examine the implementation of these policies or lack of it and what could be done to ensure full implementation of subsequent policies.

3.           To identify the impacts of these government policies on financial institutions in the general economic development of the country.

4.           To identify the financial institutions mostly affected or touched by the government reforms policies particular banks and small and medium scale enterprises.

5.           To suggest ways of making sure that subsequent policies help in the attainment of government goals and objectives in developing the country’s economy.

1.3         SIGNIFICANCE OF THE STUDY

There have been little work or inadequate research carried out on this particular study in recent times. This study will be useful to all staff and students of Kaduna Polytechnic and also to those in other institutions of higher learning across the country, who will eventually go into private business or find themselves working in or heading  financial institutions. It will also be useful to business mangers and those who have particular interest in the study. This study will serve as a guide to further research.

1.4         SCOPE AND LIMITATIONS OF THE STUDY

This study covers majorly, government’s macro-economic policies (monetary and fiscal) and the various measures employed in implementing these policies towards the economic development of the country. It looks into the various macro-economic policies of government and the impacts of these policies on financial institutions.

However, the study was conducted not without some limitations. The limitations of the study include the following:

1.           Some problems were encountered in trying to get relevant materials that could help in carrying out the research. Where available some were in exhaustive or inadequate.

2.           Also, the time to carry out this research was also limited. This was due to the several academic activities like lectures, tests and preparations for examination.

3.           Another constraint is distance. The place of the study was situated far away from the school which meant that so much was needed in terms of transport fares to get to the place of the study.

4.           Also, some problems were encountered in getting data and information from financial institutions especially banks. This was because they maintained a high level of secrecy making it difficult for them to release some of their documents for the purpose of this study.

1.5         DEFINITION OF TERMS

Macro-economic policies:      They are those policies designed to

accelerate the pace of economic recovery of a depressed economy.

Monetary Policies:                  These are  the combination of measures

designed to control the stock of money in pursuit of specified economic objectives. Specifically, they are applied to regulate the availability, and reduction of credit, which is called “discretionary control of money supply and credit which is made at the instance of a central monetary authority e.g. the central bank.

Fiscal Policies:                        These refer to the use of

government expenditures and taxes to control the level of economic activities.

Central Bank:                          This is the government bank. Its main

task is to effectively assist the government in carrying out monetary and fiscal policies.

Financial institutions:             These are establishment that issue

financial obligations (such as demand deposits) in order to acquire funds from the public. They are divided into:

i.             Bank financial institutions, e.g. commercial, development and Merchant banks; and

ii.           Non-bank financial institutions; e.g. insurance companies, savings and loans associations, pension fund, discount houses, etc.