CHALLENGES IN BANKING OPERATIONS IN NIGERIA: INSIGHTS FROM 2009 TO 2018

This study covers the decade, 2009-2018. Its principal intendments are to find out: the different types, number, occurrence frequency and the most prevalent reported Weakness(es) in the operations of Deposit Money Banks (DMBs) in Nigeria, the half-decade (2009-2013 or 2014-2018) that incidences of Weaknesses were better controlled, highlight the implications of the Weaknesses in the operation of the banks and make informed recommendations. For ease of appreciation, understanding and conviction, descriptive method of analysis was utilised in the study. The findings show that, DMBs in Nigeria had thirty (30) different types of reported Weaknesses. They include NonCompliance with banking laws, rules and regulations, Extreme weak corporate governance practices, Loan and Deposit concentration, non-Performing insider credits, Poor risk management practices and Poor internal controls. Four Weaknesses were found to be prevalent but the most prevalent was "Non-compliance with banking laws, rules and regulations". The number and frequency occurrence of Weaknesses in the first half of the decade studied, were more than in the second half thus, suggesting that there was better control in the second than in the first half. While a major implication of the Weaknesses was that they posed serious threats to the soundness, health and survival of the banks, a principal recommendation is that banks should urgently find and deploy appropriate and enduring solutions that will not only eliminate the 30 Weaknesses but also prevent any reoccurrence of Weaknesses in their operations going forward. Another is that an Annual Bank Weakness-Free Award, to be won by any bank or banks found to have operated free of Weaknesses, should be instituted by the CBN and NDIC, in collaboration with the Chartered Institute of Bankers of Nigeria (CIBN).