Assessing the Impact of Macroeconomic Policies on the Economy

Topics: Bank, Central Bank of Nigeria, Central bank Pages: 23 (5865 words) Published: August 24, 2013
European Scientific Journal

May edition vol. 8, No.9

ISSN: 1857 – 7881 (Print)

e - ISSN 1857- 7431

LABOR AND BANKING SECTOR REFORMS IN NIGERIA

Idowu Oluwatoyin Frederick
Department of industrial relations and public administration Lagos state university, Ojo, Nigeria..

Abstract The regime of banking sector reforms leading to recapitalization and consolidation in Nigeria and the consequent merger and or acquisition of existing banks into twenty five (25) by 2005, and later eighteen (18) by 2012 brought along their trails attendant labor problems in terms of educational diversity, job security and productivity, decent employment questions. The study review post consolidation performance of the banking sector to assess the extent to which the sector meets consolidation objective using post development approach. It was found that while the alliance and marriage of seemingly compatible partners are settling down, the society is at the receiving end of the severance of labor and the enlargement of the pool of reserved army of the unemployed. The fall-out therefore is double-edge for the economy and the society.

Keywords: Labor reforms, recapitalization, consolidation and post development

1.0

Introduction Private and public businesses are continually being challenged by performance.

Performance success is very minimal measured on the indices of what Alos (2006) catalogued as: what the customer needs and values, response to environmental changes and impact on the quality of the people. The issue of performance effectiveness or reengineering organisation has preoccupied the minds of organization practitioners, researchers and watchers since 1990s. Therefore, all over the world, many economies had carried out various reforms to ensure effectiveness of the 166

European Scientific Journal

May edition vol. 8, No.9

ISSN: 1857 – 7881 (Print)

e - ISSN 1857- 7431

real sectors. The performance revolution started in the private sector. Its effects spread to the public sector influenced by ideas from public management school. Nigeria as a nation is not left out in this reform revolution to ensure quality of life for its citizenry. Legal and institutional frameworks were put in place to re-engineer the economy and the performance values of the real sectors. The blue print of the current reforms agenda is set out in the National Economic Empowerment and Development Strategy (NEEDS) document. Some of the reforms include (1)power sector reform; (2) ports reforms meant to ensure timely clearing of goods within forty eight hours (3) deregulation of oil and gas sub-sector to forestall perennial fuel scarcity; (4) deregulation in the telecommunication industry to reduce government participation, create employment and commerce (5) the banking sub-sector /recapitalization/consolidation to make it play its rightful role as the dominant sector of the economy in driving growth and development in other sector. The current banking sector reforms captioned as recapitalization policy was issued out on Tuesday July 6, 2004. Capitalization is setting the capital base upon which a player can set up and be licensed to operate banking functions. It is setting a capital base which was given as twenty five billion naira (N25b) as at 2005. The former capital base was two billion Naira (N2b), which many banks could not even afford. In Nigeria, empirical studies had been carried out on the relationship between banking reforms and economic growth (Balogun, 2007, Fadare, 2010); consolidation and macro economic performance (see Somoye, 2008); consolidation and adoption of e-banking (Ayo, Adewoye and Oni 2010; Chimeke, Evwiekpaefe, and Chete, 2006). The implication of banking reforms on labor has scarcely been researched. The main objective of this study is to review the banking sector reforms 2004 – 2011 and the extent to which the objectives set are met and also, the implication of the reforms on labor as regards employment:...

References: e - ISSN 1857- 7431
NEW AGE June 16, 2005, Vol
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