An Evaluation of Stakeholders’ Perception on Banking Regulations and Bank Distress in Nigeria: From the Colonial Era to 2024

Abstract

This study examines the evolution and impact of banking regulations in Nigeria on bank distress from the colonial era to 2024. Using a quantitative survey, primary data were collected via structured questionnaires from banking professionals, regulators, and financial analysts in Kogi State. The research analyzes key regulatory interventions, the changing causes of bank distress, and the effectiveness of current frameworks. Descriptive statistics, including frequencies, percentages, mean, and standard deviation, were used to summarize the demographic characteristics of the respondents and the key features of the collected data. Findings reveal that while regulations such as banking consolidation and recapitalization have helped mitigate distress, persistent challenges, including poor governance, economic shocks, and inconsistent enforcement, remain significant. The study also highlights that existing regulatory frameworks need urgent updates to address emerging risks like digital banking and cybersecurity threats. To strengthen the sector’s stability, it recommends enhancing enforcement mechanisms, improving corporate governance, updating policies to cover technological risks, reinforcing capital and liquidity requirements, and fostering greater collaboration between regulators and banks. These measures aim to create a more resilient, compliant, and stable banking system capable of withstanding future financial challenges in Nigeria.