THE IMPACT OF FINANCIAL DEREGULATION IN THE BANKING SECTOR OF NIGERIA

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Description

Nigeria economy had a lot of structural distortion in 1980’s, the economic policies prior to 1985, made the Nation’s economy vulnerable to external stocks. Consequently, the 1986 budget sought to de-emphasized controls and adopted policy measures arrived at expanding the economy resource. To attain this goal, the 1986 budget at a tone, introduced the Structural Adjustment Program (SAP) which was launched in July 1986, in Nigeria.

Structural Adjustment Program (SAP) is a program imposed on developing countries, especially on economic policy regions, by the Bretton Woods Institutions (i.e. the World Bank and International Monetary Fund). This is to improve a country’s foreign investment by removing trade and investment regulations (i.e. deregulations). The deregulation policy is also an encouragement to efficient operation of the money market.