CHALLENGES AND OPPORTUNITIES OF INTEGRATING NIGERIA’S BANKING SECTOR SERVICES INTO GLOBALIZED ECONOMY

Abstract

The extreme protagonists of globalization considers it as a high speed elevator to universal peace and prosperity while its critique charge it with impoverishing the world’s poor, enriching the rich and devastating the environment (World Bank, 2000). Nevertheless, realizing the opportunities of globalization is not automatic for any economy; as such opportunities depend on a number of fundamental requirements. Following from the foregoing statements, this paper investigates the challenges and benefits of integrating Nigerian banking services sector into the globalized economy. In doing so, the paper questions the extent to which Nigeria became integrated into the globalised economic environment. This investigation provided further direction to understand the position of the Nigeria’s banking financial services in relation to their integration into the globalised economy.

The paper draws on secondary data to analyze the depth of financial integration of Nigerian banking sectors into the globalised world. The paper discovers that in the short-term period, it is unlikely that Nigerian Banking Services Sector amidst current reforms cannot satisfy most of the globalization requirements particularly in the areas of provision of favourable macroeconomic environment, sound state of infrastructure, effective corporate governance, transparency and accountability; as well as adequate and effective regulatory and supervisory framework of banking services. The paper also finds that the problem with financial globalization is not that it is harmful itself but that increase risk comes with its opportunities.