The introduction of Structural Adjustment Programme (SAP) with its instruments of implementation have brought about radical transformation of the Nigerian economy. These tools of SAP, aimed at correcting the imbalance inheren; in the economic system have had a profound influence on the manner and ability with which the banks carryout their activities.
The guided deregulation policy so far has had the effect of increasing tremendously the level and scope of activities of the Nigerian banks such that their asset base, earnings and profitability have shown remarkable increase since inception of SAP in 1986.
A number of factors have in cumulative and progressive fashion produced the trend toward-deregulation in the financial service industry and n the banking sector in particular.
It was discovered that many of the regulations put in place to curb excessive competition have rather produced costly inefficiencies in the provision of financial services and reduced consumer choice.
The financial system have been going through the greatest expansion since the mideighties as evidence by the increase in the number of banks during the era of deregulation to more than twice their number prior of deregulation.
There has in addition, been a significant improvement in the efficiency of banking services as a result of increase in the use of computer technology, product innovations and competiveness of the banking industry.
The era of deregulation has therefore ushered in more opportunities and new roles
for the banks to play through which they are expected eventually to contribute greatly toward the growth and restructuring of the Nigerian economy.
