Challenges of Foreign Banks in Nigeria

Firstly, since independence in 1960, the Nigerian political system has been volatile, thither dumbfound been 7 military coups, and this has made the investment modality unattractive because the nation appears insecure for the alien investor. Secondly, they argon to a fault many arbitrary and sudden changes in brass policies and regulations which have led to a great deal of uncertainty. Foreign banks are scared from funding any project with a capacious gestation period. With this fear, most of these banks are now turning to major(ip) cash centres, that is, they are basically mingled in deposits and disbursal of funds without getting involved in long enclosure project financing. Thirdly corruption is endemic and has spread to any facet of the economy. It is widely prevalent in many government and public agencies and foreign banks believe that business operations may come to a halt if they is no greasing of palms A nonher major finding is that of weak legal system, the legal system has in any fictitious character has had its shortfall arising from the executive meddling in their affairs. Those who contravened the laws are not easily brought to book, those involved in trade malpractice or wound of contractual agreements are not properly prosecuted to serve as a deterrent to others.

Based on these, most foreign banks tend to be worried about validity and enforcement of contractual agreements. Foreign banks require healthy private sector that locoweed earn reasonable rate of return in a stable economic environment, that is, when the private sector is healthy, this is a ripe indicator for the foreign investor that the economy is, stable, thriving and can be a good investment opportunity. Government is too involved in the regulatory approvals .None is even left in the hand of the private sector through organised bodies as it is the case in the UK through the Financial Service Authority (FSA). The FSA regulates twain prudential aspect and conducts of business. It is funded by industry levy and governs by a... If you want to get a full essay, order it on our website: Orderessay

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