Essay about Nigerian Banking And Financial Services

Essay about Nigerian Banking And Financial Services

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The Nigerian banking and financial services competitive environment has changed radically. From the heydays of the financial services and banking boom of the 1990s, when the country was dotted with over 200 financial institutions – commercial banks, merchant banks, community banks, mortgage banks, finance houses - to the new dispensation in which the country progressed fully into the era of universal banking with 24 banks operating in the country (Sanusi, 2012). The faltering Nigerian economy and the banking industry experienced a systemic crisis in 2009, triggered by the global economic crunch, which was followed by the collapse of the Nigerian stock market. After the stock market collapse of 2009, during which 70% of value was eroded, many Nigerian banks had to be bailed out of financial crisis by the Central Bank of Nigeria. In order to stabilize the system and return confidence to the market and investors, the Central Bank of Nigeria (CBN) injected 620 billion Naira (N) of liquidity into the banking sector and replaced the leadership at eight (8) Nigerian banks, thereby stabilising the industry (Sanusi, 2010).

The banking, financial services and business environment in Nigeria has intensified in the last few years owing to competition and the jostling for consumer attention. Now virtually all of the banks are exploring new ways to improve processes, innovate and most importantly, attract and retain the best crop of employees. The battle to maintain reputational assets and integrity is becoming fierce. And this is perhaps more so in the way banks are now trying to re-brand and positively shape public perception in order to gain competitive advantage (Thomas, 2009). Within this intensely competitive environment, the opportuni...

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...strategic planning and be involved in not only operational efficiency but also functional effectiveness. In a bank, HR’s goal is to generate adequate and appropriate leverage to support business decision-making and contribute to strategic planning. With this goal accomplished, business partners are then able to focus their efforts to strengthening people strategies that delivers competitive advantage (Ulrich, 1997; Ulrich, 1998; Ulrich and Brockbank, 2009). The re-configuration of HR has further validated the assertion of Ulrich, that HR has become a necessity for every business because the competitive forces managers face today, and will continue to face in the future will always demand organisational excellence. HR transformation is not just a catch phrase, but also a necessary function that helps organisations achieve organisational excellence (Ulrich, 1998).

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