GLOBALIZATION AND THE NIGERIAN ECONOMY-THE FINANCIAL SERVICES SECTOR PERSPECTIVE

Abstract

The phenomenon of globalization is a multi-dimensional and multi-faceted process that encompasses political, economic, social and cultural dimensions which have been variously explained in different terms and contexts. This paper attempts to examine the impact of globalization on the Nigerian economy. The paper focuses on the financial sector with particular reference to the Banking sub-sector. The two strands of globalization are x-rayed while the powerful forces that propel globalization are identified. Although the empirical studies point to the fact that Nigeria's level of integration with the global capital market is still low, it is evident from this study that globalization has a profound impact on recapitalization of Banks in Nigeria, which precipitated a robust Banking regulation/supervision, remodeling of the Banking system, a rapid expansion of the telecommunications and information and communication technology (ICT). The paper concludes that the revolution in telecommunication and ICT has a profound impact on the Nigerian Banking sub-sector. It is recommended that economic policy authorities put in place appropriate macroeconomic policies that will deepen and hasten financial integration and stimulate freer flow offunds into the economy.