Abstract

<p>The banking sector holds a pivotal position in driving the economic machinery of any nation. Recognizing the imperative of ensuring efficient financial performance, governments often initiate reform processes to forestall bank distress and enhance stability. In Nigeria, such reforms are integral to the strategic agenda of the government, aimed at repositioning and integrating the Nigerian banking sector into the broader African regional and global financial landscape. This paper examines the evolution and dynamics of the Nigerian banking sector, particularly in light of reforms aimed at bolstering its soundness and resilience. Over the years, the Nigerian banking sector has undergone significant transformations, as noted by Akpan (2007), encompassing shifts in the number of institutions, ownership structures, and the scope of operations. These changes have been chiefly propelled by challenges stemming from financial sector deregulation, globalization of operations, technological advancements, and the enforcement of supervisory and prudential standards aligned with international regulations.</p>