Ethics in Nigerian banking

Discusses the unethical practices of Nigerian banks from a historical perspective. Traces concern over unethical behaviour in banking back to the emergence of indigenous banks in colonial Nigeria, with the 1952 Nigerian Banking Ordinance as the foundation of later regulations aiming to improve banking standards. Moves on to the Structural Adjustment Programme (SAP) which was set up in 1986 by the military government of President Babangida; this was a series of measures which the Government was compelled to take to achieve Balance of Payments stability, and deregulation of the banking system was an integral part of it. Shows how SAP led to a great increase in the number of banks and facilitated arbitrage possibilities which have allowed perhaps the most notorious unethical practice of Nigerian banks, round tripping. Details the types of unethical practice which the banks use and concludes that Nigerian banking remains full of such practices, which arguably reflect the general degree of corruption in the country.