Banking sector reform and the challenge of unemployment in Nigeria
Keywords:employment rates, Reform in Nigeria banking sector, globalization
One of the paramount targets of any government all over the world is attaining high growth and employment rates. However, these constitute major challenges in Nigeria as economic growth has either remained stunted or stagnant and unemployment rate very high. The financial sector is expected to push up the real sector thereby lowering unemployment rate. Thisresearch work titled, “Banking sector reform and the challenges of unemployment in Nigeria”, seeks to recommend measures towards positioning the banking sector for employment creation. In carrying out this research work, data related to financial and macroeconomic activities were gathered, while OLS method of statistical analysis was also employed to analyze the data collected. The results showed that ROI and M2 are statistically significant on unemployment, but personal consumption expenditure and gross domestic product are not statistically significant. However, rate of interest, money supply and exchange rate were significant to influencing the rate of unemployment in Nigeria. The work therefore suggests that rate of interest; money supply and exchange rate should not be left absolutely to the dictate of the market forces as a means of reducing unemployment. It is therefore recommended that Government should initiate policies to foster the monetization and growth of financial transactions through the banks for stronger real sector of the economy to enable it solve the issue of unemployment among others.