Nigeria's 2005 bank recapitalisation: an evaluation of effects and social consequences

This study critically evaluated the 2005 recapitalisation of banks in Nigeria in terms of the positive fallouts and the unanticipated consequences. Performance of banks, human resources and other developmental challenges that grew out of the recapitalisation effort were evaluated. Tests of the differences of means were used to determine if there is any significant relationship between the pre and post recapitalisation of banks and Nigerians economic growth. The results obtained confirmed that the 2005 recapitalisation improved the performance of banks and positively impacted the economy. The second hypothesis proves that there is no significant relationship in the pre and post performance of banks after the recapitalisation. Our results tend to affirm that the standard of living of the population was negatively affected because of number of banks staff were thrown into unemployment. The implication of this study is that government should formulate policies that aim at contributing to the growth of economy and improving standard of living.