The findings of this study shows that the majorthreats to profitability, growth and sustainability of the Nigerian banking industrywithin the last 5 years are: economic downturn which signifies the economicsituation of the country; and political instability; unfavorable bankingregulations such as removal of charge ontransactions (COT) on current accounts, treasure single accounts (TSA), reducedbank charges; unstable salary thus reducing the scope of loans; huge runningcost due to unstable power supply; bad loans due to huge investments in the oiland gas sector; poor power supply; low productivity; among others.
Also, theresult of this study shows that most customers are not honest especially whengiving a loan as some will take the loan and change their salary to anotherbank so that they will not pay. Some customers on loan facility may abscondfrom duty and even relocate, thus it is always impossible to get them to payback such loan. Also, some customers may die and their families will refuse tosubmit their certificate of death to enable the bank claim back their moneyfrom insurance. Some customers may change their job after obtaining such loanand open another salary account thus abandoning their loan repayment. Also,inadequate governance and regulatory support; economic recession, high lendingrates coupled with bad loans, poor technology fraud, high overhead cost such asexpense, indirect or fixed expense of operating business; the lack ofinnovation to meet up with customers satisfaction; non-performing loan, highoverhead cost.
Others include incompetent network providers, poor corporategovernance, lack of improved customers service, lack of technical know-how,unstable policies by apex bank, foreign exchange scarcity, among others. Theresult shows, in the last five years, threats to profitability, growth andsustainability of the Nigerian banking industry are many which could haveimpact on the Nigeria banking sector and thus the economy. Thefindings of this study supported the works of Ogunleye(2002); Havrylchyk et al.,(2006) cited in Frederick (2014); Iannotta et al., (2007); Pasiouras andKosmidou, (2007); Athanasoglou et.al, (2008); Bikker and Bos, (2008); Alexiouand Sofoklis (2009) and Garcia-Herrero et al., (2009); Oghojafor etal. (2010); Anyanwu (2010)cited by Kalu and Mgbemena (2015); Krakahand Ameyaw (2010); Ahmed et al.
(2010); Tabak et al. (2011); Ebiringa (2011); Ebiringa(2011); Dietrich andWanzenried (2011); Vazquez et al. (2012); Oke and Adeusi (2012); Ayanda et al. (2013); Rajput et al.
(2013); Abaeneweet al.(2013); Guillén et al. (2014); Ojong et al. (2014); Jegede (2014); Akhisaret al. (2015); Schubert (2015); Kalu and Mgbemena (2015); Mahmud et al. (2016); Okoroanyanwuand Udunze (2016); Abusidiqu Media Ltd (2017); Lawal (2017); Alonso (2017).
Also, the finding of this study that innovations in the bankingsystem do not meet up with customers satisfaction supported the work of Omiunu (2012) that development plans whichinclude innovations to meet customers satisfaction from other countries may notwork in the environment of developing countries thus, the need to remodel suchstrategy to fit into the Nigeria banking environment. Thefindings of this study also reveal that the major strategies deployed to cushionthe threats to profitability, growth and sustainability of the Nigerian bankingindustry within the last 5 years are staff downsizing of staff; reversal ofexpansion and closure; the increases in fees and commissions; and digitizationof processes and services for cost efficiency due to branches being closed andstaff also being sacked; creating alternating source of income such asnon-interest income through alert charges, ATN fees, etc.; cost containment,drastic operational cost reduction measures; certain emoluments removed e.g.,distribution of toiletries to all staff on monthly basis was stopped, redundantstaff were relieved, ceiling in spending was enforced; policy reform byindustry regulation- done by CBN; cost management by various banks; changing ofgovernment; limitation/reduction of loan disbursement; introduction of BVN tocustomers; knowing customers before loan is giving; loan recoveries;rebranding, upgrade of technology; improved security systems; introduction ofalternative channels and reduction of overhead costs; merger and acquisition ofbanks; increase of banks capital base to N25 billion; ensuring full complianceof lending 33% of shareholders fund;, etc. are the major strategies adopted tocushion the threats to theprofitability, growth and sustainability of the Nigerian banking industrywithin the last 5 years.Othersinclude improved customers services, and relationship management; embarking onmass marketing; interest on saving accounts and bank technology; introductionof customers friendly products; network improvement; product innovation,good/improved customer service; public enlightenment on the available bankservices; staff availability; formation of NAFEX to enable importers getsubsidized rate from CBN; intervention of CBN in the FOREX market; staffrationalization; use of cheaper contract workforce; push towards use ofelectronic channels; etc. This implies that the Nigeria banking sector hasdeployed a wide array of strategies to cushion the threats to theprofitability, growth and sustainability of the Nigerian banking industrywithin the last 5 years.
The findings of this study supported the works of Ogunleye(2002); Tavis (2004); Ebong(2006); Abdullahi (2007); Okonjo-Iweala and Osafo- Kwaako (2007); Krakah andAmeyaw (2010);Ofanson et al. (2010); Oghojafor et al. (2010); Olokoyo (2011); Amaeshi andOgbechie (2013); Yakubu andAffoi (2014); Ojong et al. (2014); DeloitteTouche Tohmatsu Limited (2016); Victor-Laniyan(2016)