Evaluation of Central Bank of Nigeria’s Marketing Communications Campaigns on Banking Sector Reforms, Currency Restructuring and Abuse of the Naira.
ABSTRACT
The study carried out an empirical evaluation of the Marketing Communications Campaigns (MCC) used by the Central Bank of Nigeria (CBN) to execute the Nigerian banking sector reforms in the period 2004 – 2007. The study became necessary due to the perennial distress in the Nigerian banking sector which was traced to poor capital base/seeming ineffectiveness of the Apex Bank’s MCCs used to inform, remind and persuade the banks and other stakeholders in the industry and the general public about the policies, services and directives to be implemented.
The CBN has been using MCCs as veritable tools for banking sector control measures since its inception in 1959 without any evidence of empirically evaluated and documented campaign’s outcomes to guide future decision making of the CBN and for use by similar bodies and researchers. These therefore inform the essence of this study which sought to determine the amount of influence the CBN campaigns for banking sector reforms, currency restructuring, the use of coins and stop the abuse of the Naira had on the general public and possibly design a credible and detailed MCCs model for CBN, researchers and other interest groups.
The method adopted was survey design which used structured questionnaire to generate data for hypothesis testing. The results show that the CBN’s campaigns had significant influence on the general public for the successful establishment of 1,048 microfinance banks, introduction of N50, N20, N10, N5 Naira banknotes and N2, N1 and 50kobo coins on February 28, 2007.
INTRODUCTION
The Nigerian banking sector is expected to be the engine and the fulcrum on which other sectors revolve. It is the business of the banking sector to provide the necessary financial support to the entire economy. The sector is to provide funds for the development of the agricultural sector, capital for the real sector (manufacturing), service industry, loans and advances to governments and the investing public.
Contrary to these expectations, the Nigerian banking sector has witnessed persistent turbulence since its evolution in 1892 showing that the CBN has not been able to appreciate/identify fully the source(s) of the problems of the commercial banks and that of the other stakeholders in the industry. Hence, there exists an expectation/communication gap between the Central Bank of Nigeria (CBN) on one hand and the deposit money banks, other stakeholders/the public on the other.
This expectation gap was traced to the poor capital base of the commercial banks and other such factors. The gap was also traced to the seeming ineffective communications between the Central Bank of Nigeria and the deposit money banks (DMBs) on the one hand and her other stakeholders/publics on the other. Specifically, it was traced to the seeming ineffectiveness of the apex Bank’s marketing communications campaigns which form the focus of this study.
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StudentsandScholarship Team.