Abstract:
The study was a many faceted one. Its main objective was to verify the following:
1) the service portfolios of commercial and merchant banks in Nigeria;
2) to ascertain, if there was any role conflicts between commercial and merchant banks in
Nigeria;
3) to ascertain why some merchant banks clamour for conversion to commercial bank status;
4) to ascertain whether universal banking was suitable for the Nigerian economy.
The study data were elicited via questionnaire and oral interviews involving bankers and
bank customers often banks, as respondents.
The major findings of the inquiry include an identification of the various services actually
rendered by commercial and merchant banks in Nigeria. The study also revealed that some
merchant banks accept deposits withdrawable by cheques, which runs counter to the provisions
ofB OFI decree No. 25 ofl991, S. 32(l).
A null hypothesis (Ho) tested in the study revealed that there was no statistically
significant difference between the service portfolios of commercial and merchant banks in Nigeria.
The clamour for conversion to commercial bank status, as championed by some merchant
banks was identified to be caused by several factors including the disadvantaged statutory
environment under which merchant banks operate as attested to by the outcome of the analysis
of data and test of null hypothesis two of this study. Several suggestions were recommended for
the redressing of the imbalance.
Finally, an extensive analysis of the data collated on universal banking as an option for the
Nigerian banking system, revealed a preponderance of disadvantages over advantages for the
adoption of universal banking for Nigeria's present economy. The government was accordingly
advised to disregard the quest for the moment and continue with our present banking system
which is more conducive to our developing economy.
