It has been observed that all over that world each country has its peculiar rules and regulations guiding the financial transaction within the economic system, even if it is public or private, the most important thing is that they are harmoniously functioning as a system to achieve the needed economic and monetary effect. (UGWUANYI 2002:3)

Needless to say that the financial system of any country is a great economic indicator and should be handed with every carefulness. The banking industry or sector being a sub-sector in a country’s financial system has had so many problem. As a matter of fact, the history of failure in the banking system dates back to the 1920’s, when the world economic system was in a great depression it was however peculiar to Nigeria during the 1950’s when indigenous Banks had to phase out or be repackaged like the Agbomgbe (Now WEMA BANK). This was as a result of other things. During the 1990’s, the Nigerian financial system faced a terrible period in her history because of some reasons that shall be discussed in the cause of my work. The shadow of failure is still hanging on the Nigerian system and the banking system till date. 

Much as this problem resulted to some unreality developments especially to some banks. It was the antidote or the marketing strategy they needed to draw  the attention of various bank customers to their banks with the view to making them believe that they cannot fail.

This study shall be looking at the Nigerian financial system and also discussing of the remote causes so as to be able to recommend solutions to the problem at the end of the study.