Investment Banking Activities In Nigeria: A Critical Discourse Analysis of Problems and Prospects

Abstract

The investment bank's performance was researched and critically analysed, and how such performance might contribute to economic growth notably in Nigeria. Using the Nigerian financial industry, this study assessed the issues of investment banks in a growing nation. This study spanned the years 1960 through 2023. The period was marked by a credit boom, a financial recession, a rebound, and strong economic expansion. In this study piece, a systematic literature review (SLR) was performed, and the research revealed crucial challenges of Investment Banks in an emerging economy. Among the difficulties cited are: regulatory compliance, technology management, cyber risk, cost pressure as inferior ROE hits, the development of Fintech businesses, ring-fencing, and so on. The research identified the following important roles of investment banks: initial public offering activities, mergers and acquisitions, risk management, research, derivatives, merchant banking, and investment management. According to the research, in order for the performance of investment banks in Nigeria to significantly improve, the following should be pursued aggressively: a cost-cutting strategy, cultural transformation, a customer-centric approach to business, technological development, financial depth development, and the development of a sustainable investment bank framework. This study believes that if the recommendations are adopted, the profit of investment banks would improve, allowing them to execute their core functions and contribute to the growth of the economy, particularly in a rising economy like Nigeria.