Regulations and Reforms in Nigerian Banks to enable social banking are
desirable. The problem has been banks’ stunted growth from arm-chair
banking to social banking. The recent recapitalization and merging of banks
for bigger business, risk and profit is a step in the right direction. But the
problem remains if the erstwhile 89 Nigerian banks equal numbers 2 and 3
South African banks or the current 24 recapitalized Nigerian banks equal
number 2 South African banks. Nor is this all. More importantly, social
banking which is mainly the development of rural or poor areas has not been
met. Therefore, there is the need to test the hypothesis that there is no
relationship between regulation or reforms and transformation of the rural
areas. Regression method is utilized. The major findings include low ACGSF
loans/Advances and low agricultural GDP. Therefore, it is recommended
that the government should direct its budget to capture more banks’
loans/Advances for the real or rural sector proxied by agricultural
development.