Banking Regulation in Africa: The Case of Nigeria and Other Emerging Economies

This book explores the development of banking regulation in Nigeria, comparing it to emerging economies in Africa and the UK and US. It examines the theoretical underpinnings of regulation and supervision and discusses the historical experiences of bank failures in Nigeria, including the 2008 banking crisis. The book argues that the Nigerian regulator has historically adopted a reactionary strategy instead of a proactive and pragmatic approach and proposes lessons to be learned and proposals to rethink the act of banking regulation.

Format: Paperback / softback
Length: 190 pages
Publication date: 29 January 2024
Publisher: Taylor & Francis Ltd

The development of banking regulation in Nigeria has received limited attention in the academic literature, particularly regarding the powers of the Central Bank of Nigeria, which serves as the primary regulator for the country's core banking sector. This book aims to contribute to the existing body of knowledge in this area by providing a comprehensive exploration of the Nigerian regulatory architecture. Additionally, the book conducts a comparative analysis with two emerging economies in Africa: South Africa and Kenya. Furthermore, it considers the UK and the US as comparator jurisdictions in light of their regulatory responses to the global financial crisis of 2008.

The book seeks to contribute to the ongoing discourse in this field by examining the theoretical underpinnings of regulation and supervision to determine whether there is a consensus on what constitutes effective regulation in these jurisdictions. Given Nigeria's central jurisdictional focus, a historical account of banking exchanges from the pre-colonial era to more recent times is provided. This account aims to shed light on how political, local, and economic factors, in conjunction with regulatory theories, have shaped and influenced regulatory development in Nigeria.

The book also engages in an examination of Nigeria's historical experiences with bank failures, including the banking crisis it experienced in 2008. By analyzing these failures, the book seeks to identify lessons that can be learned and propose recommendations to enhance the effectiveness of Nigeria's regulatory regime.

One of the key findings of the book is that the Nigerian regulator has historically adopted a reactionary strategy rather than a proactive and pragmatic approach to regulation. This analysis suggests that there are valuable lessons to be drawn from Nigeria's regulatory history and that proactive measures can be taken to improve the country regulatory framework.

To address these challenges, the book proposes several recommendations. Firstly, it suggests that the Nigerian regulator should adopt a more proactive and risk-based approach to regulation. This approach would involve identifying potential risks and vulnerabilities in the banking sector and taking steps.

Secondly, the book recommends that the Nigerian regulator should strengthen its monitoring and supervision capabilities. This includes enhancing the capacity of the Central Bank of Nigeria to conduct regular inspections of banks and other financial institutions and to enforce compliance with regulatory requirements.

Thirdly, the book suggests that the Nigerian regulator should enhance its coordination and cooperation with other regulators in the region and internationally. This includes working closely with other African regulators to share best practices and develop common standards for banking regulation.

Finally, the book recommends that the Nigerian government should prioritize the development of a robust legal and regulatory framework for the banking sector. This includes enacting and enforcing laws and regulations that promote transparency, accountability, and consumer protection in the banking sector.

In conclusion, this book provides a valuable contribution to the literature on banking regulation. It offers a comprehensive exploration of the Nigerian regulatory architecture, conducts a comparative analysis with other emerging economies in Africa, and considers the regulatory responses of the UK and the US to the global financial crisis of 2008. By examining the theoretical underpinnings of regulation and supervision, the book seeks to determine whether there is a consensus on what constitutes effective regulation in these jurisdictions. The findings of the book suggest that there are valuable lessons to be learned from Nigeria's regulatory history and that proactive measures can be taken to improve the effectiveness of Nigeria's regulatory framework. The recommendations provided in the book are aimed at addressing the challenges faced by the Nigerian banking sector and promoting a sound and stable financial system.

Weight: 316g
Dimension: 233 x 154 x 13 (mm)
ISBN-13: 9781032171975