Central Bank of Nigeria Pushes for Reforms

Photo credit- World News Website

After auditing twenty-four banks last year, The Central Bank of Nigeria (the CBN) now plans to move forward with more bank reforms. According to a February 5th article from Forbes, the CBN has a three-tiered strategy to implement these reforms. These reforms are: reducing the term for bank chiefs to ten years, includes industry and government agencies in reforms to appeal to both foreign and domestic investors and create an asset management company (AMC) which would stimulate banks to lend. The bill which calls for the creation of the AMC has been gaining support from both the financial and industrial sectors and is slated to receive wide support in the legislation as well. The proposal of these reforms is only a step forward for Nigeria, which as seen in the elections in Anambra this weekend, still has much to improve on.

This article from Forbes provides us with some positive news about Nigeria amidst all the often negative news. These bank reforms, especially the decrease in terms for bank chiefs, will most definitely curb the corruption present in many aspects of Nigerian society. The fact that these changes have not created violence or severe opposition from factions so far is an accomplishment on its own. The creation of the AMC, if passed, will not only help Nigeria during this global economic downturn, but will also set the groundwork for better, more efficient banks. These economic changes will not only help the economic development of the country, but will also promote the legitimacy of the government system in the eyes of its citizens. If these reforms are truly implemented (especially the AMC bill), Nigerians' often wavering faith in their economic and political system will surely increase.

Grade this Post.