Nigeria: Financial Sector Stability Assessment
International Monetary Fund
Download Document| Date Published | 2013 |
| Version | |
| Primary Author | International Monetary Fund |
| Other Authors | |
| Theme | |
| Country | Nigeria |
Abstract
The Nigerian economy has experienced domestic and external shocks in recent years, which resulted in the 2009 banking crisis. Following the crisis, the authorities took a comprehensive set of remedial measures. As a result, Nigeria avoided economic collapse and economic growth resumed. Despite a positive macroeconomic outlook, substantial risks remain. The financial system continues to suffer from weak governance, including some non-transparent ownership structures, deficiencies in financial reporting, and endemic perceptions of corruption. Despite significant progress in recent years, the regulatory and supervisory framework has gaps and weaknesses.The development and regulation of non-bank financial institutions require further reforms. With the financial system now stabilized, the process of unwinding crisis measures and strengthening the crisis prevention and resolution framework should continue. Access to finance is an important constraint to Nigeria’s development. In sum, the Nigerian economy has emerged from the banking crisis, and has the potential to enjoy an extended period of strong economic growth.