Prudence is designed to make financial systems safer. Higher capital buffers, stricter underwriting, stronger compliance, and clearer rules all serve one aim: reduce the chance that shocks become crises. Prudence has a shadow cost: when imposed abruptly, uniformly, or without regard to transmission, it can shrink the economy it intends to protect. Nigeria’s financial reset…
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Nigeria’s financial system is changing. It faces a major regulatory reset across banking, capital markets, fintech, FX intermediation, and cash usage. The trend is clear: higher capital, tighter compliance, clearer rules, and more market-based pricing, especially in foreign exchange. Officially, the goal is stability. In reality, it is during the adjustment phase that risk is…
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For decades, Nigeria’s monetary policy operated in a hybrid space—part rules, part discretion—constrained by fiscal dominance, exchange-rate pressures, and deep structural inflation drivers. Monetary decisions were often shaped as much by administrative controls, directed credit, and quasi-fiscal objectives as by price stability. That framework is now changing. In recent years, the Central Bank of Nigeria…
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