Adeyemo took this position in her new book, “Banking
Regulation in Africa: The Case of Nigeria and Other Developing Economies” which
is set for virtual launch next month.
According to her, where apex banks should ideally discharge
their duties independently, the poor performance of CBN over time required that
it should be watched and guided by external body.
Adeyemo in the book also faulted CBN’s reactive approach to
solving crisis.
She said, “The regulators must pay closer attention to
having a proactive approach to the act of regulation, rather than adopting a
reactive measure for the instances of a banking crisis or failure”.
She also stressed the need for Nigerian regulators to
cultivate a clear commitment to the ongoing improvement of the regulatory
framework to allow for a sustainable and viable economy.
The author in the book detailed the historical analysis of
Nigeria’s banking regulation trajectory, which included the creation of Nigeria’s
first banking Act, Bank Ordinance in 1952, induced by the Paton Report and the
deregulation of the Nigerian banking sector under the then President Babangida
in 1986.
Others are the banking consolidation in 2004 which saw a
substantial development to the Nigerian banking system; and the introduction of
the Banks and Other Financial Institution Act 2020.
She also provided a holistic examination of banking
regulation in Africa which she specifically explored the banking regulatory
architectures of South Africa and Kenya, arguing that both have evolved over
time.
“Similar to Nigeria, South Africa has an apex bank (South
African Reserve Bank), and two other regulators: the Prudential Authority and
the Financial Sector Authority. In the case of Kenya, this country has a
fragmented framework as it comprises of several regulators, each having its
distinct responsibility.”
She concludes that all the all three African regulatory
models boast distinctive qualities which may be broadly categorized as
important and necessary features of an effective regulatory model.
She however stressed the need for Nigeria to adopt a
proactive regulation to boost efficiency.
She also posited that a specialist court be created to deal
specifically with Nigerian banking law mattes.
“This proposed court would function similarly to the court established
by the Failed Banks (Recovery of Debts) and Financial Malpractices Decree
1994”, she said.
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