Overview

This document is a goodwill address delivered by Governor J.O. Sanusi of the Central Bank of Nigeria at a National Seminar on Banking and Allied Matters for Judges, held between 2002 and 2009. The address highlights the evolution of Nigeria's banking industry since the late 1980s, following liberal licensing policies that tripled the number of banks from 41 to 119 by 1991. However, distress in the 1990s reduced this to 90 by 2001. The adoption of universal banking in 2001 allowed banks to operate across money and capital markets and insurance. The growth brought challenges such as operational overstretch, increased fraud, and insider abuse, leading to non-performing loans. The CBN responded with regulatory measures, including risk-weighted capital adequacy ratios from the Basel Committee, to strengthen banks. The address emphasizes the critical role of the judiciary in supporting financial sector reforms, resolving corporate governance issues, and combating financial crimes. It underscores the importance of a well-functioning legal system for a sound banking industry.

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