Malam Sanusi Lamido, the CBN Governor, has urged ECOWAS member-states to reform the banking sector in their countries.
Sanusi said this at a Regional Conference jointly organised by the West African Institute for Financial Growth and Management (WAIFEM) and ECOWAS on Monday in Abuja.
The CBN Governor said that the banking sector reform in Nigeria yielded sustained growth in its economy.
He said Nigeria’s experience in the sector reform could provide useful lessons and insights for other African and EU countries currently in financial crisis.
“The Gross Domestic Product (GDP) growth rate has moved from 7.87 per cent in 2010 to 8.71 per cent in the fourth quarter of 2011.
“Inflation rate has declined steadily from 15.6 per cent in 2010 to 9.32 per cent in Aug. 2011.
“There was positive net inflow of foreign exchange in the second quarter of 2011 with a positive real interest rate.
“There has also been a relative stability but recently depreciating exchange rate trend with improved manufacturing output growth and non-oil exports. ”
Sanusi added that the reform had boosted investors’ confidence in the financial system and enhanced the reliability profile of banks in Nigeria.
He added that as at September, all banks in the country had been fully recapitalised.
The apex bank chief said Africa was “largely shielded from the current global financial crises because of its limited integration with the global economy and the international financial system”.
He said in spite of that, the region had “to be readily prepared for the likely consequences of the Euro zone crisis on its economic system”.
“As you are aware in many EU countries, spill over risks from the financial and economic woes have intensified and there are concerns about upsurge in financial instability.
“The average growth rate for most of the economies in the region is projected at six per cent on the back of strong domestic demand and accelerating exports.”
He said although considerable progress had been made in economic growth and financial system stability, threats still lingered.
He, therefore, urged member-states to leverage the West African Monetary Zone, to strengthen cross border supervision, adding that improvement in the areas of capacity building and transparency in financial reporting was essential for standardising regulatory guidelines in the region.
He further added that collaborative efforts were required to improve regulatory standards and strengthen institutional capacity.
“ECOWAS countries should be ready to make changes in line with the peculiarities of their economies and international best practices.”
Also, Mr. Akpan Ekpo, the Director-General of WAIFEM, said the conference would enable stakeholders to develop a roadmap that would help the region to achieve sustained economic development.
The two-day meeting will witness discussions on banking and financial sector reforms, including trade, aid and growth issues as well as the implications of the reforms on the region.