Promoting Financial System Stability through Regulation and Adjudication: Major Implication under the NDIC Act 2023 and BOFIA 2020

Abstract

The financial system safety-net of any economy is firmly rooted on three edifices; prudential regulation/ supervision, deposit insurance and the Central Bank of Nigeria’s overarching role as the lender of last resort. For a financial system to blossom there must be in place an effective, efficient and transparent gatekeeper, whose passion in regulating and lubricating the system is second to none. A judicial system willing, able and ready to deliver justice in moments of infractions and malfeasances that threaten the financial system must also be in place. With stoic judicial and regulatory spaces, the financial ecosystem will be on a pole position to attain positive growth trajectory. This article examines the roots and branches of the financial system vis-à-vis the unique roles of the regulators and the adjudicators. This work also suggests, that going forward, the system needs to be recalibrated to deliver profound outcomes.