Banking Reforms Key to Financial Stability, Economic Growth in Nigeria — LASU Don

Banking Reforms Key to Financial Stability, Economic Growth in Nigeria — LASU Don

By Tope Bankole

Professor of Finance in the Department of Finance, Faculty of Management Sciences, Lagos State University (LASU), Professor Sikiru Oyerinde Ashamu, has highlighted the significant impact of successive banking-sector reforms on the structure, stability and performance of Nigeria’s financial system.

Professor Ashamu stated this while delivering the 129th Inaugural Lecture of Lagos State University, titled “From Reform to Resilience: Banking Sector Transformation, Financial Stability, and Economic Growth in Nigeria,” at the University’s Ojo campus, Lagos State.

The Finance scholar examined the evolution of Nigeria’s banking sector, tracing its development through major reform programmes, periods of financial distress, consolidation initiatives and the increasing adoption of digital technologies. He also highlighted emerging risks associated with the transformation of the financial sector.

According to Professor Ashamu, regulatory and institutional interventions have played significant roles in shaping the banking industry, particularly in strengthening financial stability and improving the capacity of banks to support economic activities.

He emphasised the importance of strong institutions and effective corporate governance in sustaining a resilient banking sector, stressing the need for sound regulatory frameworks, responsible financial practices and technological resilience to safeguard the stability of the financial system.

The scholar further examined the relationship between banking-sector transformation and broader economic development, particularly the role of financial institutions in promoting financial stability, economic growth and financial inclusion. He noted that the banking sector must continue to evolve beyond conventional financial intermediation by supporting productive investment, expanding access to financial services and contributing to sustainable national development.

The 129th Inaugural Lecture marks another significant academic milestone for Professor Sikiru Oyerinde Ashamu and Lagos State University. The University community, colleagues and the wider academic community have congratulated the scholar on the achievement and welcomed him into the distinguished body of Professors of Lagos State University.