Understanding The Nigerian Financial Regulatory Architecture

INTRODUCTION

The financial sector - banking, capital markets and securities, insurance, as with any other sector of the economy, is vital to Nigeria's growth and development, thus it is crucial to properly safeguard it by means of laws, adequate supervision and monitoring. This is especially important as it ensures that a balance is maintained because failure to do so may have a ripple effect on all other sectors of the economy. This then explains the role regulation plays in preserving the economy of any society or state. Regulation in this regard, comprises of the various laws, rules and institutions which exist to ensure that the financial ecosystem of a society is protected with a view to preventing and or absorbing financial risks as they may arise, as well as protect the investing public, and ensuring financial stability of the economy.¹ In other words, it is the body of rules which govern the product and services offered by financial institutions. These laws