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Nigeria

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Abstract

We document Nigeria’ s experience with financial reforms during 1986 to 1993, with some continuing adjustments thereafter. On the basis of the standard performance indicators in the literature, we find no evidence that the reforms have either enhanced the financial system or facilitated macroeconomic stabilization. However, the perfidious execution of the programme suggests that the reformers have not kept faith with the reforms either. A clear lesson that seems to emerge is that institutions matter, so that capacity-building ought to be an integral part of any feasible reform programme. Achieving economic growth of the kind typically associated with financial reforms requires fiscal discipline and other enabling roles by the state because of coordination failure, and other imperfections inherent in financial markets.

Keywords

Interest Rate Monetary Policy Central Bank Foreign Exchange Deposit Insurance 
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© International Development Research Centre 1998

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