The inauguration last month of a new Central Bank of Nigeria governor who promises to open up the banking sector and encourage foreign investment bodes well.
Lamido Sansui, formerly chief of Nigeria's biggest bank, First Bank of Nigeria, replaced long-time governor Chukwuma Soludo. He has vowed to break with his predecessor's aversion to foreign ownership by encouraging international banks to make acquisitions as part of a wider plan to boost confidence in the financial system.
There is an urgent need for Nigeria to open up its banking sector to more scrutiny. Despite enormous advances under Mr Soludo, which saw much consolidation and growth in Tier 1 capital, the system remains opaque and secretive. Mr Sansui's first task must be to force the banks to synchronise the reporting of financial results. As it stands, Nigerian banks report results sporadically throughout the year, which clouds transparency and makes supervision tricky.
If Mr Sansui succeeds in his stated aims it could benefit the long-term future both of Nigeria and the rest of Africa. But too often on the African continent, grand plans and inspiring rhetoric come to nothing. It was dispiriting to hear, for example, at the World Economic Forum in Cape Town last month, many of the same platitudes often heard from Africa's prominent figures.
"We need better governance and better leadership," goes out the cry. But until there is more of a tangible effort to right these wrongs, it is unlikely Africa will move forward in the longer term. If Mr Sansui is to truly make a difference, he needs to deliver on his promises first.
