Central Bank of Nigeria
The problem with the Central Bank of Nigeria (CBN) is that it is in “guerilla” mode. Ceaselessly striving to blind-side pockets of resistance to its attempts at repairing/reforming the banking sub-sector. Now, this is understandable, giving the heft of the “champions” it has tried to stare down as it gradually restores order to a chaotic industry.
But the markets also expect to be able to predict the CBN’s moves. Or how else does the apex bank hope to anchor expectations (on the direction of rates, to take but one example)?
Compelling reasons, there may be (and hopefully, someone would remember to let us know after the fact) as to the reasons behind the CBN’s decision to bring forward action on the ailing banks (whose efforts at recovery have been anything but persuasive) from the earlier end-September deadline to the first week in August. Still, by regularly creeping in on the markets, and scaring the s*** out of ’em, expect the CBN to suffer a credibility deficit going forward!