Academic literature has shown Nigeria – as a developing open economy, with a relatively small financial system and a dependence on oil – is particularly prone to asset price bubbles. Banking reforms are a necessary but not sufficient condition to ensure this does not happen  BIS Review 49/2010  11  again – there is need for additional macro-prudential oversight.
There is an emerging international consensus that price stability should be supplemented by a robust macroprudential regulatory framework, which monitors and acts on signs of systemic risk. Warning signs are easy to miss without an organisation in place with specific remit to monitor systemic risk and act on signs of distress.