Making Reforms Work: How Stewardship Regulation Can Unlock Inclusive Growth in Nigeria

Abstract

Nigeria's drive for inclusive growth requires regulators that protect the public interest while enabling enterprise. This paper argues that a prevalent hardline enforcement posture—characterised by punitive actions at the first sign of non-compliance—can deter investment, discourage foreign direct investment (FDI), entrench informality, and undermine policy execution. Drawing on international regulatory best practice, I recommend a stewardship approach: an approach that prioritises education, handholding, and iterative compliance over immediate sanctions. The paper outlines the economic costs of rigid enforcement for SMEs and large businesses alike, highlights examples of collaborative regulation, and offers actionable policy recommendations to institutionalise stewardship for resilient, growth-supportive governance.