The Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi has said the Nigerian banking system is now stable and well positioned to stimulate growth and development of the economy. Sanusi also said that the CBN would be adopting a strategic approach to increase financial inclusion in the system to 70 percent as against the current level of 36 per cent, even as he declared that the apex bank had been keen on increasing the impact of the banking system on the economy. He was quoted to have made these remarks at the end of the 3rd Bankers’ Committee Annual Retreat in Calabar, Cross Rivers State.
According to him, the banking industry agenda for 2012 would be to address outstanding issues relating to the restoration of the balance sheet of banks, entrenching corporate governance, avoiding build-up of non-performing loans and encouraging lending to the agricultural sector, amongst others.
He explained: “After two years of focused attention by the regulator and operators, the nation’s financial crisis is in the final lap of resolution. We affirm our commitment as bankers to a stable financial system for Nigeria and one that contributes to economic development.”
The Bankers in a communiqué at the end of the retreat resolved to impact the economy more positively and also commended President, Goodluck Ebele Jonathan, for his reform agenda at creating jobs and growing the economy.
The Bankers’ committee, which had the CBN Governor, the Deputy Governors of the CBN, Managing Director of the Nigeria Deposit Insurance Corporation and the Chief Executive Officers of the deposit money banks chose the theme: “Financial System Stability and Implication for Economic Development,” in recognition of the challenges facing the global and local financial system.
According to Sanusi, the Committee had engaged experts from within and outside Nigeria for the retreat to develop strategies for improving on the gains recorded in real sector development, ensuring sustained stability of the financial system as well as determine further opportunities for financial system intervention.
Sanusi pointed out that the banking sector regulator had taken proactive actions to address short, medium and long term issues facing the banks.
The Governor also reiterated the commitment of the Bankers’ Committee to the success of the cash-lite policy, saying that “commencing with the pilot scheme in Lagos, the Central Bank is committed to bringing the nation’s payment infrastructure to global standards by 2015.”
Commenting on the planned removal of fuel subsidy he said the policy might trigger,” only about 2 percent rise is anticipated and that it is in the short term.”
“If inflation remains at about 10.5 percent and subsidy is removed, we expect it to be at about 12.5 percent, which is just an addition of 2 percent,” the CBN Governor added.
He pointed out that the banking watchdog was aware of consequent inflation as a result of the removal of fuel subsidy, “but most of what is said is exaggerated,” he said, adding that, “inflation impact will be present in the short term but over the long term the benefits of the removal will outweigh it.”