The issue of inequality, corruption, unemployment and insecurity in Nigeria can be tackled by carrying out complimentary reforms, Central Bank of Nigeria (CBN) has said.
Acting Governor of CBN, Dr. Sarah Alade made the assertion on Monday in Abuja while speaking at the first National Seminar on banking, finance and allied matters for legislators.
Titled “The legislature and the banking and finance sector: partnering for Nigeria’s economic growth and development”, the seminar was organised by the Chartered Institute of Bankers of Nigeria.
Alade emphasised that workable policies are the best means of combating challenges resulting from inequality and unemployment, adding that such policies is vital for consolidation on successes earlier recorded in some of the reforms carried out by the bank.
Citing an example, she said while some of the reforms had yielded results that have impacted positively on the economic and financial environment, the lack of basic amenities, inadequate infrastructure, high rate of fraud, corruption, and youth restiveness has worked against most of the growth prospects accrued.
Alade, who was represented by Deputy Governor, Corporate Services, CBN Suleiman Barau, she affirmed that focus must be given to diversifying the nation’s economy such that oil would not be the only revenue source.
“The successes achieved over the years could not have been possible without the right legal framework,” she said.
“However, to consolidate the gains so far made in the financial sector reforms processes and arrest the challenges, there would be need for other complementary reforms to address the rising incidence of poverty and growing unemployment rate, insecurity of life and property, lack of basic amenities and inadequate infrastructure, high rate of fraud and corruption, youth restivess and other social vices which constitute hindrances to our growth prospects.”
About the plan by the National Assembly to remove the apex bank’s autonomy, Alade said such move would only make the bank reactive, rather than being proactive in the discharge of its mandates.
Alade advised that rather than taking away the bank’s autonomy, full independence should be accorded to it under the law a la current global environment trend.
In his own speech, President and Chairman of Council of CIBN Dr. Segun Aina said his organisations aim of holding the seminar is to strengthen the banking sector.
“The banking sector in Nigeria believes so much in synergy with legislature and there is need to synchronise the relationship into achieving great benefits to Nigerians,” Aina said
Also speaking at the event, Senate President, David Mark said while the reforms in the banking sector had been able to reposition the sector for greater responsibilities, there is still more work to be done to achieve inclusive growth.
Represented by the Chairman, Senate Committee on Planning, Senator Barnabas Gemade, Mark said the harsh and unbearable terms put forward by the banks to their customers must be addressed.
“In recent times, we have embarked on reforms that are geared towards all round stability and efficiency in the banking sector with the firm belief that this will also fast track development in other sector of the economy especially in agriculture, telecommunications and Small, Medium and Micro Enterprises,” Gemade said.
“A lot has been said in financial sector reforms but much need to be done to arrive at the desired destination. A situation whereby the massive returns on investments remains the priority of the banking industry while small scale and medium industries struggle for survival under the harsh and unbearable terms handle by banks
