BEVERLY HILLS, July 18, (THEWILL) – In the financial sector, there is no doubt that the present times are not the best for the nation’s economy. While the gloom in the international oil market, early in the year, posed a serious challenge to revenues accruing to the federal government, the global health challenge that set in towards the end of the first quarter compounded the problem.
Without any soothsayer telling Nigerians that tough times are, indeed, here at last, the stark reality of a second economic meltdown and the attendant depression in less than five years has been staring all in the face.
The lockdown that was imposed by the federal government across the country for almost three months as a way of containing further spread of the coronavirus only succeeded in dealing a big blow on Nigeria’s economy that was already on life support.
In the midst of the confusion and apparent state of helplessness, the financial sector, which holds lots of hope for investors and manufacturers as well as employees, became so vulnerable as the fear of an economic meltdown became rife.
However, the safety nets, effective and efficient guidelines as well as other firewalls already put in place by the Central Bank of Nigeria to fortify, strengthen and protect the financial sector from any vulnerability, over the years, became the saving grace.
The resultant effect is that instead of the genuine fears of investors and other stakeholders, Nigerians now have more confidence in the country’s financial sector despite the current economic slowdown.
It is heartwarming to note that the repositioning and ongoing revitalization of the financial sector launched by the CBN Governor, Godwin Emefiele and his deputies, have returned sanity to the financial sector such that Nigerians can now sleep with their eyes closed with the assurance that, unlike before now, their monies and other investments in the banks and other financial institutions are very safe.
And just as the customer now feels very comfortable that his or her investment is secure and protected, the financial institutions are also happy at the innovations, measures and new safety nets being put in place to prevent abuse of incentives, loans and other regulatory measures by the customers.
A good case is the newly introduced Global Standing Instruction, which takes off on August 1, 2020, through which banks would now be empowered to recover their funds from debtors who have money in banks other than where they are defaulting in loan repayment.
Before the recent GSI, which has been described as a new dawn in the country, the CBN has been proving to Nigerians that it would not relent in ensuring financial stability and stimulate the economy even in the face of the current economic challenges.
Many Nigerians would readily attest to the fact that the financial inclusion initiative championed by Mr. Emefiele is now paying off. During the lockdown, thousands of hitherto unbanked people who have now been brought into the banking system, could access their monies through the local payment points now operating even in rural communities across the country.
That the digital payment system across board is fast gaining currency is another testimony of the support and encouragement by the CBN, a development that has been acknowledged by leading research organisations, including ABI Research and Oxford Business Group.
Other innovations by the apex bank include the flagship Anchors Borrowers Programme, an initiative that provides cheap funds to local farmers to cultivate rice, millet, corn, cocoa and palm fruits; sanity and stabilization of the foreign exchange market through the Investors and Exporters FX Window; the loan to credit policy with the directive that more credit should be extended to the private sector and the small and medium enterprises with interest rate reduced from 9 percent to 5 percent as well as the ambitious move to reinvigorate the economy with N107.45 billion from the N1.15 trillion COVID-19 Pandemic Intervention Fund out of which a whopping N50 billion has been earmarked as target credit for affected households and SMEs.
This is in addition to the N1 trillion credit to boost local manufacturing and production in critical sectors and another N100 billion intervention fund in healthcare loans to expand capacities of practitioners.
The agriculture ventures funding is also going on seamlessly with farmers being encouraged to access the funds to increase their production output. The CBN has also announced a moratorium on principal repayments on its intervention loans well as payment deferrals and rate reductions on taxes.
THEWILL also notes the role played by Mr. Emefiele in rallying the organized private sector response to the coronavirus pandemic under the Private Sector Coalition Against COVID-19, CACOVID to support the Presidential Task Force on COVID-19 where more than N25 billion was raised within a few weeks to build treatment/isolation centers countrywide and procure critical medical equipment and PPEs as well as provide relief for the most vulnerable in our cities.
As President Muhammadu Buhari and Mr. Emefiele continue to champion the diversification of the economy and return the country to agriculture and manufacturing as viable and sustainable alternatives to developing the economy and earning foreign exchange, we urge Nigerians home and abroad as well as those who wish it well not to sabotage these efforts.
The country is clearly turning the corner and could repair its self-inflicted damage this decade if it steadfastly stays the course.
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