Vice- President Shettima Sends Urgent Message To Central Bank And Other Banks, Ask Them To Do This Immediately; See Details
Vice President Kashim Shettima has called on the Central Bank of Nigeria (CBN) and commercial banks to urgently address ongoing cash shortages and the exploitative practices of point- of- sale (POS) operators, which have become a significant concern for many Nigerians.
Speaking at the 2024 Bankers’ Committee annual retreat in Abuja on Friday, Shettima, represented by Dr. Tope Fasua, Special Adviser to the President on Economic Matters, stressed the importance of financial inclusion and restoring public confidence in the banking sector. He urged the financial institutions to resolve key issues hampering the government’ s efforts to achieve economic inclusivity.
Highlighting the challenges faced by Nigerians, Shettima expressed concern over the high and arbitrary fees imposed by POS operators. ” There appears to be a moral hazard and selection issues with the involvement of street- level POS merchants. Many Nigerians complain of excessive charges and exploitation by these agents, ” he stated. The Vice President called for decisive measures to address these practices and enhance access to financial services.
Shettima also reiterated the government’ s commitment to lowering Nigeria’ s debt- to- GDP ratio to 30% by early 2025. He urged banks to expand their support for Micro, Small, and Medium Enterprises (MSMEs) and collaborate with federal and state authorities to improve access to affordable consumer credit.
During the retreat, which brought together key players in the financial sector, participants discussed strategies to tackle economic challenges and foster sustainable growth in Nigeria’ s banking industry. Shettima noted that the National Bureau of Statistics is working on updating the country’ s economic indicators, including GDP and the Consumer Price Index, which have not been rebased in over a decade. He emphasized the need for more frequent updates to align with global standards.
Central Bank Governor Olayemi Cardoso also addressed the retreat, acknowledging the financial crisis inherited by the apex bank. He revealed that while the economy grew at an average annual rate of 1. 8% over the past eight to nine years, the money supply expanded by 13% during the same period. By the end of 2022, the outstanding Ways and Means financing accounted for approximately 11% of GDP, which Cardoso described as unprecedented.
Cardoso called for bold and innovative responses to address these challenges, urging the committee to focus on creating an environment that fosters innovation, strengthens public trust, and builds a more inclusive economy. He emphasized the importance of developing robust solutions to match the scale of Nigeria’ s economic difficulties and advance the nation’ s progress.
