Vice-President Kashim Shettima has asked banks to address
cash scarcity at the automated teller machine (ATM) and point-of-sale (POS)
related issues.
Speaking at the bankers’ committee retreat in Abuja on
Friday, Shettima said Nigerians are complaining about the unavailability of
cash at bank ATMs and the scarcity is impeding efforts to ensure financial and
economic inclusion.
Shettima, who was represented by Tope Fasua, special adviser
on economic affairs, urged banks to address some unethical practices by POS
operators causing cash scarcity.
“We would like to take this opportunity to appeal strongly to the committee to urgently clear up thorny issues in the sector, some of which are impeding the efforts at financial and economic inclusion,” Shettima said.
“Nigerians complain bitterly that they are unable to access
even minimal cash when most needed.
“There seems to have been some moral hazard and adverse
selection problem with the involvement of street-side PoS merchants.
”Nigerians complain about high and arbitrary charges and
exploitation by rogue agents, which we are sure you will be able to tackle with
concerted efforts.”
Citing the recent branch openings by Nigerian banks in
France, Shettima said the country’s financial institutions have shown dominance
globally.
On November 29, the United Bank for Africa (UBA) said it has
signed a business cooperation deal with the French government to commence full
banking operations in France.
Zenith Bank also announced the inauguration of its services
in Paris.
He also cited the concept of new capability development as
propounded by Ricardo Haussman, a professor at the Harvard Kennedy School.
“It suggested that a country should try using technology to
export capabilities that it sees as a comparative advantage,” he said.
“Banking is one sector we have excelled at over the years.
It is, therefore, a valid strategy for you to consolidate upon, as you continue
to excel.
“The recent opening of Nigerian bank branches in France is a
good testimony in this direction.”
Shettima asked the bankers’ committee to strengthen the
management mechanisms to tackle risks that come with constant change in the
banking system, including fintechs.
“This has greatly transmogrified in recent times, with the
incursion of different types of FINTECHs, Neobanks, agency banks and other
arrangements directed at improving financial inclusion,” the vice-president
said.
“There are also the implications of cryptocurrency and
decentralized finance on banking as we know it.
”These developments have profound effects on the retail
segment of the market, and so our banks must continue to be deft and nimble
even in the face of higher capital requirements.”
‘NIGERIANS HAVE CUT
DOWN ON FOREIGN TRAVELS’
Shettima said monetary policy reforms and unification of
foreign exchange (FX) rates are yielding positive results.
He said the results include how Nigerians have cut back on
some foreign travels, and foreign education has slowed down to the extent that
many foreign universities are feeling the pains.
“There is now more focus on local educational institutions,
and many world-standard facilities have now debuted in Nigeria,” he said.
“The weakening of the Naira has also resulted in a spike in
exports as the Marshall-Lerner principle in economics has kicked in for
Nigeria.
“The principle states that a nation is likely to see an
increase in exports and gain from currency devaluation if exports are price
elastic.”
He said the results also include a trade surplus of $4.5
billion, discouraging price elastic imports, and encouraging local value-added
production.
“In the first quarter of 2024 Nigeria saw a trade surplus of
four billion dollars, which increased to 4.5 billion dollars in the second
quarter,” Shettima said.
“The Gross Domestic Product (GDP) growth rate of 3.46 per
cent seen in the third quarter was driven largely by non-oil exports as well.
”This is a validation of the stated commitment of the
government to diversify the economy.”
The vice-president asked the banks to develop more
initiatives towards the financing of micro, small, and medium enterprises
(MSMEs).
Shettima also asked that they continue to support the
efforts of the federal government in the area of consumer credit culture.
The National Bureau of Statistics (NBS) on Friday said
Nigeria recorded N5.81 trillion trade surplus in the third quarter (Q3) of
2024.
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