Senate C’mmittee on banking holds two-day retreat to simplify financial operations

How Nigerian government can strengthen the Naira


Chairman of the Senate’s Committee on Banking, Insurance and other Financial Institutions, Senator Tokunbo Abiru, says for Nigeria to ensure inclusive growth, Financial operators must improve on their Credit Culture.

This suggestion was made at a 2 day retreat in Abuja, titled: to sensitize members of the Committee and Nigerians on improving the Country’s Financial Landscape.

The Senate Committee on Banking, Insurance and other Financial Institutions put together this retreat for its members

The purpose is to meet minds and equip themselves with the requisite knowledge on ways the country can improve its Financial Landscape, achieve stability, grow it’s economy, and safe guard the interests of citizens.

At the retreat, experts expressed concern about the naira’s strength against the US Dollar. Over the past few months, the naira has continued to weaken against the dollar after its devaluation and the
unification of the foreign exchange market by the Federal Governtent.

Biodun Adedipe, a financial expert and founder and Chief Consultant of B, Adedipe associates Limited (BAA Consult), spoke at the retreat and advised lawmakers that the government needs to ensure that all local transactions are done in naira. Adedipe believes that since the naira is Nigeria’s legal tender, there is no reason anybody should sell an asset or provide a service in dollar. He stated that doing so would be fighting on the side of the dollar.

The Chairman of the Committee, Sen. Abiru noted that Nigeria’s financial sector is facing several challenges, including price instability driven by high inflation rates, foreign exchange policy management, and negative interest rates.

He added that the Central Bank of Nigeria Act 2007 and the NDIC Act 2010 need to be reviewed to reflect market realities and global development in Fintech, cryptocurrency and blockchain technology

Abiru assured that the Senate Committee would strengthen the capacity of financial regulators to
successfully monitor Institutions under its purview and review and update obsolete regulations and
guidelines te reflect present market realities data-driven predictions and leading practices.

He also stated that the Senate would explore legislative measures to incentivize financial institutions to increase lending to the real sector and promote financial inclusion by expanding access to financial services for underserved and remote communities, among others.

The retreat also seeks ways to Simplify the operations of Nigeria’s Financial systems, make it beneficial and improve on its access to credit.

The Lawmakers will use legislative instruments to surmount some of these challenges , and address the increasing number of abandoned mega projects and also streamline the obligations of the Central Bank of Nigeria .

With a rapidly changing financial landscape, driven by technological advancements, changing consumer expectations, and evolving global dynamics, It is imperative to adapt and respond to these challenges

And that should be in a manner that fosters innovation, promotes financial inclusion, and maintains the highest standards of transparency and accountability.