The Central Bank of Nigeria is achieving the objectives of Financial Systems Strategy which is now in its final stages of implementation

|  By Anayo Ezugwu  |  Apr 3, 2017 @ 01:00 GMT  |

THE Central Bank of Nigeria appears to be achieving the aims of its Financial System Strategy, FSS 2020, which is in its final phase of implementation. Mohammed Suleiman, director, FSS 2020, said the strategy was put in place to sustain the microeconomic stability, deepen the banking payment and financial system in the country as well as evolve appropriate regulations and laws to drive the economy.

Suleiman, who spoke to Realnews in Sokoto State during the CBN 23rd Seminar for Finance Correspondents and Business Editors, said the final years would be spent consolidating all initiatives toward the final performance review of the strategy.

According to him, achieving the FSS 2020 will encourage transparency and promote other avenues of funding government expenditure, address shortage of qualified and experienced manpower, enhance corporate government regime as well as encourage made in Nigeria products.

For the FSS 2020 to be achieved government must provide infrastructures and build capacity to abridge skill gaps. Suleiman noted that government needed to create strong legal and regulatory framework to drive the economy and ease the conduct of doing business in the country.

Suleiman disclosed that the implementation of the FSS 2020 has prompted the Nigerian insurance gap to reduce from 94 percent in 2007 to 40 percent as at the end of 2016 as well as an advanced payment system that is being emulated by other countries on the continent. He said, through the implementation of the policy, there has been increased use of electronic payment in the country.

Last year, the volume of transactions that passed through electronic channels in the Nigerian banking industry grew by 90.3 percent from N27.23 trillion in 2012 to N51.8 trillion, according to data issued by the CBN. The impact of the policy on the insurance sector has been immense with improved participation in the sector.

“Since 2008 till now, which is about eight years, we are now told that we have bridged that gap to about 40 percent. That is encouraging because there has been a lot of reforms that are taking place and these are the effects of the FSS 2020. We will keep pressuring the Nigeria Insurance Commission, NAICOM, and telling them this is what to do to get it right,” he said.

Supporting, Charles Ohamara, head, financial markets, FSS 2020, noted that the policy has been used for the adoption of electronic payments in agriculture, as well as the establishment of working groups to offer opportunities education, hotels of entertainment, consumer bills payments, and government flows, health and transport.

He explained that there has been an introduction of SWIFT Sanction screening to improve transparency of international payments of the point of origination, while guidelines for offshore banking operations has been issued. Also there has been the deployment of new RTGS and Script less Securities Settlement System- S4, introduction of agent banking and implementation of Bank Verification Number to promote and strengthen the Know Your Customer initiative.

The FSS 2020 was inaugurated in 2007 by Charles Soludo, former governor, CBN, with the mission to drive rapid and sustainable economic growth primarily in Nigeria and Africa. The FSS 2020 blueprint was designed to develop and transform Nigeria’s financial sector into a growth catalyst and engineering Nigeria’s evolution into an international financial centre.

The implementation of the strategy was split into three phases: phase one (June 2007 – December 2012): This phase includes quick-wins that will be implemented within the first year, especially around the review and updating of the legal framework. This phase also commences the physical development of the LFC and implementing the technology and human capital initiatives. It requires concerted efforts and high level energy to give the implementation high momentum to drive it through the other years.

Phase two (January 2013 – December 2016) is to see the emergence of global brands and world class players, integration of African financial markets and regulatory environment. Development of the physical site for the LFC to continue with a review and revalidation of the strategic objectives and initiatives carried out.

Phase three (January 2017 – December 2020) is to herald the emergence of world class financial services industry consistent with the objectives of the FSS 2020 concept. The the final years would be spent consolidating all initiatives toward the final performance review of the strategy.

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