The Central Bank of Nigeria (CBN) has assured the nation that the Financial System Strategy (FSS) would not fail to make Nigeria have one of the most diversified financial systems among the emerging economies by 2020.
According to the apex bank’s Head of FSS Unit, Mr. Oluwatoyin Jokosenumi, said this while delivering a paper entitled, “Rebasing of Nigeria’s GDP and Implications for FSS 2020” at the 19th seminar for Finance Journalists and Business Editors in Kaduna.
Jokosenumi also noted that 20 million micro, small and medium-scale enterprises (MSMEs) could accommodate over 20 million unemployed youths in the country.
He stated that unlike other past programmes of government that failed, the FSS would succeed.
The Head of FSS noted that there was need for government to increase the provision of long term low interest financing for MSMSE; collaboration on the development of financial services, products and channels that will promote the sub-sector and consistent capacity building programmes in growing it.
According to him, there was also the need to promote financial reporting and governance; coupled with the enhancement of access to finance with business development support; collaborate with quality control organisations to ensure MSMSE output meet national standards, among others.
He also said there should be collaboration among the players in the financial sector to support the sub-sector.
However, he said following the rebasing of the economy, there was need to have a financial system that would support the diversified nature of the economy.
He argued that if the economy is to achieve its desired growth rate of seven per cent after rebasing, it implies that the country would have to post a much bigger level of economic output that would be greater than what it was currently doing.
He stated: “In FSS 2020, we believe implementing the transformational programmes will positively influence the economic output and ultimately meet and exceed the desired economic growth rate target of seven per cent.
“I have the confidence that this strategy will not fail because there is a step-by-step framework to achieving this vision. The framework is based on a process engineering strategy; the first is that we conceptualise the idea before we move into planning and then execution. We will ensure the monitoring of the project and ensure that all associated risks are addressed.”
On implication of the FSS 2020 vision for the financial markets, he said the apex bank would work with the government on fiscal and structural policy as the foundation for long-term stability of the financial system.
“We will work with the government to put an incentive structure for large companies to list on the Nigerian Stock Exchange (NSE). We are also working with the government in operationalising the commodities exchange market,” he said.
For the pension sector, he said the CBN would collaborate with key stakeholders to structure and develop products suitable for pension investments.
The move, according to him, would enable Pension Fund Administrators (PFAs) to invest more in domestic infrastructure projects.
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