Friday 3 June 2011

Word Bank launches book to help Nigeria financial sector grow


On June 3, 2011 · In News
Abuja – For the Nigerian economy to rank among the 20 best economies in the world, the World Bank on Thursday launched a book that can help the financial sector effectively contribute to its growth.
The book is entitled: “ Achieving Nigeria’s Financial System Strategy 2020’’ ,  is a  Central Bank Strategy to improve the financial sector and enable it to  achieve growth in the Nigerian economy.
Mr Ismail Radwan, World Bank Lead Economist, who launched the book, said it was a compilation of the bank’s recommendations to the Federal Government to help enhance the financial sector.
He said the book touches all areas of the sector and proffers ways forward for the growth of the economy.
“This book is a compendium and summary of the analysis of the Nigerian financial sector.
“In each area, the book provides a detailed implementation plan that reflects a consensus of key stakeholder views and international best practice,’’ he said.
Radwan said that some of the analysis of the book already undertaken by the Federal Government had led to “quick wins’’ for Nigeria.
He said that the recommendations had also helped to remove the monopoly enjoyed in remittances in the country and reduced the rates from 8  per cent to 5 per cent.
“It is estimated that this move alone has put additional 60 million dollars into the hands of ordinary Nigerians instead of the money transfer companies.
“Further gains are possible,’’ he said.
Radwan added that the recommendation to strengthen banking supervision, improve risk management and financial disclosure were not quickly adopted.
He said that after the weaknesses in banks were revealed by CBN,  bold actions were taken.
The economist said the recommendation to strengthen the banking sector was critical for the growth of the nation’s economy.
“The banking sector crisis is estimated to cost Nigeria about 15 billion dollars leaving few families untouched,’’ he said.
He said the book also looks at the potential to develop Nigeria’s dormant insurance industry by strengthening re-insurance, improving transparency and updating legal framework.
Mr Onno Ruhl, World Bank Country Director in Nigeria, said the book was a roadmap for Nigeria to be one of the top 20 economies.
“Nigeria deserves to be one of the top 20 economies in the world by 2020 and this report provides a roadmap toward achieving that.”
Ms Arunma Oteh, Director-General, Security and Exchange Commission, said there was a need to focus more on implementation of the recommendations.
She commended the effort of the bank in compiling the book, adding that there was need to set a milestone for the sector to enable it to achieve the objectives of the book.
“There is need for us to set a milestone so that we will know what to achieve  every year before 2020.
“This will help us to know where we are going and also evaluate our ability to achieve the strategy by 2020,’’ she said.
Alhaji Muhammad Ahmad, Director-General PENCOM, said there was need for financial literacy in the country.
“Nigerians need to be educated on issues in the financial sector by so doing everybody will be carried along in what the sector is doing,’’ he said.
He added that quarterly publications or annual review of the reports in the sector would go a long way to carry everybody along.
He commended the effort of the world bank in coming up with a book that would help the sector achieve growth in the economy. (NAN)

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