Economy Would Be out of Recession by Second Qtr, CBN Restates

• Plans to create depository of fraudsters 

 Nume Ekeghe

The Central Bank of Nigeria has restated that the Nigerian economy would come out of the recession in the second quarter of 2017.

The Director, Banking Supervision Department, CBN, Mr. Ahmed Abdullahi, gave the assurance at a media briefing shortly after the bankers committee meeting in Lagos thursday. He said the pumping of dollars into the FX market by the CBN has resulted in prices turning downwards and convergence of rates, which have positive effect on the economy.

Abdullahi said: “The recent development in the FX market has led to prices turning downwards and convergence of rates. We have seen inflation trending downwards. There is a forecast that by the second quarter of this year the economy will be out of recession and we are going to see positive growth.

“The fact is that the CBN has the arsenal on its war chest to be able to sustain what is happening in the FX market. That is why CBN recently introduced new windows for small and medium enterprises (SMEs) to access FX through their banks with minimum documentation. There is need for the public to know the existence of the window and SMEs should go to their banks to access the window to improve their businesses.”

According to him, the addition FX window recently created to cater to investors and exporters would aid and attract foreign direct investments (FDIs) back into country.

He added: “There is also another initiative, the investor/exporter window; it will be a market where prices would be determined by market forces and it is a window that will allow investors’ to come in and trade their FX at a price they consider appropriate. Because of the convergence of rates, confidence is going to be built in the market so we are likely to see investors come in order to further build confidence, that is why we have this window that will enable them come in and improve the inflow of FX in the economy.”

He also emphasised that 5per cent of the banks profit would be set aside for financing of SMEs and agriculture. “That will help in fast tracking the process of the economy coming out of recession; so the banks are determined to contribute 5per cent to be used in providing equity funding for Agric and all scale businesses in export drive”, he stressed.

Also speaking at the event, Managing Director of Access Bank, Mr. Herbert Wigwe, said part of the resolutions reached at the meeting was to mitigate fraudsters from the banking system.

“The committee also deliberated on topical issues that had to do with fraud and one of that is the electronic and card fraud and part of the deliberation was that there is need to create a central depositary, which is a database of suspected fraud through the system.”

“So once that data base is set up and there is suspected case going through the system, we can have ways of ensuring there is strong detergent for people who are known as fraudsters within the system.”

“Hopefully if that is implemented, what you will see is that the level of fraud, which is coming through SMS and bank cards will decease significantly. Very strict measures will be implemented to make sure that people don’t do it and repeat offenders are taken out of the banking system to make sure that we sanitise the overall system. It is different from credit default we are talking about fraudsters” he added.

On his part, the managing director of Ecobank Nigeria, Mr. Charles Kie said: “Overall what the bankers committee also reemphasised was the need for all the banks to continue supporting the economy and ensure that they can effectively help the country get out the recession.”

“All the measures that have been taken are meant to support that and obviously the banking industry is taken a strong view on the level of support they want to bring and we are all committed to the decision that have been taken in terms of improving the FX market and also on the decision that has been taken on ensuring that fosters are going forward are not only identified and taken out of the system in order to ensure there is sustainability in the banking industry.”