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CIBN seeks review of financial sector laws

The President, Chartered Institute of Bankers of Nigeria, Mr Erastus Akingbola, has canvassed for a review of all related financial sector laws by the National Assembly for the efficient operation of the financial system and the growth of the economy.

 

Skip to next paragraphIn a paper titled: Role of Banks in National Development presented at the 2008 Annual Law Week of the Obafemi Awolowo University Ile-Ife, Osun State, last Thursday, Akingbola listed the laws to include: the Dishonoured Cheques (Offences) Act, Central Bank of Nigeria Act and the Fiscal Responsibility Bill among others.

 

The Fiscal Responsibility Bill, he said, required special mention in view of its impact on the national development.

 

According to a statement on Tuesday, the bill is intended to moderate fiscal excesses of various tiers of government and will be of benefit in the management of liquidity by the CBN.

 

The statement quoted Akingbola, who is also the Group Chief Executive of Intercontinental Bank Plc, as saying that there was the need for government to improve infrastructure, especially electricity.

 

He said that the epileptic power situation in the country compelled banks and other operators in the economy to rely more on electricity generating sets.

 

“This makes the cost of operations high and keeps Nigerian businesses at a disadvantage vis-ŕ-vis businesses in other economies,” he noted. He added that government should seriously take up this challenge and find a lasting solution to poor infrastructural facilities.

 

According to Akingbola, one of the greatest challenges facing the post-consolidation era is the inadequacy of skilled and experienced human capital stock.

 

He observed that the activities of banks had expanded as a result of the consolidation as many banks had diversified their activities into insurance, capital market and mortgage financing.

 

“Many of them have also gone offshore and some are now involved in the management of Nigeria’s foreign reserve. These require adequate stock of skilled and experienced human capital. Besides, many young graduates are today being employed in banks and they require thorough grooming to enable them to imbibe the basic tenets of banking,” he added

 

 

 

 

 

Source:

The Punch Newspaper

September 3, 2008