CBN Reassures on Financial Sector Strategy 2020

The Central Bank of Nigeria (CBN) has assured that the Financial System Strategy which would help ensure that Nigeria had the most diversified financial system among emerging economies by 2020 will not fail.

Engr Oluwatoyin Jokosenumi, Head, FSS 2029 Unit, CBN, stated this while speaking at a seminar on “GDP rebasing and implications for FSS 2020.”

He noted that unlike other past programmes of government that failed in the past, the FSS would succeed.

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 Nigeria 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 said, “In FSS 2020, we believe implementing the transformational programs 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 conceptualized the idea, before we move into planning and then execution.

“We will ensure the monitoring of the project and ensure that all the 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.

“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 to invest more in domestic infrastructure projects.