The Nigerian Banking sector has been hailed for recording stability despite the rising risks and surging shocks in the financial circle.
President of the Lagos Chamber of Commerce and Industry (LCCI) Asiwaju Michael Olawale-Cole made the commendation Tuesday during the Nigeria Deposit Insurance Corporation (NDIC) special day at the 2022 Lagos International Trade Fair (LITF)
LCCI said that President related Global inflation is currently at multi decade highs, monetary authorities in both developed and emerging markets have continued to tighten monetary policy against the backdrop of rising inflation and currency pressures.
“Global financial conditions have tightened, leading to capital outflows from emerging and frontier market economies with unstable macroeconomic fundamentals.
“Amid heightened economic and geopolitical uncertainties caused by the coronavirus pandemic and russia–ukraine war, the Nigerian banking system has shown a high level of resilience. The Nigerian banking system is large with assets equivalent to about 50% of gdp as at the end of 2021. Deposit money banks (dmbs) dominate the system with over 75% of all assets. Notwithstanding these developments, the Nigerian banking system remained healthy overall as the capitalisation level is above the prudential requirement and the non-performing loans ratio is also within the requirement at the end of second quarter 2022.
“It is important to note that the current global environment has exposed the increasing relevance of deposit insurance in stabilising turbulent banking systems and as a buffer for financial system stability. There is no doubt that Nigeria deposit insurance corporation plays a central role in the maintenance of stability and public confidence in the nation’s financial system” LCCI President affirmed.
He disclosed that NDIC has recorded several successes including payment of over N119.1 billion to over 5.5 million depositors, creditors and shareholders of failed banks, promoting financial literacy and financial inclusion, maintaining strong corporate governance and accounting, promoting regional synergy and collaboration with other government agencies.
While speaking at the Lagos State Employment Trust Fund (LSTEF)special day, Otunba Olawale-Cole commend the vision of the Lagos state government for prioritising the growth of Micro, Small and Medium Enterprises (MSMES), inspiring the creative and innovative energies of Lagos residents, reducing unemployment, improving access to finance and creating an enabling environment for sustainable growth of the sector.
LCCI recalled that in less than seven years since the Lagos State government inaugurated the LSETF, has implemented several programmes, including: MSMES support – MSME loan programme, MSME recovery fund Nnd Lagos cares; Start-up support (“lagos innovates”, workspace voucher programme, talent development student loan programme and idea hub); Employability support project which has partnership withUnited Nations Development Programme.
“Since inception, the fund has created over 124,500 direct and indirect jobs and 55,170 new taxpayers have been added to the Lagos state tax database. In 2021, the fund also distributed N12 million to 19 beneficiaries, workspace vouchers issued to 105 beneficiaries, 50 persons trained in programming in partnership with ustacky, 22 beneficiaries mentored in the idea hub programme. Also, 2,722 applicants were trained and certified and about 2,156 beneficiaries placed in jobs or self-employed.as the lagos economy grows, the role of the fund in improving the business environment and promoting human capital development becomes more imperative and impactful.
LCCI President urged the fund to consider key economic sectors including agriculture, agro-processing, manufacturing, information technology, health and education etc that can support the state in achieving its vision of global economic and financial hub.
He announced that LITF featured some African countries in the Africa hall, hosted by AFREXIM bank, as a practical way to promote AFCFTA and boost intra-africa trade. The countries include Ghana, Sierra Leone, cote d’ivoire, Rwanda, South Sudan, Cameroon, etc. I warmly welcome them to Lagos, Nigeria.