Written by Lanre Oyetade, Adekunle Tayo, Odidison Omankhanlen and Gbola Subair Friday, 24 September 2010 

 

The Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi, on Thursday, said that through the various initiatives being spearheaded by the apex bank, the overheads of banks were expected to be reduced by 30 per cent in the next three years.The apex bank boss said this in Abuja during the fourth annual banking and finance conference of the Chartered Institute of Bankers of Nigeria (CIBN).

 

Speaking on the theme “Evolving Financial Landscape: Strategies for Economic Resilience,” Sanusi explained that given the seriousness of efficiency to cost of funds, the CBN had started a shared services project in collaboration with banks aimed at centralising back offices and the industrialisation of common processes.

 

He added that the bank was also working towards establishing an Independent Power Project (IPP) for power supply to all banks operating in Lagos as a pilot cluster.All these initiatives, he stated, would lead to drastic reduction of overheads and ultimately reflect positively on the cost of funds.The governor also harped on the need to review the existing rules and laws relevant to the financial industry in Nigeria in line with the new financial environment and international best practice.

 

He stated that there was a compelling need to reform the laws pertaining to the mortgage sector particularly the Land Use Act.He also called for the establishment of special courts that would promptly handle cases of loan defaults, credit fraud and insider abuse. He said the CBN was scaling through on a number of legislative reforms aimed at unlocking the bottlenecks to the smooth flow of credit to the real sector and especially to small and medium enterprises.

 

Speaking at the same event, Vice-President Namadi Sambo commended the CBN on the banking sector reforms, adding that the Federal Government would continue to support the apex bank in order to ensure market discipline in the financial sector.According to him, “we would give you all the assistance needed to support the real sector of the economy. History must not be allowed to repeat itself as was witnessed in the past.” He said the Federal Government would continue to encourage the CBN in its drive for the adequate funding of the real sector with single digit interest rate.

 

He said, “we need to address power to ensure that power is stable. We have expended N10 billion on thermal plant for distribution to substations and we are working on other complementary measures to increase the megawatts as promised by the president when he unveiled the power sector reforms.”He enjoined Nigerians to support the government in achieving the desired objectives

 

Source:Tribune