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CIBN stresses importance of banks to economic recovery

By on August 26, 2016

The financial services sector is at the heart of the economy and it must lend to the Micro, Small and Medium Enterprises in order to enhance economic recovery, the President/Chairman of Council, Chartered Institute of Bankers of Nigeria, Prof. Segun Ajibola, has said.

According to him, the banking sector drives the economy, and as such, the overall performance of the economy hinges on the financial services sector.

The CIBN boss spoke at the institute’s 2016 induction and prize awards day held in Lagos.

The event was themed, ‘Starting up the right way: Attracting investment to your fledging business’

He said, “If in a recessionary setting that we are talking about today, banks and bankers also play some crucial roles in bringing back the economy; the recovery will be enhanced. We know that majority of our people still rely on micro type of businesses.

“We see them operating in the retail segment of the market. Our banks can still support such initiatives like the small scale and micro businesses. We can rejuvenate the overall economy by  starting from that segment of the economy.

He added, “And from there, we can grow to become small and medium scale enterprises; and everything through some elements of backward and forward integration, would have positive effect and impact on the overall performance of the economy. So, whichever way we look at it, either an economy in a booming session or an economy that is receding, the banking sector still has a role to play either to manage the boom or to bring it back from recession to stability.”

Ajibola added that the planned diversification of the economic base would help to address the forex debacle. He however noted that the Federal Government must also be faithful in the implementation of its programmes on import substitution and export promotion.