Fuel Subsidy Removal, Naira Float Major Hurdles for Nigerian Economy – CIBN

The Chartered Institute of Bankers of Nigeria (CIBN) has expressed concerns about the negative effects of certain government policies, including the removal of the fuel subsidy and the floating of the Naira, on both the banking sector and the Nigerian economy as a whole.

EKO HOT BLOG reports that this statement was made during the 2024 end-of-year event of the CIBN, Abia State branch, held in Umuahia on Saturday. The address was delivered by Adiele Kelechi, the chairman of the organizing committee.

The bankers highlighted the challenges faced in 2024, particularly the migration to new information technology (IT) systems by many banks, which they described as another significant hurdle. They also pointed to high inflation and the rise in the Monetary Policy Rate (MPR), which were consequences of the fuel subsidy removal and the floating of the Naira.

Despite these difficulties, CIBN members noted that bankers have remained at the forefront of navigating the country’s economic challenges and emphasized that the Nigerian economy is beginning to show signs of stability as a result of the Federal Government’s economic policies.

Former Director of Communications at the Central Bank of Nigeria (CBN), Isaac Okoroafor, who was honored for his contributions to Nigeria’s economy and to the Institute, praised bankers for their role as the backbone of a nation’s economic stability.

In his keynote address, Professor Udochukwu Ogbonna, Chairman of the Abia State Board of Internal Revenue, advised the CBN to reduce the cash reserve ratio (CRR) to allow banks to offer more loans to customers. Ogbonna pointed out that Nigeria’s CRR is currently the highest in the world at 45 percent, suggesting that banks should also conduct thorough credit analysis and appraisal before extending loans outside of monetary policy guidelines.

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