Way back in 1988 when the Gen. Ibrahim Badamasi Babangida led administration in Nigeria liberalised the economy, competition became the order of the day and it was thought of as a healthy development if the nation was to develop.
Nigeria today ranks one of the third world’s largest growing economy and a veritable market, with our projected population put at 120 million people and a people who have high taste for imported goods. The vibrancy of an economy is to a large extent measured by the strength and positive role being played by its banks and financial institutions so much so that nations make sure that the banking sector remains vibrant, strong and alive to its responsibility in the economy.
It is on record that the liberalisation on the sector equally introduces the much needed competition and in turn provides efficiency, which has harvested mixed outcome. We saw the emergence of so many commercial banks and merchant banks that engaged themselves in poaching qualified personnel from the old generation banks and as if that was not enough they enticed them with fat salaries and allowances.
It is noteworthy here that some of this banks collapsed sooner than they were established at least. At this juncture. I want to ask, is it wearing a designer suit with a designer tie and shoe, giving yourself a clean shave that makes you a successful managing director? By this singular act, most of the banks have now started devising ways and means of wooing customers to their banks by putting in place various innovative means while some started introducing unwholesome practices.
At the last count Nigerian authorities have given licence to about 80 or so banks and funny enough some of these banks have only one branch in Lagos, Kano, Port Harcourt and Abuja the federal Capital Territory. One practice Nigerian banks are guilty of is by employing young girls and sending them like hounds to look for customers. Our banks look inwards with a view to meeting challenges facing the sector, I was surprised when a group of bankers gathered together and invited a miracle performing pastor to pray for divine intervention in the banking sector of the economy. I wonder if that is the solution to the very things that go on in the sector. What with insider convinance to tamper with depositors’ account and hasty clearances of dubious cheques issued by 419ners?
The N25 billion naira capital base shouldn’t be seen as punitive measure if the smallest bank in Malaysia has up to that amount and ABSA of South Africa having in its vaults enough money than all Nigerian banks put together. By the time the squeeze is over we shall preach for a moral and spiritual reawakening in the banking sector. Meanwhile, the executives and senior staff of those banks that are in the habit of harassing innocent ladies under them should stop doing so.
Shuwa II-General Secretary
National Union of Road Transport Workers,
National headquarters, Abuja.
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