Banking Sector Reforms To Ensure Industry Sanity

PHOTO: DR. SHAMSUDEEN USMAN SPEAKING AT A FORUM ON NIGERIA'S VISION 2020 IN LAGOS RECENTLY.

ABUJA March 31, (THEWILL) - Dr. Shamsudeen Usman has justified the reform in the banking sector saying it is the only way to guarantee best practices and restore general confidence in the banking industry.

Usman, a former Minister of Finance, whose re-appointment as federal Minister by Acting President Goodluck Jonathan was confirmed by the Senate on Wednesday, said the reforms are in the best interest of the country.

The Central Bank of Nigeria (CBN) had embarked on series of reforms to check insider fraud and other unwholesome practices in banks and other financial institutions in the country.

The returnee minister who was also Minister of National Planning in the dissolved cabinet said the reform is to ensure proper risk management in banks and the entire financial sector

He stressed that the reform in the sector is needed for the achievement of the long term economic planning required for the achievement of Nigeria’s economic Vision 2020 and the Seven Point Agenda of the present administration.

According to Usman, arrangements have been concluded in his former Ministry to introduce technical templates for long and medium term budgeting systems for the country.

Usman has been an advocate of Medium Term Planning (MTP) strategy, which he insists is the only way to ensure a multi-sectoral macro economic growth balance needed to achieve the needed economic growth in the country.

As part of the reform both chambers of the National Assembly had accelerated the consideration of a bill to establish the Asset Management Company to take care toxic and non-performing loans in banks.

The MTP expert believes it will improve linkages between annual budgeting and medium term considerations such as investment plans, buying capacity, changing spending policies among others within a sustained expenditure envelop.

The planning strategy is also expected to provide political policy decision makers with relevant information on cost implications over time as well as improve targeted allocation to strategic priorities among and within sectors, so as to increase predictability of both policy, funding to assist investment planning and sustained progress.