CBN urges media collaboration in educating depositors

The Central Bank of Nigeria (CBN), has urged media practitioners to collaborate with financial regulators in the country to educate depositors on financial literacy and inclusion.

The Head, Financial Inclusion Secretariat, CBN, Mrs Temitope Akin-Fadeyi said this at a workshop for Business Editors and Finance Correspondents Association of Nigeria (FICAN) on Tuesday in Benin.

The workshop was organised by the Nigeria Deposit Insurance Corporation (NDIC).

Akin-Fadeyi, represented by Mr Joseph Attah, a member of the Financial Inclusion Secretariat, CBN, said educating depositors was a collective responsibility of all.

According to her, there is a growing perception by Nigerians that it is the sole responsibility of the regulators to educate depositors on financial inclusion.

She said it was important for media practitioners to fully understand the concept of financial inclusion.

Akin-Fadeyi, therefore, urged the media to partner with the regulators to properly educate Nigerians to ensure increased participation of financial inclusion in the country.

On provision of income for small business owners, Akin-Fadeyi said the CBN was already addressing the issue.

“Those without income are already benefiting from CBN’s Conditional Cash Transfer scheme.

“We are doing a lot in CBN, we have programmes where unemployed Nigerians doing business can apply for loans.

“We cannot do everything, so all stakeholders are enjoined to collaborate to ensure that the issue of income is tackled.’’

On recapitalisation of Microfinance Banks (MFBs) in the country, she said the banks had been given enough time to recapitalise.

Our correspondent reports that CBN had in a circular on Oct. 22, directed MFBs to recapitalise by April 1, 2020.

MFBs is expected to have a minimum of N200 million capital requirement, states owned MFBs will need one billion naira and National MFBs will require five billion naira.

In his contribution, Mr Kingsley Nwaigwe, the Deputy Director, Research Policy and International Relations, NDIC, said the Corporation was doing everything possible to build depositors’ confidence in the country.

“Recently, about 154 MFBs and six financial institutions were closed.

“And within three weeks, NDIC was able to pay depositors of the closed institutions and this is one of the things that can help build confidence of depositors in the country.’’

In his remarks, Mr Peter Aghaowa, who represented the Director-General of Pension Commission (PENCOM), Mrs Aisha Dahir-Umar, stressed the need for depositors to have trust in the financial sector.

He assured of PENCOM’s commitment to ensure pensioners’ trust in the sector through strict pension regime.