- Presidency, Senate Seek Banking Sector Restructuring
The Presidency and the Senate on Wednesday recommended strategies for the restructuring of the banking sector, with a view to providing friendly environment for investments to thrive.
The Acting President, Prof. Yemi Osibanjo, while speaking at one-day public hearing in Abuja, which was organised by the Senate Committee on Banking, Insurance and Other Financial Institutions, urged the upper chamber of the National Assembly to provide the legal framework that would facilitate credit information sharing between credit bureaux and lenders.
Osinbajo, who was represented by the Senior Special Assistant to the President on Industry, Trade and Investment, Dr. Jumoke Oduwole, stated that repositioning of the credit system through legislation would encourage credit information sharing between the bureaux and lenders such as banks and other financial institutions.
He stressed that this would lead to an increase in the availability of credit and reduction of costs.
Osinbajo noted that to achieve the drive for a favourable business environment for investors, the Presidential Business Environment Council was established by President Muhammadu Buhari in 2016 to help develop a favourable business environment in the country by removing the constraints and restrictions that serve as obstacles to investors.
The council, according to Osinbajo, is being chaired by the Office of the Vice President and has 10 ministers, the Head of Service of the Federation and Central Bank of Nigeria as members.
He requested that the National Assembly to send representatives to the council.
President of the Senate, Bukola Saraki, in his opening address, said the 8th Senate had accorded the review of laws affecting the business environment priority.
“This is in order to give the private sector a lift as the main driver of economic development,” he added.
As a result, Saraki disclosed that the Senate had produced three bills, namely: The Legal Framework for Credit Bureau Services Bill, 2017 (SB 205), the National Payment System Bill 2017 (SB 005), and the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, CAP F34 LFN, 2004 (Amendment) Bill, 2017 (SB181).
Saraki explained that the purpose of these “priority bills” was to open the economic space to attract greater private sector investments, especially to enable small businesses to thrive and create more jobs in a friendly climate.
He said, “The Legal Framework for Credit Bureau Services Bill 2017, one of the priority bills we have listed here, seeks to promote the use of credit information, access to finance, and knowledge of credit bureaux to improve the lending environment in Nigeria.
“This bill adds a very critical scheme that will aid credit risk management and reduce significantly the incidence of non-performing loan portfolio in the system.”