End of universal banking 'will help Nigeria's financial sector'

Aug 26, 2010

The Central Bank of Nigeria (CBN) Governor has assured financial institutions they will benefit from the end of universal banking in the country.

According to Business Day, Sanusi Lamido Sanusi stated at the commissioning of a new office complex for the Finance Institutions Training Centre that firms will see business across the pensions, insurance, investment banking, asset management and private equity sectors increase.

And his comments were supported by President of the National Association of Microfinance Bank Mathais Omeh, who noted growth will accelerate as a result of universal banking coming to an end.

Credit availability in the private sector seems to have already jumped, with the news source recently reporting the Central Bank as saying lending by banks rose for the first time in two years during the second quarter of 2010.

The CBN has also announced its intention to release the operational status of over 900 microfinance banks operating in the country, a move analysts believe will help meet the aim of providing financial support to the population.