By Omodele Adigun and Henry Uche
Following Central Bank of Nigeria’s restriction on foreign banks transacting certain ‘banking businesses’ in the country, a university don, Dr. Ngozi Ben Anuonye, lecturer (Accountant) Crawford University, Department of Accounting, has urged the apex bank to come clean on the issue.
According to her, there are some undisclosed reasons why the apex bank is coming up with this restriction.
“It’s also pertinent to note that the CBN knows very well how foreign direct investments, including investments on banking services can stimulate our ailing economy.
Again, we should also note that the CBN is not against investments by foreign financial institutions, but only trying to curb the over-bearance of foreign interventions on Nigeria’s financial system;financial manipulations especially by foreign financial institutions will jeopardize the so much needed economic recovery for the country”, she said.
Also speaking Chidi Otumba, a financial consultant and Managing Consultant/CEO, TREASUREHALL Consulting believes that Nigerian banks need the competition from foreign banks.
“In my opinion, Nigerian institutions generally are known to perform below their full capability in the absence of competition. Nigerian banking system has been characterised by unwarranted and excessive charging of customers, slow pace of service delivery, network down times, long queues (characterised by lower service rate as against faster arrival rate of customers), considerably insecure internet-based transactions, etc. On October 12, 2022 the Central Bank of Nigeria (CBN) released Exposure Draft on the Guidelines for The Regulation of Representative Offices of Foreign Banks in Nigeria vide its Circular FPR/DIR/PUB/CIR/001/059.