Financial system pivotal to Africa’s huge potential —CBN deputy gov

The financial system will be pivotal in the realisation of Africa’s huge potential just like it has in charting the economic recovery path from COVID 19.

The Deputy Governor, Financial System Stability, Central Bank of Nigeria, Mrs. Aishah N. Ahmad made this observation in Lagos over the weekend, at the 40th anniversary summit of the Financial Institutions Training Centre (FITC).

Ahmad also said that there is significant room for the continent to leverage the bright spots, particularly the digital transformation and technological innovation being witnessed in the economy and financial ecosystem, to foster more prosperity and reduce income inequality.

This innovation, according to her, has intensified growth in the size and significance of banks and other financial institutions, created new opportunities for new entrants and increased integration with global finance and capital markets.

According to Ahmad, the African Continental Free Trade Area (AfCFTA) and its focus on intra-Africa trade, the pilot of the Pan-African Payments and Settlement System (PAPSS) and Africa’s positioning to benefit from the increased funding and opportunities as part of the outcomes of the climate change conference (COP 26), are just a few critical drivers that should also fuel growth in the near to medium term.

These significant developments have put conversations on Africa’s potential back on the front burner, she added, stressing that Africa, a diverse continent of 54 countries, boasting one of the youngest populations around the world and with thriving economies, rich with enormous and diverse talent, material, and natural resources should be well positioned to deliver prosperity, create wealth and higher living standards for its over one billion citizens.

“However, we are yet to fully realise and harness this potential. The problems and idiosyncratic challenges have been well documented,” she stated.

Speaking on the theme: ‘Towards a shared prosperity in Africa; The role of the financial system,’  Ahmad said the FITC  team had chosen a very topical and strategic theme for the anniversary summit, while appreciating speakers like Mr Kuben Naidoo, Deputy Governor, South African Reserve Bank (SARB) and CEO of the Prudential Authority of SARB.

According to Ahmad, for over 40 years, FITC had provided knowledge and capacity building solutions for the highly dynamic Nigerian banking and financial industry.

“In many ways the industry which the Centre was designed to support has significantly evolved – its size and significance to the Nigerian economy, depth and breadth of financial instruments, number and variety of participants, products and business models, and perhaps most importantly, the quality of its talent – an area where FITC has continued to be prominent and relevant,” she stated.

The Centre, according to the deputy governor, has always been a pivotal part of the Nigerian financial industry; in fact, the story of Nigerian banking cannot be told without FITC.

“Through the years, FITC has meant different things to different people.

“For some, it was a place to study for professional exams – I often recall with nostalgia my early days as a young banker studying for my Masters at the FITC library in Apapa, Lagos, others have leveraged FITC’s many research publications over the years – its legendary Journal of Banking and Finance and other industry specific reports have been important input for the academia and practitioners alike.

“FITC’s flagship Bank Directors course and continuous education programmes have undoubtedly elevated the leadership and governance capacity in the banking industry,” Ahmad emphasised.

Over the years FITC has continually sought accreditations and leveraged local and international partnerships to align its knowledge solutions to support the evolving needs of the industry – from fraud and banking operations, credit risk management, customer service, to employee engagement, board leadership and governance – introduction of tailored consulting solutions, expanding its clientele regionally to cover the full gamut of financial instructions and transforming from physical course delivery to deploying technology-driven learning management solutions and virtual convening support for key stakeholders in the regulatory space.

Managing Director/Chief Executive Officer, FITC, Mrs. Chizor Malize appreciated attendees, especially the panelists at the summit including; Mr Tunde Hassan Odukale, MD/CEO Leadway Assurance; Mrs Ireti Samuel-Ogbu, MD/CEO Citibank Nigeria; Mr Segun Ogunsanya, MD Airtel Africa; Mr Uzoma Dozie, MD Sparkle and the moderator, Mrs Folakemi Fatogbe, former director at the CBN and CEO The Derisking Lab.