- They’re fraudulent and wasteful, analysts allege
- We’re cash-strapped, says team
Economic experts have called for a probe of the team handling the Federal Government’s Financial System Strategy for Year 2020 over alleged non-performance and wasteful spending in the last 10 years.
Some of the experts alleged that in spite of the collection of a huge amount out of the over N190billion budgeted for the team to ensure Nigeria is among the top 20 economies by year 2020, the largest black nation is still far away from attaining its goal.
Also, the aggrieved analysts have called for a probe of the over N80 million spent on capacity building programme by the team, which claimed that facilitators were brought in from the United Kingdom. To them, spending that much and inviting facilitators from the UK is fraudulent and a waste of resources.
The experts’ move indicates a vote of no confidence on the management of the initiative.
2020, Central Bank of Nigeria, Mr. Mohammed Suleiman, for more financial support from stakeholders in the country to help the team to meet the 2020 deadline.
FSS 2020 is a comprehensive strategy aimed at repositioning the Nigerian financial system for domestic and external recognition; to enable it to compete globally and attract foreign investments for growth and development.
Its objectives, basically, are to transform Nigeria into a financial hub for Africa by 2020; to position Nigerian banks among the best 100 in the world by 2015, and to make Nigerian financial institutions competitive in all aspects of investments and credit granting services by year 2020.
In other words, the initiative is expected to be the driver and catalyst that will lead to full diversification of the economy and gear the system towards world class efficiency and relative safety by that magic year. The key drivers of the proposal are credit market, Small Medium Enterprise financing, pension, mortgage market, capital market, insurance as well as money and foreign exchange markets.
Meanwhile, the experts have threatened to sue the government if it fails to take appropriate measures towards probing the activities of the team.
The Deputy National Coordinator, Institute of Chartered Economists of Nigeria, Prof. Ganiyu Oladipo, told The Point that it appeared that the CBN, which was supposed to supervise the activities of the team, had failed in its oversight functions.
He explained that the ideal thing for the government was to merge the FSS 2020 team and the economic team, picking the best brains to pilot the economic affairs of the country.
Oladipo said, “Unfortunately, everything has been politicised in Nigeria. There is an element of politics in everything we do in this country. Those that are not qualified to be part of the team were invited. And that is what is affecting the economy of this nation. Most of the people controlling Nigeria’s economy are unqualified. ICEN has written the government several times asking it to engage thorough bred economists and see if Nigeria will not be out of recession in no time.
“We are talking about professionalism here; we see it as a challenge because this is our field. But the whole thing has become a party affiliation, and ‘paddy-paddy’ appointment. Such development is killing the economy. Sadly, even if the government comes to terms with the experts, government will frustrate their efforts by imposing an impossible condition on them. At a point, you just get frustrated and decide to leave the whole thing.
“We challenge the government to follow due process in this country; let us do things the way it should be done. Let experts handle things in their fields of professionalism. All we need is positive result.”
A financial economist and Dean Faculty of Business Administration, University of Uyo, Prof. Leo Ukpong, alleged that the funds invested in the initiative had not been judiciously managed.
Ukpong demanded that the entire team should be changed, because much of the money allocated to them had been wasted.
“The corruption in the system is so alarming that anything can happen. I can’t really say it (FSS 2020) should be scrapped because we still need it as a guide. But government must probe the allocations given to the team. How can a team spend over N80 million on facilitators and one capacity building programme? It is ridiculous,” he said.
A fellow of the Chartered Institute of Bankers of Nigeria, Dr. Alaba Olusemore, explained that some of its major plans were financial inclusion, financial literacy, and financial education. That means trying to get the grassroots into the financial system.
On the commitment of the team towards achieving the goals, he said, “I think it all depends on their passion for the programme. When former governor of CBN, Sanusi Lamido, was there, he was so passionate about the programme. I can’t tell about the present administration, but I observe the passion has dropped and can also affect the supervisory role the regulatory agency is expected to play.”
We’re cash-strapped- FSS 2020
However, the team led by Suleiman argued that it had done its best towards bridging the gap between Nigeria and leading global economies, but its operations had been hampered by lack of adequate finance.
Following the 50 per cent slash of the CBN budget by the government in 2016, the FSS 2020 boss told The Point that it had restrategised by calling for support from stakeholders.
Though, he failed to disclose the amount received by the CBN, he insisted, “Funding has been our major constraint. Our programme since its inception had always been bankrolled single handedly by the CBN. The CBN is beginning to get weary a little bit because its budget this year was reduced by 50 per cent and that is majorly affecting some of our capabilities to implement some of our strategic objectives.
“We need to agree on the funding approach, we need to have a rethink and get the support of all implementing institutions. The FSS 2020 is not a CBN project but a financial system project; all financial system players have to take ownership of the project and be willing to support it.”
Head, Financial Markets, FSS 2020 Secretariat, CBN, Dr. Charles Ohamara, said that the concept was geared towards ensuring that all the big companies currently operating in Nigeria, but not quoted on the Nigerian Stock Exchange, were encouraged to list in the market to ensure that shareholders benefit from them.
Also, the Head of the Programme Management Office of the FSS 2020, Mr. Oluwatoyin Jokosenumi, said that the programme had achieved about 30 per cent of the 750 projects initiated at its take-off. Enumerating other challenges facing the programme, he disclosed that inadequate financial skills development, particularly in the capital market, lack of investable funds for long-term financial products, non-existence of listing rules for special purpose vehicles, increasing cost of transactions and operations and weak risk management had been the bane of the FSS.
