- Say banking world gradually shifting to PoS business
- CBN new capital requirement will boost financial inclusion — Cardoso
- Naira may weaken to N1, 993/$1 – Report
Some customers have accused first generation banks in Anambra State of hoarding cash to maximise profits during the yuletide season.
They said the attitude has been boosting the business of Point of Sales operations in the metropolis.
According to them, some banks delay issuance of Automated Teller Machines Cards for customers to dissuade and prevent them from accessing withdrawals from ATM points.
Some of those who raised the allegations contended that some traditional banks have been hoarding cash in order to have excess cash during the Christmas and New Year seasons.
They said some of the bank workers make money in provision of cash for PoS business rather than making enough available at ATM terminals in their banks.
A customer to one of the commercial banks in Anambra, Jude Udegbe, claimed that banks, especially those situated in Nnewi, one of the commercial nerve centres in the state and its environs, have been subjecting customers to anguish in accessing their savings.
Udegbe, the Chairman of the Anambra State Motorcycle Transport Welfare Association, lamented that real banking transactions have shifted to POS operators in the area.
He narrated how challenging it has been for customers to withdraw up to N100, 000 at once from any bank within the industrial community.
He added that banks now prefer to send large sums of money to POS operators in exchange for hefty commissions.
Consequently, POS operators charge their customers exorbitant fees.
Udegbe alleged further that this trend has exacerbated the economic hardship faced by the masses.
According to him, “Even traders now prefer dealing with POS operators, striking faster deals, rather than using banks.”
“The banks have started hoarding available cash, as they did last year. Meanwhile, POS operators are maximizing profits at their customers’ expense,” he further alleged.
He called on the state government and the Central Bank of Nigeria to intervene, maintaining that the situation has worsened the difficulties that people are already battling.
Another customer who disclosed his frustration at withdrawing sufficient cash at ATM points, lamented that the banking world is gradually shifting to PoS business.
The customer, who identified himself as Thomas, said, “We the business people in Anambra State are not happy with most of these commercial banks. They are making the traditional banking system go into oblivion. Why can’t we get the amounts of cash we need in banks? The annoying thing to us is that this same cash is available with PoS operators.
“If you check very well, people are no longer taking their money to save in banks, they now prefer to give to PoS operators rather than save it in banks. This won’t help our country and I am calling on those concerned to do something about this,” he said.
CBN new capital requirement will boost financial inclusion — Cardoso
Meanwhile, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, has stated that the new capital requirement for banks operating in the country will enhance their capacity to drive financial inclusion.
Cardoso made this statement on Tuesday at the second International Financial Inclusion Conference held in Lagos.
He said, “In line with its efforts to deepen financial inclusion, the Central Bank of Nigeria recently introduced new minimum capital requirements for banks. This strategic move ensures that banks are well-capitalised, enabling them to take on greater risk, particularly in underserved markets.
“With a stronger capital base, banks can provide more loans and financial products to MSMEs, rural communities, and other vulnerable segments that have previously struggled to access formal financial services.
“This policy not only strengthens financial stability but also serves as a catalyst for inclusive growth. By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity. Furthermore, with increased capital, banks can invest in technology and innovation crucial for driving digital financial services such as mobile money and agent banking.”
The apex bank governor added that these technologies are key to breaking down geographic and economic barriers, bringing financial services to remote areas.
“Financial inclusion has the potential to unlock significant economic growth, particularly through the empowerment of small and medium-sized enterprises (SMEs), women, and other vulnerable segments of the population. SMEs are responsible for over 80 per cent of employment in Nigeria, yet many struggle to access the credit needed for expansion.
“Financial inclusion for SMEs is essential to unlocking the full potential of this sector, and the Nigerian government remains committed to supporting these enterprises. Similarly, women play a critical role in driving inclusive growth. Research shows that when women are financially empowered, they reinvest in their families and communities, creating broader social and economic benefits. Let’s clap for the women.
“Yet women in Nigeria are disproportionately excluded from the formal financial system. The Central Bank of Nigeria, recognising this, has made significant strides in promoting financial inclusion for women and youth, particularly through frameworks aimed at closing gender gaps and regulatory support for digital platforms that offer easier access to financial services for these vulnerable groups,” he asserted.
The CBN governor further affirmed that the adoption of digital payment channels, leveraging mobile technology, remains one of the most transformative tools for financial inclusion.
According to Enhancing Financial Innovation and Access, an organisation that promotes financial inclusion, Nigeria’s financially included population rose from 68 per cent in 2020 to 74 per cent in 2023.
Naira may weaken to N1, 993/$1 – Report
However, the naira is forecasted to depreciate to N1, 993 against the United States dollar by 2028, posing a significant challenge to Nigeria’s pharmaceutical industry, particularly in importing essential medical devices, a new report by BMI, a Fitch Solutions subsidiary, has revealed.
In the report titled “Weak Naira and Structural Challenges to Constrain Nigeria’s Medical Devices Market Growth”, BMI projected that despite an anticipated rebound in the economy, Nigeria’s medical devices sector will face operational and demand challenges in the near term.
The report noted that Nigeria relies on imports for over 95 per cent of its medical devices, making it vulnerable to fluctuations in exchange rates.
“Continued weakness of the naira will increase medical device import costs and erode consumer purchasing power. Similar to other markets in sub-Saharan Africa, Nigeria heavily relies on medical device imports, with reliance of over 95 per cent.
“We expect that the naira will end 2028 at N1, 993/$ from N306/$ in 2018. As the naira weakens, the cost of importing medical devices will continually increase, eroding both the health system and patient purchasing power especially to invest in essential medical technologies given underfunding of the public health sector.
“This would particularly affect high-cost demand for devices such as diagnostics, orthopedics and dental products. On the export front, a weaker naira will enhance the competitiveness of locally manufactured medical devices, fostering growth in the sector,” the report stated.
While a weaker naira could enhance the competitiveness of locally manufactured medical devices, BMI highlighted persistent barriers to local production.
These include a scarcity of skilled labour, limited access to modern technology, and inadequate infrastructure, which continue to undermine manufacturing efforts despite government incentives.
The administration of President Bola Tinubu has implemented measures aimed at easing these pressures.
In June 2024, an executive order was issued to reduce medical service costs by eliminating tariffs, excise duties, and Value Added Tax on specific machinery, equipment, and raw materials, with the goal of lowering local production costs.
However, BMI observed that the medical devices market would continue to face significant challenges in the short term.
The report forecasted that Nigeria’s medical devices market could grow to a value of N171.1bn (£344.7m) by 2028, supported by a large population, an increasing focus on universal health coverage, and the double burden of chronic and communicable diseases.
Nigeria’s economy is expected to recover in 2025, with a growth rate of 3.0 per cent predicted for 2024, compared to 2.9 per cent recorded in 2023.
However, persistent issues such as high inflation, tighter monetary policies, and weak foreign direct investment could weigh on the growth of the medical devices sector.
The naira traded at N1, 681.42 per dollar on Monday, November 11, 2024, reflecting a marginal decline of 0.15 per cent from Friday’s closing rate of N1, 678.87, as recorded on November 8, 2024.
FX turnover on the official market dropped significantly by 66.41 per cent, from $1.4bn on Friday to $471.5m on Monday, indicating lower market activity.
During the period under review, the naira reached a high of N1, 695 and a low of N1, 631.
