The Central Bank of Nigeria has said
that it has recovered and returned to customers a total of N5bn
wrongfully taken from depositors by banks operating in the country.
It also said it would focus on the
protection of consumers of products being brought to the market by banks
over the next three years,.
The Deputy Governor, Financial Services,
CBN, Dr. Kingsley Moghalu, told the Senate Committee on Banking,
Insurance and other Financial Institutions on Tuesday, that there had
been a crisis of confidence between banks and their customers regarding
charges on deposits.
He said, “In the next few years, between
now and 2015, we will be focusing on consumer protection. There are
ranges of bank charges that are acceptable.
“As I speak to you, we have recovered from the banks N5bn as wrong charges, which have been returned to Nigerians.”
He said CBN was also focusing on data
integrity from the banks, financial stability, disclosure, transparency,
corporate governance and risk management.
Moghalu said that although some
stability had been achieved as a result of the reforms in the banking
sector, CBN was taking measures to ensure that the gains of the reforms
were not reversed.
He justified a recent circular that put
embargo on further lending to bank debtors, who owed about $5bn, saying
there were indications that financial indiscipline was rearing its ugly
head again.
“They will not be allowed to borrow
until they start paying their debts. This is to ensure that the gains
from the reforms were not reversed,” he said.
Moghalu also explained the economics of
high interest rates, arguing that it was necessary to keep inflation at a
stable rate, while sustaining the value of the naira.
According to him, the reforms are not a
destination, but a process that will continue so as to save the country
from the effects of the global financial crisis.
The committee sought clarifications on
the various intervention funds operated by the CBN, expressing concerns
that the agriculture sector was receiving little of the funds, in spite
of the fact that it was crucial to the national economy.
Moghalu, however, explained that the intervention funds were meant to stimulate the economy and mop up excess liquidity.
