*Advocates 15% CRR

By Peter Egwuatu

  The National Co-ordinator, Independent Shareholders Association of Nigeria (ISAN) Prince (Dr) Anthony Omojola, has said that Nigerians should expect higher inflation in 2022 as the country moves into an election period.

Speaking to financial Vanguard in Lagos, Omojola stated: “All things being equal this year has been better than last year (2020) and it is my expectation and prayer that next year will be better than the outgoing year.

“But as is widely known, during election years there is normally more money in circulation and if it is not well managed it could lead to ardent inflation which is inimical to the survival of the poor. Hence I will call on our economic managers to brace up for this in the overall interest of the citizens.”

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While commenting on the Central Bank of Nigeria, CBN, activities to move the economy forward, he said: “We all know that the CBN has been doing a lot to kick-start the economy after the ravages caused by the COVID-19 pandemic through several interventions which have been laudable.

“In fact their efforts are to impact various aspects of the economy. “The only advice I can give to them is not to be too direct in these interventions. Rather, they should empower the banks further to carry out these functions.

“Iam not saying that these things are not been done by involving the banks; but they should do more in empowering the banks to do it.

“This will help us as a nation in several ways by strengthening our system as well as the operators to be truly accountable, functional and responsible, because it is the banks that know the customers and are in a better position to collect loans made out to them.”

While commenting on the advertorials in the papers from ISAN over CBN Cash Reserve Ratio, CRR, policy, he said:  “The CRR ratio is getting too high and is restricting banks from having enough cash reserves for their transactions.

“When CBN forces banks to reserve a total of 27.5% of their total cash it is too high. Last year it was 22% and this year it was increased.

“This is just too bad and too high. We are saying reduce it to 15% so that banks will have funds to lend to the real sector of the economy and other customers.

“We are shouting now because if no one talks the apex bank may even decide to increase further in the coming year without realizing that our banks are being unintentionally weakened to the detriment of the economy.

“Besides I don’t want to go on and tell you about the billions that our banks are paying to AMCON and the taxes etc that they have to bear to the detriment of we, the shareholders. This is because at the end of the day it is the investors in these banks that bear the brunt of it all.”

On how the Nigerian capital market fared in 2021, he said:    “I will say we did well. You could see Nigerian Exchange Limited, NGX, trying to assert themselves with more training for every segment involved in the capital market.

“That was good in-deed. And some companies like MTN Nigeria have taped a great opportunity to invite more Nigerians to participate in their ownership within the year.

“We hope that NNPC which is already unbundled will next year, 2022, follow the example of MTN Nigeria by quoting on the stock exchange.

“Another growing area of the market is private sector bond market and the debt capital market as championed by FDMQ, which I may describe as the fastest growing Exchange.

“And I hope the operators will be more sincere and accountable so that they do not fail investors and others.”

Vanguard News Nigeria