There is no way I can talk about the Current bane of our economic system without making reference to the Banking sector.
I will say this as a Banking student,the back bone of every economic system is the banking sector…..In a situation whereby the banking sector is crumbling, all other sectors will be inhibited.
My Impression towards this current misfortune in our Country was the sudden implementation of Treasury single account (TSA) Policy.
The TSA policy by short flip;The treasury single account is an account kept by the Federal Government to monitor Government receipts and expenditures. In other to avoid misappropriation of public funds. But nevertheless, the Policy has caused dip of finance in the Banking sector today. I am much more concerned about the faith of the small
business owners who will definitely be in dare need of little capital for proper running of their businesses.
Withdrawal of ministry’s fund from commercial banks will definitely place a high price on the little available for public to borrow from, thereby removing these petty business owners from those who can access commercial banks for loan. This will definitely lead to death of many small scale Enterprises and skyrocket unemployment if there is no
alternative of which I believe government had never been able to provide for. The local businesses are at risk, with this plan in operation.
In Nigeria Today, it is appalling that we Nigerians are compounding to our social economic issues. The Banking sector is an important part of financial system. I said earlier that the crumbling of the banking sector will affects all other sectors.
This therefore suggest that the performance of the Nigerian economy is greatly influence by bank lending. The study recommends that the federal government of Nigeria through the central bank of Nigeria (CBN) should strengthen the banking sector to ensure an improved credit flow to the activity sectors because of its strategic importance in creating and generating growth of the economy.
– Saliu I. Oluwatosin
Student of Banking and Finance, Kogi State University,
Anyigba, Kogi State.
