In a bid to boost liquidity in the Nigeria’s financial services sector, the financial services regulators including Federal Ministries, Departments and Agencies are to invest N1.54 trillion into the sector in the next five years.
The investment is expected to bring optimal yield in all components of the nation’s balance sheet to unlock the liquidity required to support the growth and development of the economy.
According to the Federal Government National Development Plan (NDP) 2021 – 2025), the government is set to increase the liquidity thresholds in each firms of the financial system to a level that will aid the growth and development of the country.
The Federal Government stated that by 2025, it expects the total value of the payments system to be worth 500% of the GDP, while the total private sector credit as a percentage of the GDP is expected to rise from 13.21% to 25%.
The document however stated that the investment of these government institutions will be leveraged to support the private sector to realize the goals of the NDP.
The Ministry of Finance, Budget and National Planning, Ministry of Industry, Trade and Investment, Infrastructure Concession Regulatory Commission, Central Bank of Nigeria, Securities and Exchange Commission, National Insurance Commission, National Pension Commission, and other major commission have been tasked with raising the amount to raise liquidity thresholds of the financial sector over the five-year period.
The NDP further stated that achieving the stated objectives for the Financial sector requires huge investments from relevant MDAs and industry players. In addition, the primary regulators will contribute to such investments.
These agencies include the Central Bank of Nigeria, Securities and Exchange Commission, National Insurance Commission, and the National Pension Commission. Operators in the financial sector will not be left out of the investment to achieve the goal of the plan.
The NDP document further showed that the nation will continue to leverage on the support of its development partners, including the World Bank, International Monetary Funds, African Development Bank, African Finance Corporation and International Finance Corporation.
