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Economic downturn forces Nigerians to abandon 5.7m bank accounts

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Data from the Nigerian Interbank Settlement System (NIBSS) Electronic-payment Fact Sheet for 2021 has indicated that Nigerians abandoned 5.7 million bank accounts in 2021 as the number of inactive bank accounts rose 11 per cent to 57.9 million during the year from 52.2 million in 2020.

The Bank Customers Association of Nigeria (BCAN) has attributed the development to the difficulties in the economic environment.

However, as more bank accounts were opened during the period, the number of active bank accounts rose 16 per cent to 133.5 million in 2021 from 114.5 million in 2020.

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Meanwhile the number of bank customers grew by 18.4 million or 18 per cent to 122.3 million in 2021 from 103.9 million in 2020.

The data also showed that the number of current accounts rose by 14 per cent to 49.8 million in 2021 from 43.6 million in 2020, while the number of savings accounts increased by 7.8 per cent to 120.4 million in 2021 from 111.7 million in 2020.

Commenting on the development, the President BCAN, Dr. Uju Ogubunka, listed the drivers of inactive accounts in the banks to include the increase in the prices of goods and services, low income accompanied by low purchasing power of Nigerians, increasing rate of unemployment, immigration among other things.

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He noted that if the economy fails to recover the banks should expect more inactive bank accounts by end of 2022 adding that such development would hinder the country in achieving its financial inclusion target.

He stated: “The rise in inactive bank accounts is a product of what is happening in the economy. You don’t run a bank account when you don’t have income. The rate of unemployment has increased making it impossible for some people to fund their bank accounts. Inflation rate is also rising which is also a factor making people spend more without having anything left to save or even send.

“If the income capacity of people increases and they have surplus after settling expenses, then they can go to the bank.

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‘‘If there is no improvement in the source of income of people and the economy we should expect more inactive bank accounts by the end of 2022. If such occurs, it will drag back the financial inclusion goal.”

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Benue IDPs block highway, demand return to ancestral homes

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Vehicular movement along the Yelwata axis of the Benue–Nasarawa highway was brought to a standstill on Wednesday as Internally Displaced Persons, IDPs, staged a protest, demanding immediate return to their ancestral homes.

The protesters, believed to be victims of persistent attacks by suspected herdsmen, blocked both lanes of the busy highway for several hours, chanting “We want to go back home”.

The protest caused disruption, leaving hundreds of motorists and passengers stranded.

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Eyewitnesses said the displaced persons, many of whom have spent years in overcrowded IDP camps, are expressing deep frustration over the government’s delay in restoring security to their communities.

“We have suffered enough. We want to return to our homes and farms,” one of the protesters told reporters at the scene.

Security personnel were reportedly deployed to monitor the situation and prevent any escalation, though tensions remained high as of press time.

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Efforts to reach the Benue State Emergency Management Agency, SEMA, and other relevant authorities for comment were unsuccessful.

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NNPCL reveals decision not to sell Port Harcourt refinery

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The Nigerian National Petroleum Company Limited, NNPCL has officially decided not to sell the Port Harcourt Refining Company.

NNPCL has, instead said it is committed to conducting an extensive rehabilitation of the facility and ensuring its continued operation.

During a company-wide town hall meeting held at the NNPC Towers in Abuja, Bayo Ojulari, the Group Chief Executive Officer of NNPC Ltd, announced the decision regarding the future of the nation’s most significant state-owned refining asset, putting an end to weeks of speculation.

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A statement by NNPCL reads, “The Nigerian National Petroleum Company Limited has officially ruled out the sale of the Port Harcourt Refining Company, reaffirming its commitment to completing high-grade rehabilitation and retention of the plant.

“The ongoing review indicates that the earlier decision to operate the Port Harcourt refinery, before full completion of its rehabilitation, was ill-informed and subcommercial.

”Although progress is being made on all three, the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery.

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”Thus, selling is highly unlikely as it would lead to further value erosion.”

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Tinubu appoints Olumode Adeyemi as Federal Fire Service boss

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President Bola Tinubu has approved the appointment of Adeyemi Olumode, as the new Federal Fire Service, FFS, Controller-General.

The appointment was announced on Wednesday on behalf of the Federal Government by retired Maj.-Gen Abdulmalik Jubril, Secretary of the Civil, Defence, Correctional, Fire and Immigration Services Board, CDCFIB.

Jubril said the appointment followed the retirement of the current Controller-General, Abdulganiyu Jaji, on August 13.

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Jaji is retiring upon attaining the age of 60 by August 13.

Jibril further disclosed said that Adeyemi Olumode is qualified for the position, having attended and passed all mandatory in-service training, Command courses as well as other courses within and outside the country.

“He brings a wealth of experience to his new role, having transferred his service from the FCT Fire Service to the Federal Fire Service and grown to the rank of DCG in the Human Resource Directorate of the Service Headquarters.

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“He has served in various capacities and is equally a member/fellow of the following professional associations including Association of National Accountants of Nigeria, ANAN, Institute of Corporate Administration of Nigeria, Institute of Public Administration of Nigeria and Chartered Institute of Treasury Management of Nigeria.”

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