In this exclusive
interview with the Editor of BrandInfo, OLUWAGBENGA BANKOLE at the just
concluded 4th edition of the annual Retail Leaders Conference in Lagos, the
President/Chairman of Council, Chartered Institute of Bankers of Nigeria (CIBN)
Prof. Segun Ajibola speaks on why we should consume what we produce and produce
what we consume in Nigeria, proliferation of shopping malls in the country and
other typical issues. Excerpt !
You made some thought
provoking statement while delivering your paper. One of the things you said was
that we should consume what we produce and produce what we consume in Nigeria.
Kindly throw more light on this?
It is a mentality problem. We grew up accepting some elements
of inferiority in almost every aspect of our lives which cut across our
consumption pattern. We believe that anything that is made in Nigeria is
inferior and anything that is imported is superior. However, experience has
proved that it is not correct. We have some made in Nigeria consumer product
that in every sense superior to what we import into this country. When we
import, either direct or indirectly, officially or unofficially, it is a drain
on our foreign exchange reserve. If we conserve that and we now emphasise on
consumption of those thing we make in Nigeria, either consumer durables or
consumer nondurable, we will save foreign exchange. We can divert such saving
into expanding our production base. It will generate employments, add to our
Gross Domestic Product (GDP) and provide some elements of social security for
our people through what is actually refer to as multiplier effect. It would
have so many effects on the economy of the country. One particular line of
business development would give rise to the development of some other lines of
business that are tied to that major line of business. That is the multiplier effect.
These are the things we can gain if we shift our paradigms and embrace the
culture of consuming what we produce and producing what we consume as a nation.
That is what we are canvassing here today.
In your speech you
also clamour for the traditional form of retailing. We have seen the
proliferation of super malls which is threatening the proliferation of our
traditional retail outlets. What is your position on this?
Because of the growing cosmopolitan nature of our cities,
level of education and illiteracy of our people, we cannot run away from
embracing shopping malls or having the kind of supermarket we have today. However,
that should not be at the expense of our traditional market system. We can
still make do with the likes of Mile 12 market, Oyingbo market, etc. where I am
sure I can buy fresh agricultural commodities. Rather than government harassing
our traditional marketers, they should look for ways of developing those
markets. Government should encourage the operators of those markets by
providing infrastructurer facilities. It is so pathetic that those traditional
markets are being destroyed or relocated by government. For me it is an assault
on our traditional culture. I believe we can do better by looking for ways of
preserving that kind of market system which is what we grew up with as part of
our tradition and culture.
ALSO READ: High interest rate, major killer of Nigeria retail sector- CIBN President
http://www.brandinfo.com.ng/2017/06/high-interest-rate-major-killer-of.html
Let us look at the
current position of the banking sector. CBN came under your hammer today when
you said they don’t take responsibility for the failure of intervention funds. Can
you throw more light on this?
That is the question of who carry the risk of loss arising
from such lending. If you are lending to SMEs of retail operators, and for
whatever reason that loan becomes tortured, who bear the risk of the loss?
Banks are commercial entities. It is a thing of joy that all stakeholders
admitted that this is an issue at the recent stakeholders engagement in the
National Assembly. CBN and commercial banks admit that it is an issue including
National Assembly itself. Everybody is now looking at the best way to approach
the management of the risk occasion by lending to those sectors. Will it be
shared responsibilities on the part of the regulator and operators? Will it be
through some forms of concessions? I think is a work in progress, but
definitely it is a problem in our environment today. Banks are running away from
intervention fund because they don’t want to carry the 100 percent risk of
loss. You can appreciate or sympathise with them because they are struggling to
preserve the shareholders’ funds. The retail sector of our national economy is
yearning for funding and support. There must be solution coming from all
stakeholders.
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