The President/Chairman of Council, Chartered Institute of
Bankers of Nigeria (CIBN) Prof. Segun Ajibola has identified high interest rate
as the major killer of the Nigeria retail sector.
Speaking at the 4th edition of the annual Retail Leaders
Conference in Lagos yesterday on the topic “Enhancing Retail: Bank Synergy for
Greater Value Maximisation”, Ajibola said that the current interest rate regime
in the country is not in supportive of the growth of the retail sector adding
that banks now lend at the rate between 26 to 28 percent.
He urged the federal government to look into this issue and
find a lasting solution that will benefit both the retail sector and the banks.
According to him, the concept of retailing started through
street hacking, saying that street trading promotes retailing in Nigeria.
Nigeria, according to him is now transiting from traditional
retail setting to a mega malls with South Africa Shoprite setting the pace.
Ajibola further stated that Africa continues to established itself as the
new retail frontier with a population of over 1.03 billion (15 percent of
global population ), retail spending of almost $0.9 trillion (N144trillion) in
2013 and $1.8trillion economy which is expected to grow by 5.3 percent in 2014,
stating that Africa is gradually becoming force to reckon.
He identified poor infrastructure base, forex instability,
legal system and inadequate security as the other factors militating against
retail sector Nigeria.
“For the efficient and functioning of the retail market in
Nigeria, stakeholders support is essential. Banking sector being the lifeblood
of any economy has a central role to play. Public and private partnership
arrangement in infrastructural development is needed,” he said.
Ajibola noted that there is a need for funding support for
Nigerian retailers, particularly made in Nigeria product.
According to Ajibola, “the retail market holds great
potentials to address the high employment rate in the country. These potentials
would only be realised if all stakeholders, public and private provide the
environment for this sector. A win-win situation can be achieved between the
banking industry and the retail sector through the development of tailor-made
products and serviceable banks for the retail sector. Regular knowledge sharing
platforms should be created between the banking industry and the retail sector
for stakeholders to understand each party with a view to jointly work out
modalities for addressing them.”
He said the banking sector must be there to be partnership
in progress for the retail sector.
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