Data reveals that N36 trillion is kept in banks and low yielding assets by Nigerians. Despite an increase in Nigeria’s inflation rate that rose to 12.82%, deposit rates, fixed deposit rates, and risk-free rates such as treasury bills have been driven to 6% per annum.
Recently, a letter was written to banks which revealed a fall in the market rates of the banking sector, following the use of policies aimed at improving credit.
According to the CBN,
“In line with recent market developments, the bank has reviewed the minimum interest payable on savings deposits as provided in its guide to charges by banks, other financial and non-bank financial institutions issued in December.
“Consequently, all deposit money banks are hereby informed that effective September 1, 2020, interest on local currency savings deposits shall be negotiable subject to a minimum of 10 percent per annum of Monetary Policy Rate”
Government securities, commercial bonds, and the stock market have been the go-to investments for many Nigerians. Despite the significant number of investors in the markets, data indicates that there is a lot more market penetration that could take place.
Nigeria’s economic woes have challenged households to save more while also taking a cautiously optimistic approach with investments. As a result, many Nigerians believe that keeping their money in a bank account is more than satisfactory to meet their needs.
Despite the challenges related to owning a bank account, Nigerian banks have taken significant leaps to provide finance for Africans across the continent. Now, a new approach to finance promises to serve the common man or woman of Africa’s largest economy.
Cryptocurrency (especially Bitcoin) has given people not only in Nigeria but around the African continent new opportunities to experience finance in life-changing ways.
Recently, details were revealed of a $6 billion in cryptocurrency city being raised for a cryptocurrency city in Senegal by pop star and businessman, Akon. The cryptocurrency city, Akon City promises to provide jobs for Africans and boost the nation’s tourism sector. Such projects provide a promising glimpse of the future of cryptocurrency and the history that will be made in Africa.