DON'T BLAME THE CBN; BLAME NIGERIANS FOR FOREX SCARCITY, SAYS LEMO

Mr. Tunde Lemo, Chairman of Titan Trust Bank, has declared that the Central Bank of Nigeria (CBN) ought not to be blamed for the country's forex shortage.

He stated that, while the CBN must experiment with its currency policy in order to settle the federal government's debt, Nigerians must be held accountable.

“Because what affects the rate of exchange of your currency is what you can provide to the world; thus, if the demand for Nigerian goods is extremely low compared to what we intend to import, obviously your currency will continue to fall no matter what the CBN does,” he stated.

Lemo indicated yesterday in Lagos during the first reunion party for ex-Wema Bank colleagues that he agrees with the International Monetary Fund (IMF) that there is a need for a more market-friendly foreign exchange management system.

“If the CBN can do a little of that, we would see liquidity moving into the FX market,” he continued. “However, Nigerians should be blamed for the naira's devaluation since Nigerians have a high desire for flashy things bought from outside.”

Lemo praised the federal government for its part in assisting the economy to emerge from recession within 15 months, and he said that the banking industry has continued to give value to companies due to its tenacious spirit.

He intimated that the banking industry was able to revitalize the economy despite the financial crisis of 2007 and 2008, as well as the obstacles of COVID-19, which would be seen in 2020.

He went on to say that the market did not suffer during the COVID-19 epidemic and that it was as though the financial industry anticipated the pandemic's arrival.

“Every bank today has migrated all of its products to the digital platform, so whether the COVID-19 pandemic is limiting you or not, banking business through the digital service remains unchanged, and this was why we were able to boost our Gross Domestic Product (GDP) in the first quarter, which stood at 3.9,” he said.

“The GDP will continue to increase,” he says, despite the fact that the previous quarter's GDP performance was due to a lower base impact. The GDP will soften during the first quarter before increasing later in the year, particularly this year, which is an election year. During an election year, we like to see more inflation, which raises GDP; there will also be a lot of economic activity, and it will be inflationary; that is what I see on the horizon.

Meanwhile, he commented on Titan Bank's recent acquisition of Union Bank, saying, “The co-shareholders of Titan Trust Bank identified a unique opportunity in Union Bank; the bank has a heritage issue as an advantage; the bank value is so big.” The bank has been in operation for 104 years. The Union Bank has a strong position in the corporate world. Titan Trust Bank has been researching into it, and despite their age, they are currently the number one trading bank.

Titan Trust is the market leader in trade finance, and they spotted an opportunity in Union Bank to use our technology. Titan Trust is a bank that uses fintech to deploy its services, which is why you don't see our footprints all over the country, and we thought that by combining all of that strength with the modern strength and brand value of Union Bank, we could make an impression in Nigeria by rapidly deploying modern banking to every nook and cranny. As a result, there will be a significant synergy.