By Busola Kareem

The Central Bank of Nigeria has disclosed that the nation’s currency has depreciated in about 85 percent in the last two years, calling on the risk managers in the banking sector to get ready for the pit falls threatening the banking sector.

Mrs Tokunbo Martins, the Director of Banking and Payment System, revealed this at a presentation over the weekend at a round-table discussion organized by the Risk Managers Association of Nigeria (RIMAN).

She stated that the national economy was undergoing hard times with the fall in oil prices, devaluation of the naira, inflation and negligible manufacturing output plaguing the country presently.

The Director of the Central Bank of Nigeria then urged all risk managers to create ways and solutions that will help maximize risk management in the banking sector. Pointing out the need to avoid such an event with the enforcement of standards and regulations as during the worldwide global financial crises since risk managers were at the receiving end of the blame during that period.

“The nation’s Gross Domestic Product has contracted by 2.2 per cent, inflation has gone up to above 18 per cent, the currency has depreciated by about 85 per cent in the past two years, and manufacturing has contracted by three per cent,” she said.

A member of the Board of Trustees of RIMAN, also stated that oil production has decreased by about 70 percent, thus exposing banks to manufacturing, oil and gas and the government.

She also said that there was a decline in the government revenue and the banking sector had a lot of risks facing it. Therefore, the future of risk management was in the enforcement of rules and standards.