Federal Government Ministries, Departments and Agencies, especially financial services regulators are to invest N1.54tn in five years to boost liquidity in the financial services sector.
According to the Federal Government National Development Plan 2021-2025, the government is planning to raise the liquidity thresholds in each segment of the financial system to the levels that will support the growth and development of the country.
The investment is also expected to strategically optimise all components of the nation’s balance sheet to unlock the liquidity required to support the stability, growth and transformation of the economy.
The Federal Government said it wants the total value of the payments system to be worth 500 per cent of the GDP by 2025, while the total private sector credit as a percentage of the GDP is expected to increase from 13.21 per cent to 25 per cent.
According to the document, the investment of these government institutions will be leveraged to organise and support the private sector to realise the goals of the NDP.
The NDP adds that private operators, such as banks, insurance companies, exchanges, and others in the various segments of the financial sector will be coordinated to invest and achieve their objectives.
Consequently, the Ministry of Finance, Budget and National Planning; Ministry of Industry, Trade and Investment; Infrastructure Concession Regulatory Commission; Central Bank of Nigeria; Securities and Exchange Commission, National Insurance Commission; National Pension Commission, and others have been tasked with raising the amount to raise liquidity thresholds of the financial sector over the five-year period.