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By Adewale Sanyaolu
The N2.9trillion lifeline by the Central Bank of Nigeria(CBN) through various intervention funds may have saved Deposit Money Banks(DMBs) and the power sector from total collapse.
Some industry observers who spoke at the weekend said that the apex bank’s backing of Deposit Money Banks (DMBs) in the takeover of some Distribution Companies(Discos) and the roles being played by it to ensure their shares are successful transferred to new investors has helped the financial and power sectors to remain afloat in the midst of a turbulent economy.
According to the stakeholders, without CBN’s action, the collapse of some banks as well as massive job losses would have been inevitable.
The experts, who also noted that the apex bank’s backing of the takeover saved the country from economic catastrophe, noting that recovering government loans as well as that of commercial banks was critical for the nation’s financial sector.
A power sector analyst, Adetayo Adegbemle, noted for instance that CBN’s role in protecting the collapse of banks from power sector loan was impactful, adding that the indebtedness of the power sector to the bank would have led to the collapse of many banks.
“I love the fact that CBN came into the power sector, not just to save it, but to prevent massive bank failure Don’t forget that, even though they have roles to play in the sector, they came in to save their own banking sector.
