In its bid to strengthen the financial sector and ensure its maximum contribution to the economy, the Federal Executive Council (FEC) has endorsed the Central Bank of Nigeria’s consideration of other banking sector regulation initiatives. These initiatives will include the replacement of the current universal banking model with commercial, mortgage and non-interest banks with strong emphasis on corporate governance and board performance.
Briefing the media on the outcome of the week’s FEC meeting at the State House on Wednesday 19th May, 2010 Information and Communications Minister, Prof. Dora Akunyili said that the Council endorsed the initiative after the briefing by the Governor of the Central Bank of Nigeria, Lamido Sanusi.

According to her, the Central Bank of Nigeria (CBN) has also taken initiatives to unlock the credit market and drive real sector activities, through the introduction of the N200 billion SME guarantee scheme and N500 billion for financing power sector projects and restructuring and refinancing loans for SMEs and manufacturing sectors.
She stated further that the CBN governor is delivering on its key mandate of providing monetary and financial stability while the implementation of the banking sector reforms has engendered confidence in the system and prevented a run on the banks.

The Minister noted that the establishment of the Asset Management Company of Nigeria (AMCON), would provide a resolution vehicle for addressing banking sector crisis adding that as the Nigerian economy remains resilient and the near-to-medium term outlook is positive, Monetary policy will continue to be supportive of government objectives.
Akunyili who said that the Council commended the efforts of the CBN governor in reforming and repositioning the banking sector, expressed optimism that stronger growth can be achieved with the provision of critical infrastructure and implementation of on-going reforms in all the sectors of the economy.

Commenting on the performance of the economy, Akunyili said that Sanusi informed the Council that there had been steady growth in Gross Domestic Products (GDP) and a moderation of inflation.  She added that inter-bank rates and other money market rates, including lending have also moderated.

The foreign exchange market was calm and substantially stable, while the capital market is also recovering; the growth in monetary and private sector credit aggregates however remained sluggish.

Speaking on the ICT memo submitted by the Information ministry, the Minister said the support by the Council for it was meant to create a generation of Nigerians with broad base theoretical and practical knowledge of ICT.
She disclosed that the contract involves the deployment of 100 classmate Personal Computers (PC) for students; two laptop computers for teachers for teaching purposes; one server; and broadband Internet connections with two years of guaranteed bandwidth payment.

It also included provision of power supply through a solar-based system; refurbishing and securing of equipment storage rooms; provision of a wireless network and charging platforms for each of the selected 290 schools, at the unit cost of N12.31 million per school.

On the right terminology to be used to describe the Federal Executive Council, the Minister said that the Attorney General of the Federation and Minister of Justice in a note to Council, advise that there is a rational basis for the retention of the term ‘Federal Executive Council’ because of its long usage over the years and to maintain consistency in the customary references to Council meetings and ownership of Council documents.