As
the 2015 presidential election holds this week, Deposit Money Banks (DBMs) have
witnessed massive withdrawal by depositors as fear of post election uncertainty
grips them.
Candidate
of the Peoples Democratic Power (PDP), President Goodluck Jonathan and his main
rival, General Muhammadu Buhari(retd) of All Progressives Congress (APC) will
face each other on March 28, to test their popularity and acceptability to form
the next government that will rule the nation for the next four years. The
election has been described as toughest one in the country since 1999, when the
military handed over power to the civilians.
The
poll, which was delayed by six weeks after security reports from the military
show that there is need for more time to end Boko Haram insurgency in the
north-east part of the country, will now start this week.
According
to Nigerian NewsDirect bank depositors have consistently flooded the banking
halls for massive withdrawal and ATMs collections for cash to spend during the
election and post election period.
The
banks visited last week are First Bank, Sky Bank, First City Monument Bank and
Unity Bank. Three of the FCMB branches in Lagos state visited by our
correspondent were filled to capacity as depositors trooped in to collect cash.
A
top bank official disclosed to our correspondent that banks might not open
during the election period and immediately after the election and families
could have problem if there is no money to buy basic needs.
He
said, “Depositors will always try to be on a safer side by making enough
withdrawal for shopping and to meet other expenses during the election since
nobody is sure of what will happen after the election, there could be political
violence”.
The
political class has further complicated the already tense atmosphere with
unguarded utterances currently scaring away investors as business proposals and
ongoing projects have been suspended because of possible policy shift if there
is regime change or post election violence.
Some
investors have also said that Nigeria might disintegrate after the March 28 and
April 11, 2015 polls due to the attitude of political leaders who might not
agree with the result of the election.
Speaking
exclusively with Nigerian NewsDirect, Former Registrar, Chartered Institute of
Bankers of Nigeria (CIBN), Dr. Uju Ogunbunka and the President Bank Customers
Association of Nigeria (BCAN) said that there were many reasons bank customers
could rush to banks for withdrawal.
Dr.
Ogunbunka explained that people might be pre-empting what could happen during
and after election adding that this could trigger massive withdrawal of
deposits by customers.
However,
he said that depositors’ crowd in some of the Deposit Money Banks (DBN) may not
necessarily mean that they are withdrawing money in preparation towards the
general elections.
The
BCAN boss, however, noted that there is a possibility that the banks’
electronic platforms may not work well during election for fear of fraud and
this could trigger anticipated withdrawal by depositors.
He
said such withdrawal might not necessarily be because of the election but other
reasons such as lack of effective operation of ATM or it could be during the
rushing hour.
He
pointed out that people could be rushing to the banks to deposit instead of
withdrawal just because they do not want to keep money at home.
With
just five days to the March 28 elections, advertising spend on
political campaigns has been estimated to have cost political parties,
friends and well wishers of those seeking elective offices a princely
N4.9 billion so far. However, federal and state advert regulatory
agencies have expressed displeasure over publications of unapproved
advert materials. - See more at:
http://www.vanguardngr.com/2015/03/parties-spend-n4-9bn-on-political-adverts/#sthash.wQPnDZ3d.dpuf
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