The Central Bank of Nigeria (CBN) has encouraged students across Nigerian schools to imbibe a money-saving culture for their future benefits and to contribute to job and wealth creation in the country.
The acting director of the consumer protection department of the Central Bank, Ibrahim Yahaya, made the call on Thursday during a chat with students of Federal Science and Technical College in Orozo, Abuja, on financial literacy for economic decisions for young people.
The outreach was part of activities to mark the 2024 World Savings Day and was organized in partnership with Junior Achievement Nigeria, a non-governmental organization.
He encouraged the secondary school students to save from the little they earn as feeding allowance from their parents and guardians, which he said will not only amount to savings but investment to earn savings interest from the commercial banks and also serve as a source of credit liquidity for the banks to lend to and fund businesses for job and wealth creation.
“What banks and other lending institutions give out as credit comes from our deposits, which is part of savings, what corporations or entities have to drive their businesses or by way of investments in equities, and it comes as capital for economic activities, and that will generate profits that will be distributed for the shareholders and also for the growth of those institutions.
“Of course, they provide the much-needed employment and the much-needed credit for the banks on the lending institution. So invest. The importance of savings and investment can never be overemphasised,” Yahaya stated.
He also urged the students to invest in securities such as shares and bonds to make profits and dividends that accrue to them as returns on their savings and investments.
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“Talk to your parents about the need to open an account for you. It will help you in the future. The idea is for all of us to have a savings culture. Savings taken as part of an attitude has significant benefits for you in the future,” he told the students from both junior and senior sections of the school, adding that, “People’s earnings are never enough. But you have to save for the rainy day.” He urged the students to strive to cultivate the culture of saving in various ways to plan for their future economic endeavors.
The acting director disclosed that the CBN, along with other stakeholders in the financial and education sectors, have concluded the building of a new school curriculum on financial literacy, as well as other matters around savings and investments.
He said the curriculum is awaiting the launch for it to be part of the course of study in Nigerian schools.
In agreement with the need to imbibe a savings culture, one of the students, Abdul Amuda, in senior secondary school 1A of the school, said he would rather have $5000 in five years from now than have $1000 now. The explanation is that the savings for the future would help him build buffers for future expenses when he would need more money to meet educational demands.
Programme officer at Junior Achievement Nigeria in Abuja, Ruth Odike, said the training on financial literacy has become more relevant now to educate the young ones on savings and investment decision-making guidelines to enable them to prepare for a better future.
Odike said, “The aim is to ensure young people have the skill set and mindset to build thriving communities.” She added that the intervention program delivers practical, experiential hands-on programs under the four pillars of financial literacy, work readiness, entrepreneurship, and digital literacy to young people between the ages of five and 35.
