By Franklin Alli

Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has kicked against the proposed plans by the Federal Government to privatise the country’s industrial development bank, the Bank of Industry.

“Government’s proposed privatisation of the Bank of Industry (BOI) should be halted. Other countries have development banks for long term investments, particularly in the real sector,”said NACCIMA President, Dr. Simon Okolo.

According to him, government should rather seek to recapitalise BOI through a form of sovereign funds from the Excess Crude Account.
He further stated that Government had better evolve long term funding windows to ensure adequate flow of resources to the private sector at a minimum cost not above single digit interest rate to aid proper and effective planning and investment in the sector.

He urged  both the Central Bank of Nigeria (CBN) and Federal Ministry of Finance (MoF) to carry out their constitutional responsibility of ensuring price stability in the economy which they have not done for over two decades.

“As maintenance of price stability in the y tem economy will lower the interest rate that has over the years hovered between 15-30 percent lower inflation that is currently above 12 percent and thus have eroded consumers purchasing power. So if the CBN and the Ministry of Finaance can perform their constitutional responsibilities, cost of funds will go down to provide the needed cheap funds investors need to develop and grow the economy.”