. bank

*CBN urges patronage of devt banks

By Babajide Komolafe, Economy Editor

Members of the Organised Private Sector, OPS, have called for a special fund to support industry-bank joint ventures in order to enhance the contribution of the two sectors to the economy.

Meanwhile, the Central Bank of Nigeria, CBN, has advised real sector operators to focus on the development banks in their quest for long term funding and lower interest rate.

These were highlights of the National Stakeholder Conference of the Association of Corporate Affairs of Banks (ACAMB) held in Lagos, with the theme, “Promoting Synergy between the Banking Industry and the Organised Private Sector”.

ACAMB President, Rasheed Bolarinwa, in his opening speech said: “The conference offers a unique platform for private sector players and the banking community to share perspectives on how the synergy, communication, cooperation and mutual understanding between these two critical segments of the Nigerian economy can be improved.”

While stressing the need for commercial banks and the real sector  come together to chat new ways of supporting each other to the benefit of  the economy, Director General Nigeria Employers Consultative Council,  Adewale Oyerinde, noted that, “the banking industry performance in releasing funds to the private sector has not been optimal due to the constraint earlier mentioned and the macroeconomic challenges that increase the cost of funding thereby discouraging  potential borrowers and consequently hinders the performance of the manufacturing sector and the banking industry.”

While calling for a special fund to support industry-bank joint ventures, he said, “Security of loan has been one of the major hindrances of loan disbursement to the private sector. To guide against misappropriation and diversion of the fund, the banking industry can go into joint ventures with manufacturers in specific production/ investment to ensure security of the loan, appropriate refund for mutual benefit of the parties.”

National President, Nigerian Association Of Chambers Of Commerce, Industry, Mines And Agriculture (NACCIMA), Ide Udeagbala, averred that OPS is ready to partner with the banking sector to enhance the growth of the economy. Responding to clamour for increased funding,  Deputy Director, Banking Services, CBN, Mr. Egboagwu Ezulu, said that members of the real sector should focus more of the funding request on the Bank of Industry (BoI) and the Development Bank of Nigeria (DBN).

Subscribe for latest Videos


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.