The Central Bank of Nigeria (CBN) has urged players in the manufacturing sector to put pressure on Bank of Industry (BoI), and Development Bank of Nigeria (DBN) for single interest rate funding to expand their operations.
The apex bank said, if it sees a lot of pressure from those two entities, CBN may push its intervention funds through BoI and DBN instead of the commercial banks.
Speaking at the Association of Corporate Affairs Managers of Banks (ACAMB) maiden national stakeholders conference in Lagos yesterday, the CBN deputy director, Banking Services, Mr. Egboagwu Ezulu said, “ The manufacturing sector should put pressure on the Bank of Industry, and Development Bank of Nigeria to source funds, and when we see a lot of pressure from those two entities, the CBN instead of going through commercial banks would push those funds to those two entities rather than going to the commercial banks who would give double-digit loans. I want to appeal that industrialists, as well as small businesses, should approach those two entities to get funding.”
Ezulu had called on the Organised Private Sector (OPS) to take advantage of the various interventions of the CBN to boost output through the Bank of Industry (BoI), Development Bank of Nigeria (DBN), and commercial banks.
“When you talk about financing small businesses, the CBN has done a lot of funding to the sector alluding to trillions of naira, and has established two entities for this purpose. Has the manufacturing sector approached these entities for the funds available rather than emphasising on the commercial banks,” he said.
He also urged the Organised Private Sector (OPS) to bring in the proceeds of foreign exchange earning back to aid the CBN to meet its foreign exchange demand.
“We are forex out of this country and dumping offshore when we are told to bring them back because if Nigerians are bringing them back home, we would not be talking about the challenges of forex.
“There is a challenge for we the individuals and businesses to do the right thing. That is why the CBN introduced the RT200 to encourage you to bring back the dollar you are saying is scarce but in the books of the banks we see billions of dollars that have been exported out of the country and the OPS are not bringing it back, so how do we finance forex demand.”
On his part, the president of the Nigerian Chambers of Commerce, Ide Udeagbala said, “ An efficient financial system breeds a vibrant economy for sustained inclusive economic growth and development. Therefore, there is a need for the banking sector to further enhance investments by identifying and funding good business opportunities and facilitating the exchange of goods and services as a means of contributing to the growth of the private sector.
For this role, you will find a worthy partner in the organised private sector.”
In his welcome address, the president, ACAMB, Mr Rasheed Bolarinwa said, “To the extent that financial intermediaries are crucial to economic growth, there is bound to be a meeting point between OPS and the banking sector. From available communication research efforts, there seems to be a mutual misunderstanding between the two sectors, and all efforts to streamline this perceived gap have not been totally successful.
“The banking sector and the OPS are meant to be the main drivers of the nation’s economy. One galvanises the credit from the surplus side and redistributing to the deficit size. The other operates principally from the productive side, creating wealth and values. Thus, the two sectors are like two sides of a coin. They are co-joined, and must function together in an economic sense. So, there is nexus; a link between the two at all time if any economy is to develop and grow.”