The Chartered Institute of Bankers of Nigeria (CIBN) has stated that it is in support of the recapitalisation of banks in the country, News About Nigeria reports.
The CIBN President, Dr. Ken Opara, made this known while speaking at the annual lecture of the institute in Lagos, with the theme “Improving Availability of Credit in the Nigerian Real Economy: The Critical Importance of Liquidity,” on Tuesday.
He noted that the ongoing exercise will be beneficial to the country as it will empower banks to lend more to the economy.
He decried the volume of credit to sectors like agriculture and manufacturing, stating that their services are low compared to their critical role in driving economic growth.
He, however, proposed that more credits be awarded to these key sectors, adding that doing this will in turn enable them to extend more credit to the economy’s productive sectors.
“I propose that we consider offering more credit to these key sectors and particularly the agriculture sector. It is for this reason that the recapitalisation exercise is a welcome development. The recently announced upward review of the Minimum Capital Requirements of Nigeria by the Central Bank of Nigeria would further empower banks to extend more credit to the economy’s productive sectors,” he stated.
Opara further maintained that the government needs to improve the ease of doing business and infrastructural development, such as power, roads, and rail networks, among others, while also setting up industrial centres where these companies can co-habit and share common infrastructure.
He urged the federal government to harmonise and reduce the various taxes and levies, including locating them in a single hub.
