Daily Independent Online.
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Monday,July 19, 2004.
Yobe governor
backs N25 billion capital base
By Thomas Ajoronor
Special
Correspondent,
Damaturu
The Yobe State Governor, Alhaji Bukar Abba
Ibrahim, has backed the directive of the Central Bank of Nigeria (CBN) to banks
to raise their capital base from N2 billion to N25 billion.
Speaking at the commissioning of the
Damaturu branch of the NUB International Bank Limited, Ibrahim stressed the
need for a strong and sound financial sector that can move the nation’s
economy forward.
He said there is the need for “most
banks, especially the weak ones to collaborate on mergers and
acquisition,” adding that the directive is a step in the right direction.
He praised the CBN for its recent warning
to banks over the joint agreement that the maximum interest rates should not
exceed four per cent of the prevailing Minimum Rediscount Rate (MRR). He hailed
the threat to ask defaulting banks to return the excess charges.
He urged banks to be innovative,
hardworking and rise up to the challenges of the time by helping to assist the
nation’s development efforts. He also asked banks to give loans to
investors to aid socio-economic development.
Ibrahim called on the people of Yobe to
imbibe proper banking habits, adding that “We must stop carrying large
sums of money on us either when travelling, in the market or keeping money at
home. Doing so invites and encourages armed robbers.
NUB International Bank Limited that metamorphosed
from the former Nigeria Universal Bank Limited, according to the Chairman/Chief
Executive Officer, Alhaji Muhammad I. Yahaya, has been revived and well
repositioned for the challenges of modern banking.
Muhammad said in
addition to their traditional functions as fund managers they are also
interested in agricultural projects financing and financial advisory services
to government.
