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Obasanjo backs CBN
Obasanjo backs CBN
LERE OJEDOKUN,
Abuja
PRESIDENT
Olusegun Obasanjo yesterday finally opened up on the new N25 billion minimum
capital base requirement for banks, stating that the measure was meant to stem
"rent-seeking and mercantilism" by banks.
Speaking at the presentation of wholly
indigenous laptop computers by Onatek Computers Limited, at the State House,
Abuja he accused banks of "killing the economy of this country."
While noting that public sector funds from
which banks drew a huge chunk of their capital have not been ploughed into the
real sector of the economy, he insisted that "we must win the battle and do away
with rent-seeking and mercantilism in banking."
President Obasanjo who also hinted of the
possibility of under-funded banks going under, said some of the banks have
nothing to show beyond their air-conditioned offices and the charging of high
interest rates.
"Unless you push the banks, they won’t put
any money in production. They’ll rather put money in buying and selling, they’ll
put in commission agents," he said.
He commended promoters of the computer
firm and was delighted on hearing that loans secured by the company from its
bankers were on equity.
His words: "Thank God, Omatek loan was
based on equity. If you had borrowed the money on interest, they will charge 25
per cent and there is no way you borrow money at 25 per cent and break even."
"This is what they are doing to kill the
economy of this country. Get more equity from them, but don’t let them take
control of your firm," he advised the company owners.
The President, who reacted to the on-going
share subscription offers by some banks, assured the Omatek Managing Director
that he would personally drag any bank to court for any attempt to destroy the
firm.
Impressed by its performance and
contribution to employment and wealth creation, foreign investment attraction
and technology transfer, Obasanjo warned against undercuts by banks.
"And if any banker is playing you
magomago just let me know. Because this is battle and we must win the battle
of production in this country. We must win the battle of putting money in the
productive sector - manufacturing, agriculture, industry and ICT. We must win
the battle and do away with rent seeking and mercantilism in banking," he
stressed.
The President advised that Nigerian
experts in diaspora should be encouraged to come and invest in the nation’s
economy, stating that dependence on importation could not continue.
Three of the company directors, Mr. Fola
Adeola (Chairman), Mrs. Florence Seriki (Founder/Managing Director) and Mr. Jim
Ovia, described the company as the only one in Africa manufacturing casing and
speakers.
Mr. Adeola attributed the trail-blazing to
the administration’s policy of promoting made-in-Nigeria products.
In her presentation, Mrs. Seriki said with
three factories, the company had been able to attract foreign investment,
technology transfer as well as boost small and medium enterprises (SMEs).
She, however, appealed to President
Obasanjo to enforce the directive on government agencies to buy locally-made
goods just as she canvassed for tax incentives.
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