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B N W: Biafra Nigeria World News |
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Obasanjo seeks stable interest rate, insists on N25b capital base
PRESIDENT Olusegun Obasanjo yesterday urged the nation's banks to maintain a consistent interest rate regime.
He also disclosed that the Federal Government would not review its decision to raise the capitalisation base of banks from N2 billion to N25 billion.
Obasanjo spoke at the 10th yearly conference of the Chartered Institute of Bankers (CIBN) in Abuja.
According to the President, "the current interest rates are not only criminal but also annoying."
He warned against attempts by individuals or groups to thwart the government's effort aimed at strengthening the banking sector, saying: ''I hope that individuals and groups will not attempt to
partisanly politicise the urgently needed reforms, otherwise such people will be classified as anti-people; enemies of the people and enemies of progress.''
He continued: ''The policy is not designed to penalise any bank nor to precipitate crisis in the banking sector. We have over 40 banks or there about that have collapsed in the recent past between 1990 and now. There is enough crisis in the sector already.
''Government cannot create crisis, instead of creating more we should prevent any more crisis in the industry and that is what we are doing. If anything, the policy is designed to strenghten the system and the individual bank so as to empower the banks to re-design and re-conceptualise their mission in a rapidly growing economy and make them less susceptible to shocks .
'' In addition, the reform is designed to provide more efficient services to the Nigerian people by
channelling credible funds to the real sector of the economy.''
Also speaking at the event, the CBN Governor, Prof. Charles Soludo underscored the need for all stakeholders to support the reform agenda to ensure an enduring result.
Represented by his deputy in charge of Operations, Mr. Shamsudeen Usman, the CBN boss expressed delight at the growing support for the reform.
In a paper on: "The role of banks in the implementation of the National Economic Empowerment
and Development Strategy (NEEDS) , the Economic Adviser to the President and the Chief Executive of the National Planning Commission, Prof. Ode Ojowu stated banks' role in the initiative.
He listed some of them as: Banks would facilitate the transformation of the rural sector by promoting the rapid expansion of banking facilities and services and banking habits in the
rural communities.
Ojowu said they could do this by providing saving deposit facilities for their customers and thereby
help to mobilise rural savings; undertake a long-term lending; conform to national objectives by taking more active part in the financing of economic programmes of national priority and using a significant part
of their profits to improve the quality of their services.
He said: ''The private sector including the banks has an invaluable role to play in the implementation of the economic programme. The redefinition of the role of government entails an encompassing overhaul of the public sector institutions, which will involve reduction in the size of the public sector as well as improved delivery of service.''
Earlier in an address, the President of the CIBN, Mr. Simon Kolawole who described the banking sector as ''the life-wire of the Nigerian economy ''explained that this year's theme was chosen as it was relevant to the existing interest of bankers.
"The successful implementation of these reforms should be paramount to us as bankers. It is important that banks and our members understand their expected roles under the NEEDS and the strategies that should be adopted to effectively contribute to the success of the reform programmes.
"That way, they will be properly prepared and focused to partner with the regulatory and supervisory authorities as well as other stakeholders, towards the realisation of the objectives, '' Kolawole added.
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