The Central Bank of Nigeria has urged the Manufacturers Association of Nigeria (MAN) to approach the development financing institutions like the Development Bank of Nigeria and Bank of Industry for their funding needs.
This was disclosed by Mr Eboagwu Ezulu, Deputy Director, Financial System Stability Directorate of the Central Bank of Nigeria (CBN), at the first National Stakeholders Conference organised by the Association of Corporate Affairs Managers of Banks (ACAMB) in partnership with the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
At the event, the Manufacturers Association of Nigeria (MAN) also urged commercial banks and the Organised Private Sector (OPS) to join hands to boost economic growth.
What they are saying
Mr Eboagwu Ezulu advised MAN to approach the development financing institutions for loans, stating that these institutions were created in collaboration with the apex bank.
- He said, “I am aware that the Development Bank of Nigeria was established in collaboration with the CBN to provide funding as well as the Bank of Industry established to support the manufacturing sector.
- “Have we the manufacturing sector approached those entities to utilise the funds available rather than asking the commercial banks? Banks are supposed to approach the CBN on behalf of their customers to solve these problems; the commercial banks lend for credit purposes, and they have the primary responsibility to protect their depositors.’’
Mr Mansur Ahmed, President of MAN, that the performance and development of the private and banking sectors were expedient for the sustainability of the economy; hence, the need for both sectors to work together to reduce poverty, attract investment and boost economic growth.
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- He said, “The traditional industry-bank lending relationship is no longer supporting the growth of the industry, the bank and the economy, as a whole. Industry activities have massively declined to show a rising number of moribund industries across the country and the increasing capital flight.
- “Based on this information, it is important that the commercial banks and the industry should come together to chart new ways of supporting each other to the benefit of all.”
He, therefore, recommended that the commercial bank should develop corporate patriotism to strengthen the willingness to lend at the interest rate that supports both the industry and the banking sector for the sake of the economy.
Dr Ken Opara, the CIBN President, noted that the organised private sectors were the real drivers of real sector growth and economic advancement through industrialisation, job creation, provision of goods and services and poverty alleviation
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- He said, “Thus a well-functioning financial system and a rigorous private sector are important drivers of national growth in terms of Gross Domestic Product, employment generation, economic stability and poverty reduction.”
- “However, I must admit that there are still a lot of untapped opportunities between these two critical sectors some of which are attributable to a lack of proper handshake between the bodies.
- “Given the interdependence of both sectors, it has become imperative for both to work mutually for the growth of the nation’s economy,” Opara said.