Nigeria Bank’s Loans Making People Poorer, Says Dogara

The Speaker of the House of Representatives, Mr Yakubu Dogara,
has decried difficulties faced by Nigerians in accessing bank
loans.

Dogara, made this known in his keynote address at a public
presentation/launch of the book “Banking Reform in Nigeria” on
Monday in Abuja.

He said that Nigerians were discouraged in managing their
businesses as a result of their inability to access loans from
banks.

” I have had cause to say this before, that unless you have
assets or equipment, there is no way you can take loan, or access
loans from Nigerian banks to do business.

“If you are not careful in taking loans from Nigerian banks, one
will just end up in the poverty gap.

“I don’t think our citizens are supposed to do their businesses
with money they already have in their pockets. Businesses elsewhere
are executed by loans from the banking industry in those
countries.

“I don’t know why the interest rate in Nigeria is so high. What
is it that we can do to lower it so that our young entrepreneurs
can risk taking money from our financial institutions in order to
realize their dreams.

“That has been the challenge, from the point of view of the
Executive down to the Parliament, the political will to address
this has not been there,” he said.

He therefore, called on all stakeholders to join hands in
ensuring improved banking institutions for better development.

“And the answer has always been that just one opinion cannot
solve the issue, all hands need to work at it.

The Author of the book, Rep. Bode Ayorinde (Ondo-APC), said that
the whole essence of the book “is to improve the economy by making
funds available at a better pricing for the development of the
economy.

“What we are saying about reforming the banking industry
basically is to expand financial inclusion and adjust the pricing
of our lending.

“Seriously, as an Author, l believe that the pricing of our
lending is on the high side and is one of the major reasons for non
performing loans,” he said.

One of the book reviewers, Mr Bismark Rewane, Managing Director,
Financial Derivatives, advised that interest rates should be
reduced as advised by the International Monetary Fund (IMF).

He emphasised that the reduction in the rate was necessary in
order to encourage small scale businesses and revive moribund
industries.

The Speaker of the House of Representatives, Mr Yakubu Dogara,
has decried difficulties faced by Nigerians in accessing bank
loans.

Dogara, made this known in his keynote address at a public
presentation/launch of the book “Banking Reform in Nigeria” on
Monday in Abuja.

He said that Nigerians were discouraged in managing their
businesses as a result of their inability to access loans from
banks.

” I have had cause to say this before, that unless you have
assets or equipment, there is no way you can take loan, or access
loans from Nigerian banks to do business.

“If you are not careful in taking loans from Nigerian banks, one
will just end up in the poverty gap.

“I don’t think our citizens are supposed to do their businesses
with money they already have in their pockets. Businesses elsewhere
are executed by loans from the banking industry in those
countries.

“I don’t know why the interest rate in Nigeria is so high. What
is it that we can do to lower it so that our young entrepreneurs
can risk taking money from our financial institutions in order to
realize their dreams.

“That has been the challenge, from the point of view of the
Executive down to the Parliament, the political will to address
this has not been there,” he said.

He therefore, called on all stakeholders to join hands in
ensuring improved banking institutions for better development.

“And the answer has always been that just one opinion cannot
solve the issue, all hands need to work at it.

The Author of the book, Rep. Bode Ayorinde (Ondo-APC), said that
the whole essence of the book “is to improve the economy by making
funds available at a better pricing for the development of the
economy.

“What we are saying about reforming the banking industry
basically is to expand financial inclusion and adjust the pricing
of our lending.

“Seriously, as an Author, l believe that the pricing of our
lending is on the high side and is one of the major reasons for non
performing loans,” he said.

One of the book reviewers, Mr Bismark Rewane, Managing Director,
Financial Derivatives, advised that interest rates should be
reduced as advised by the International Monetary Fund (IMF).

He emphasised that the reduction in the rate was necessary in
order to encourage small scale businesses and revive moribund
industries.