The Director-General, Franco-Nigerian Chamber of Commerce and Industry, Moses Umoru has called for increased lending from commercial banks to the real sector.
Umoru made this call in reaction to the outcome of the recently held Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) of which the monetary policy rate (MPR) was cut from 14 per cent to 13.5 per cent.
“While we commend the CBN for the downward adjustment of the MPR rate by 50 basis points as the last reduction was done in July of 2016 and needed at this time when the nation is experiencing feeble economic growth, it is imperative to encourage commercial banks to lend to the real sector. The real sector is the drivers of real growth and creates employment.
“The adjustment by the CBN will indeed bring liquidity to the commercial banks but the fear is that the banks will use the funds to obtain treasury bills that yield interest of 16 per cent to 18 per cent as against boosting the real sector through lending,” he said.
According to him, the subject of lending to the real sector should go beyond moral suasion and the CBN should formulate regulations to drive this action.