The Organized Private Sector (OPS) of Nigeria on Wednesday sought collaboration from the Central Bank of Nigeria (CBN) and the banking sector on the availability of long-term loans and foreign exchange for sustainable economic growth.
Other areas of collaboration include single-digit interest rates, capital equipment procurement and joint ventures.
Mansur Ahmed, President of the Manufacturers Association of Nigeria (MAN), said this at the first National Stakeholders Conference on “Promoting Synergy between the Banking Sector and the Organized Private Sector”, organized by the Association of Commercial Affairs Managers of Banks (ACAMB) in Lagos.
OPS is a body that brings together key business management organizations such as MAN, Nigeria Employers Consultative Association (NECA), Nigerian Association of Chambers of Commerce, Industry, Mining and Agriculture (NACCIMA), the Nigerian Association of Small and Medium Enterprises (NASME) and the National Association of Small Scale Industrialists (NASSI), to talk about the continuous improvement of the business operating environment in the country.
Represented by Ambrose Chukwuma Oruche, Director, Business Services, MAN, Ahmed said that the availability of funds at a cheaper rate reduces the cost of production, improves the quality of outputs or the efficiency with which inputs are turned into outputs and contributes to the growth of the private sector in an economy and the multiplier effect will be poverty reduction; increase in per capita income, increase in the country’s competitiveness and by extension, economic growth.
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He noted that limited access to credit facilities, especially long-term finance and the high cost of funds, has been one of the major impediments to private sector growth in Nigeria, resulting in increased poverty. , unemployment, insecurity and economic stagnation.
“There is no doubt that the industry needs the bank to increase investment and production, while the bank needs the industry for interest payment income and stock underwriting,” he said. he declared.
In response, Eboagwu Ezulu, deputy director of the CBN’s banking supervision department, said there are trillions of naira available to take, adding that banks are expected to approach the CBN on behalf of their clients to access funds. . He feared that Nigeria had a long history of default. “People borrow with the intention of not paying back,” he said.
Ezulu encouraged the manufacturing sector to approach the Development Bank of Nigeria, which he said was set up in collaboration with the CBN, as well as to approach the Bank of Industry (BoI) to access the funds rather than focus on banks.
In his address, Rasheed Bolarinwa, President of ACAMB, said the conference provided a unique platform for private sector players and the banking community to share their views on how synergy, communication, cooperation and mutual understanding between these two critical segments of the Nigerian economy can be improved.
“The outlook of this stakeholder conference is basically to develop an achievable roadmap for both sectors towards synergies for the benefit of the national economy,” he said.
According to him, finance, the essence of banking, is the engine of the private sector. Capital is probably the first factor of production factors. On the other hand, the private sector, as the end user of banking services and the most important sector of the economy, is also conversely the engine of a sustainable and virile banking sector.
“So I would say there is a symbiotic relationship between the two sectors. The banking sector is important to the private sector, just as the private sector is important to banks. This is why ACAMB is calling for this synergistic dialogue,” Bolarinwa said.