The Central Bank of Nigeria has recommended the Manufacturers Association of Nigeria (MAN) to seek finance from development financing institutions such as the Development Bank of Nigeria and the Bank of Industry.
Mr. Eboagwu Ezulu, Deputy Director, Financial System Stability Directorate of the Central Bank of Nigeria (CBN), disclosed this at the first National Stakeholders Conference held in Lagos by the Association of Corporate Affairs Managers of Banks (ACAMB) in collaboration with the Chartered Institute of Bankers of Nigeria (CIBN).
The Manufacturers Association of Nigeria (MAN) also urged commercial banks and the Organized Private Sector (OPS) to work together to enhance economic growth at the occasion.
Mr. Eboagwu Ezulu encouraged MAN to seek loans from development finance institutions, adding that these organizations were established in conjunction with the central bank.
“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,” he said. “Have we, the manufacturing sector, approached those entities to use the funds available instead of asking commercial banks?” Commercial banks lend for credit purposes, and they have the primary responsibility to protect their depositors.”
Mr. Mansur Ahmed, President of MAN, stated that the performance and development of the private and banking sectors were critical to the economy’s long-term viability; thus, both sectors needed to collaborate to eliminate poverty, attract investment, and improve economic growth.
“The traditional industry-bank lending relationship is no longer supporting the growth of the industry, the bank, and the economy as a whole,” he stated. Industry activity has drastically decreased, resulting in an expanding number of moribund enterprises across the country and increased capital flight.” Based on this information, it is critical that commercial banks and the industry work together to develop innovative ways of assisting one another for the benefit of all.”
As a result, he advised commercial banks to foster corporate patriotism in order to increase their willingness to lend at interest rates that benefit both the industry and the banking sector for the sake of the economy.
The CIBN President, Dr Ken Opara, stated that the organized private sectors were the true drivers of real sector growth and economic advancement through industrialization, job creation, provision of goods and services, and poverty alleviation.
“Thus, a well-functioning financial system and a rigorous private sector are important drivers of national growth in terms of GDP, job creation, economic stability, and poverty reduction,” he said.
“However, I must admit that there are many untapped opportunities between these two critical sectors, some of which are due to a lack of proper handshake between the bodies.”
“Given the interdependence of both sectors,” Opara stated, “it has become imperative for both to work mutually for the growth of the nation’s economy.”