Loans: Dogara Decries High Interest Rates

BY EDMOND ODOK, ABUJA – Speaker of the House of Representatives, Mr Yakubu Dogara has decried difficulties faced by Nigerians in accessing bank loans for productive activities.

Dogara said due to their inability to readily access loans from banks in the country, Nigerians are discouraged and frustrated in pursuing and managing their businesses and dream projects

Delivering a keynote address at the public presentation/launch of the book, ‘Banking Reform in Nigeria’ in Abuja on Monday, Speaker Dogara said; “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.”

The Speaker, who decried disturbing high interest rate in Nigeria, said; “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.”

Advocating collaboration among stakeholders to improve banking institutions for better development, Dogara said; “The answer has always been that just one opinion cannot solve the issue, all hands need to work at it.”

In his remarks, author of the book, Rep. Bode Ayorinde (Ondo-APC), said the book aims at improving the economy by making funds available at a better pricing for economic development.

According to him, “What we are saying about reforming the banking industry basically is to expand financial inclusion and adjust the pricing of our lending”, adding; “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.”

One of the book reviewers and Managing Director, Financial Derivatives, Mr Bismark Rewane said interest rates should be reduced as advised by the International Monetary Fund (IMF), noting that rate reduction was necessary to encourage small scale businesses and revive moribund industries across the country.