Mr Wale Adegbite, a former chairman of the Manufacturers Association of Nigeria (MAN), Ogun Chapter, has advised the Federal Government to provide the needed infrastructure to boost the Central Bank of Nigeria’s (CBN) directive that banks should lend 60 per cent of their deposits to the real sector.
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Adegbite gave the advice in an interview with the News Agency of Nigeria (NAN) in Ota, Ogun, on Sunday.
A circular by the CBN on July 5 stated that all Deposit Money Banks (DMBs) are now required to maintain a minimum Loan to Deposit Ratio (LDR) of 60 per cent by Sept. 30.
CBN said the deposit would help to encourage SMEs, retail, mortgage and consumer lending.
Adegbite described the directive of the CBN as a welcome development for the agriculture, mining, manufacturing, building and the construction industries that constitute the real sector.
He, however, said, “there is no sufficient incentive to boost the sector because of the infrastructural deficit in the the country.”
He identified other necessary requirements needed to improve and galvanised the sector to include stable electricity supply, low interest rate and availability of foreign exchange for investors.
“There is an urgent need by the Federal Government to address the numerous challenges militating against the real sector and the economy, especially, power that has been the major problem in the country,” he said.
Adegbite said the provision of infrastructure and proper monitoring of banks would boost the real sector and translate into creation of employment.
He added that such a development would also improve the nation’s Gross Domestic Product(GDP). (NAN)
