The Central Bank of Nigeria has implored the Manufacturers Association of Nigeria (MAN) to approach development financing institutions for their funding needs.
Mr Eboagwu Ezulu, Deputy Director, Financial System Stability Directorate of the Central Bank of Nigeria (CBN), mentioned this at the first National Stakeholders Conference organised by the Association of Corporate Affairs Managers of Banks (ACAMB) in partnership with the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
He advised MAN to approach the development financing institutions for loans, stating that these institutions were created in collaboration with the apex bank.
He said, “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.
“Has the manufacturing sector approached those entities to utilise the funds available rather than asking the commercial banks? Banks are supposed to approach the CBN on behalf of their customers to solve these problems; the commercial banks lend for credit purposes, and they have the primary responsibility to protect their depositors.’’
Meanwhile, the Manufacturers Association of Nigeria (MAN) in turn pleaded with commercial banks and the Organised Private Sector (OPS) to join hands to boost economic growth.
Mr Mansur Ahmed, President of MAN, stressed that the performance and development of the private and banking sectors were expedient for the sustainability of the economy; hence, the need for both sectors to work together to reduce poverty, attract investment and boost 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. Industry activities have massively declined to show a rising number of moribund industries across the country and the increasing capital flight.”
“Based on this information, it is important that the commercial banks and the industry should come together to chart new ways of supporting each other to the benefit of all.”
He, therefore, recommended that the commercial bank should develop corporate patriotism to strengthen the willingness to lend at the interest rate that supports both the industry and the banking sector for the sake of the economy.