Senate Reveals Nigeria’s banking sector is Run By Cartel, CBN Losing Control

 

 

 

 

 

The Senate on Tuesday said Nigeria’s banking sector is being run by a cartel which frustrates the monetary and fiscal policies of the Federal Government. It said the group of bank owners has become strong that it manipulates the economy.

The upper chamber of the National Assembly also condemned the high interest rates imposed by Deposit Money Banks on small and medium scale enterprises. The legislature stated that Nigeria’s economy cannot survive when it is difficult to run businesses.

These were part of the submissions by senators at the plenary on Tuesday while speaking on a motion moved by Senator Rafiu Ibrahim (Kwara South) titled, ‘The Dire Need for a Stakeholders’ Roundtable to Address Increasing Interest Rates in Nigeria.’

The lawmakers unanimously resolved to mandate the Senate Committee on Banking, Insurance and Other Financial Institutions to organise a roundtable with the Central Bank of Nigeria, Deposit Money Banks, Nigerian Deposit Insurance Corporation as well as other relevant stakeholders and industry experts.

The roundtable is to find “immediate, sustainable and lasting solutions that will help usher in a new interest rate regime that supports enterprise development in Nigeria.”

In his submission, the Deputy Majority Leader, Senator Bala Ibn Na’Allah, alleged that the Central Bank of Nigeria was losing control of the banking sector.

He said, “The best approach to this is to be honest and sincere to ourselves; to look at the banking sector in Nigeria and see whether it can truly be called a banking sector that is sensitive to the development of this country.

“First, we must admit the fact that we have one of the most unpredictable economies in the world and the reason being that the CBN has lost its grip (on the sector). In one day it is the regulator and participant in the banking industry and in another day it even goes outside its mandate.

“What explains this is simple: our investors in the banking sector have constituted themselves into a cartel and, therefore, they possess the capacity to manipulate the fiscal and monetary policies, and ensure that at no time will the two come together for the purpose of stabilising the economy. When it stabilises, they become the losers.”

Also, Senator Abdullahi Yahaya pointed out that the major problem that led to the high interest rates was because the monetary and fiscal policies were not aligning.

He said in part, “What is happening today is that the fiscal policy authorities are working at cross purposes with the monetary policy authorities. I want this Senate and you, Mr. President, to use your offices to please draw the attention of the fiscal and monetary authorities to do the right thing.

“These policies we are using, we have used them for the past 20 years and they have failed. You cannot fight inflation and spur growth and development at the same time.”

Bricks

Nigeria's Oko Emmanuel Ekpo popularly known as Emma Bricks Oko is without doubt one of the country's best, versatile young broadcasters in the broadcasting industry today. The multi talented and award winning media personality is the most creative man among his peers in the industry. He has established a strong and authoritative voice in a career that has traversed both Radio & TV studios, diverse beats as Reporter/Editor and Newscaster. He has also ventured into the BUSSINESS of content creation as Creative writer, besides being very successful as a PR executive, promoter, producer, actor and event/artistes manager. Emma Bricks Oko was born on the 15th of June in Yala local government of Cross River State Nigeria. He gained fame and recognition in the media through his first TV programme "Nigerian Roads" in the late 2000s and was nominated for the 2011 NBC awards. He has bagged different awards and ambassadorial recognition which include: -Most outspoken Journalist, 2008 by (Department of Mass Communication, Fed. Poly, Bida) -Media Cancer Ambassador, 2012 by (Fed. ministry of health) -Nigerian Goodwill Ambassador, 2014 by (Nigerian Goodwill Ambassador Agency). After working with different broadcasting firms within the nation's capital which include the following, Independent Television, (ITV), Dasamal Television Network (DTN), love FM and Energy TV, he has registered brickswrites.com.ng, a blogging network which will help him to get to the heterogeneous audience as the world has gone digital in broadcasting.

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