Some stakeholders in the banking industry yesterday said the unpaid N800 billlion subsidy arrears to oil marketers have created liquidity gap in the industry.
They called on the Federal Government to dialogue with the oil marketers to stop their proposed strike, in separate interviews with  newsmen  in Lagos.
The Tide source reports that oil marketers have initiated moves to shut own depots nationwide over the inability of the Federal Government to settle the accumulated debts of over N800 billion subsidy -claims.
Former Vice President of the Chartered Institute of Bankers of Nigeria (CIBN) Dr. Uche Olowu said that debts had affected the quality of the banks’ portfolios.
He said that the non-payment of the subsidy arrears had led to a negative impact on banks’ operational costs.
According to him, the development has led to transactional velocity of money, which has impacted negatively on the economy.
“There should be transactional velocity of money. This means that if the money comes, the money will go to other traders who will continue to use the money.
“Once this is in place, it will be able to broaden the market.
“However, this has not happened because of the gap created for not paying back the money. ’Therefore, the economy has witnessed the kind of activities that should not have happened in the first place if the money had been paid,” he said.
Olowu said that if the money had been refunded, it would have in return created jobs, businesses and even investments in the economy would thrive.
The banker noted that the development had contracted the economy.
“The situation is critical and because activities are slow, it has affected the economy quickly.
“On the other hand, if the government says it does not have the money, it should have at least found an alternative means to ensure that the gap was not created .
. “Sovereign risk in every other developed clime means when a government says it is going to pay, you can take the promise home.
“For instance, government should have raised money either through bonds and fulfill its obligation,” he said.
Olowu said that the government needed to inject back the liquidity in the financial system not to allow the industry to suffer.
“Mind you, the financial system is the engine that lubricates every other sector. So; it suffers if you don’t put liquidity in the industry.
“If something urgent is not done, it can reduce the banks’ portfolios and that can have adverse impacts on banks’ liquidity, profit and in terms of provisions and all that,” he said.
Olowu decried that the situation could pose a run on banks and the industry could collapse.
He called on government to ensure timely payment of the subsidy arrears to boost the confidence Nigerians have on the regime.