Senator Victor Oyofo, has
described the high interest rate charged by commercial banks as the bane of industrial development in Nigeria.
Oyofo, who made the disclosure recently at the official opening of the 9th Abuja International Trade Fair, called for the ban on importation of generator, alleging that the importers are sabotaging the economy.
He expressed concern that the high interest rate on loan was a major challenge that slowed down the nation’s development, noting that a lot of small businesses had died due to the high interest charged on loans they obtained from different banks.
The lawmaker wondered how the economy can grow when people had to pay so much interest before they could get loans from the banks in order to invest, emphasising that many investors are scared to go to the Nigerian banks to borrow money.
According to him, when they remember the huge interest that they would pay on the loan they are taking, they would be deterred to go and borrow money.
Senator Oyofo stated, “there are many that border me on the interest rate the Central Bank of Nigeria (CBN) demands from the commercial banks that collect loan from it. And if we are talking of industrial development in the country, we should ask ourselves how much interest it gives loans to commercial banks.”
He reasoned that if the CBN was charging about two per cent as its interest, it would still make more money from commercial banks and many people would be willing to borrow.
He called on governments at all levels and stakeholders in the agricultural sectors to focus on the sector in order to produce raw materials and food for the nation’s teeming population.
The Senator also charged the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) to ensure that governments address the problems of power inadequacy in the country.
He noted that it was time for the organisation to be given autonomy by the Federal Government.
Oyofo, who accused manufacturers and importers of sabotaging the nation’s energy sector, therefore called for ban on importation of generator, stressing that “lf the importation of generators were not banned, our nation’s power development would not grow” and advised generator producers and importers to come and invest in the Nigerian energy sector.