CBN Urges States to Establish Industry Banks

budgetThe Central Bank of Nigeria, Abuja, Nigeria

The Central Bank of Nigeria has asked state governments that do not have industry banks to facilitate the establishment of such to speed up industrialisation and economic development in the country.

The Assistant Director, Development Finance Department of CBN, Abuja, Mr. Babatunde Ogunleye, said this in Uyo while fielding questions from journalists.

He stated that the bank, with a mandate to finance the processing of raw materials and industrialisation of the nation, was better positioned to aid small and medium-scale enterprises.

He noted that it is not uncommon for indigenes of states that do not have the bank to go to the nearest state to present proposal or seek assistance.

Ogunleye, who was in the state for public enlightenment of the residents of Akwa Ibom on the activities of the CBN, said that if there was an industry bank in the state, the speed of doing business would be faster and cost-effective.

“You can easily work to the next street where there is industry bank, meet the manager, present your proposal and get considered, instead of maybe going to Calabar or any other nearer state; that is one of the biggest gains of having the bank.

“Another gain is the speed of doing business; those who are producing raw materials will quickly get their products evacuated and get paid.

“The bank here will get funded because payment will get to all these banks; all these things will amount to improving and increasing standard of living for citizens and government will make money quietly through tax revenue because if business and commerce move, everybody will be happy,” he said.

According to him, the organised private sector and associations are the right bodies to partner  government to ensure the industry bank is established in their states.

It was learnt that the sensitisation workshop was organised in all the states of the federation to acquaint members of the public with the activities of the CBN.

The three-day workshop with the theme, “Promoting financial stability and economic development” was attended by farmers, cooperative societies, business entrepreneurs, industrialists, market women, bankers, civil servants and government across the state.

A Senior Manager and Director of Consumer Protection Department of CBN, Sani Bako Mohammed, said customers had the right to information, choice, safety, redress, privacy and confidentiality and good service from any bank of choice.

He revealed that the Consumer Protection Department of the CBN had investigated 8,044 complaints out of which 354 complaints were against commercial banks and other financial institutions in the country.

He said that the CBN had successfully resolved complaints that involved N35bn between the banks and their customers.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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