Tuesday, October 27, 2020
Home Business 2020: Economist tasks central bank on credit expansion policies for private sector

2020: Economist tasks central bank on credit expansion policies for private sector

An economist, Prof. Sheriffdeen Tella, on Friday urged the Central Bank of Nigeria (CBN) to pursue policies geared toward credit expansion for private sector in 2020.

Tella, Professor of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun said this in an interview with newsmen in Lagos.

He urged the CBN to put in place policies that would force banks to make sure remittances come in hard currency rather than allow bank branches and correspondent banks to keep the foreign currencies with them abroad while beneficiaries were paid naira at home.

According to him, this will assist the CBN in having foreign currencies to meet demands for industrial inputs.

He also stressed the need for the apex bank to review its policy on public participation in treasury bills.

“It is the public that should buy treasury bills to mop up liquidity from them while banks are directed to lend to private sector with punishment for failure to do so,” Tella said.

On capital market, he said that expansion of the economy and improvement in capacity utilisation and productivity would force manufacturing firms to seek expansion fund from the capital market.

The economist called for collaboration between Securities and Exchange Commission (SEC) and CBN to review listing requirements and develop new capital market instruments to attract unlisted firms to improve activities on the Exchange.

He added that SEC needed to see how to take advantage of the new surge in financial integration with adoption of eco currency to attract participants from West African sub-region.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

FOLLOW US:

6,985FansLike
1,458FollowersFollow
553SubscribersSubscribe

Most Popular

Insecurity: Buratai meets top commanders

The Chief Of Army Staff, Lt. Gen. Tukur Buratai, is presently holding a meeting with Principal Staff Officers and top army commanders...

English in Twos: Episode 21

By Bashir Jammaje Education is the most powerful weapon, Nelson Mandela says, which we can use to change the...

EndSars: NECO postpones examination indefinitely

The Governing Board of the National Examinations Council (NECO) has indefinitely postponed the on-going 2020 Senior School Certificate Examination.

#EndSARS: FG sets up N25bn youth fund — Minister

The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Saturday, said the Federal government has created a N25bn youth fund...