Recession: No Body Want To Give Us Loan Again, Nigeria Cries Out


WORSENING economic situation in the country has begun to affect the financial credibility of even Federal Government as domestic lenders now feel reluctant to extend credit facilities to it.

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But the economic recession has persisted mainly because of application of wrong tools, advice and inadequate synergy between monetary and fiscal policies
According to Director of Policy at the Central Bank of Nigeria (CBN), Mr. Moses Tule who addressed members of the Chartered Institute of Bankers of Nigeria (CIBN), in Abuja Tuesday, people who were not knowledgeable in macro-economic management had disallowed experts to manage the nation’s economy.

He revealed that a recent effort of the government to raise funds fell flat when lenders declared a lack of confidence in government.
“They came back with only 25 per cent of what they wanted to borrow from the market- domestic market- saying we haven’t seen your fiscal policy; we haven’t seen the direction.
“We will not lend.  We will not buy your instrument.  ‘That is market speaking. They said no.   If you are offering to us at 20 per cent, we will not accept.”’
“What they are saying is ‘we have weighed the risks, they are higher and they said give it to us at 22 per cent or higher, if not we will not take.’  So for every N100, the government takes N78 to themselves and gives the public N22.”
Tule lamented that many people in government’s strategic positions were square pegs in round holes.
“Some came in as doctors into the macro-economic management and giving the tools of as medical doctor to advise on how to solve the problem of recession.
“Some came in as carpenters and they are using carpentry tools to advise on the problems of economic recession, some came in as engineers and they are using their tools to advise on how address economic recession.

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