Central Bank of Nigeria has expressed concerns over the poor repayment of loans provided by the bank to manufacturers.
According to the Deputy Governor, Financial System Stability Directorate of the Central Bank of Nigeria, this might affect the sustainability of the bank’s initiatives.
While stating the importance of the interventions to the Nigerian economy, she urged beneficiaries of the CBN loans to pay back to enable others to benefit from the interventions.
“In recent years, the efforts and interventions of the CBN have ushered in a lot of growth and impact. It helped us combat extreme poverty, food insecurity and grow the agricultural sector and manufacturing base.
“But it also brings in considerations and we are well aware of these considerations. Of course, the most obvious is the risk of poor recovery rate on some of the loans we give out, which may be a burden on the institution, but most importantly may affect the sustainability of our initiatives.
“We also try to empathise with all stakeholders that all of these are loans and not grants. It is important you pay back so that others can also get the same opportunity.”
Source: CBN worry over poor loan repayment by manufacturers – StocksWatch (stocksng.com)