‘FG must reduce bank interest on deposit and loans to safeguard economy’

AN Elder in Council of a non-governmental Democracy Group, the National Movement for Positive Change (NMPC), General Adekunle Martins (retd), has called on the Federal Government to reduce interest rates on treasury bills and bonds, in order to encourage several independent and competitive business flow beyond keeping cash in banks.

General Martins stated this in an open discussion of the group recently to find solution to problems militating against the economical, structural and political growth of Nigeria.

Suggesting ways to address the galloping redress of the country’s economy and ensure stability for a period of years, General Martins advised the Federal Government to suppress interests on treasury bill.

He stated that because a lot of people who are investing in bills has caused those directly in the business including banks’ to keep their funds with the Central Bank of Nigeria (CBN) as treasury bills for certainty of more generous and father Christmas returns.

Consequently, this attractive interest rates will not allow local industries to grow because of inadequate funds/capital owing largely to high and unaffordable commercial banks loan interest rates averaging 27 to 30 percent.

He also added that external borrowing to pay interest on domestic loans may continue to increase Nigeria’s indebtedness until the country would not be able to repay her debts in no distant future, saying this “may result into further devaluation”.

Explaining better, Martins’ said “the interest rate adventure today has reduced money in circulation that almost all facets of the economy is groaning because money is not changing hands.”

Meanwhile, General Martins has again reiterated that the greatest solution to Nigeria’s problem is selfless leadership service to mankind and genuine commitment to serve the electorates by not seeing governance as a “profit making venture; political appointments or as chieftaincy titles and considering electorates as subjects or victims.”

He further added that “It is only when the political class change their orientation that solutions can be sought.” He said sometimes it appears as if they (political office holders) are self opinionated, oblivious of critical issues of employment and hunger that can be jointly debated to arrive at better solutions to the pains and aspiration of the people .”