A financial expert, Dr Samuel Nzekwe, has urged the Central Bank of Nigeria (CBN) to intensify efforts in reducing interest rate charged on loans, by deposit banks, to a single digit.
Nzekwe, a former President, Association of National Accountants of Nigeria (ANAN), made the call on Wednesday in an interview with the News Agency of Nigeria (NAN) in Ota, Ogun.
NAN reports that the CBN, in a circular on Aug.31, directed deposit banks not to pay less than 1.25 per cent in interest on savings deposit accounts.
The circular signed by the CBN Director of Banking Supervision, Mr Bello Hassan, said the implementation took effective from Sept. 1.
The circular said the interest rate would be negotiable, subject to a minimum of 10 per cent per annum of Monetary Policy Rate.
Recall that interest rate on savings deposit was 3.9 per cent.
Nzekwe, who commended the interest rate cut, said it would increase economic activities and employment opportunities in the country.
Nzekwe said that the CBN’s aim was to make more funds available for investment and discourage people from putting money in savings account.
“The apex bank policy is commendable because it is looking on how people would deploy or invest their funds in the economy to improve economic activities,” he said.
Nzekwe, however, called on the CBN to bridge the gap between interest rate of 12.5 per cent charged on loans and 1.25 per cent interest rate on savings deposit.
He also urged the Federal Government to create an enabling environment for businesses to thrive.
He said that an enabling environment would attract more investors and grow the economy.