RECESSION: Bankers committee shuns real sector, to focus on agric

The Nigerian Bankers Committee may have resolved to pay more attention to the agricultural sector as a more positive approach to achieve an early recovery of the country from its current economic recession.

This is against focusing greater attention on the manufacturing sector as obtained in the past.

The understanding is that, this is wiser given the fact that many of the items produced in the country are being priced out of market by the ones from outside its shores.

Therefore, the need to support the agric- based firms and allied industries could help Nigeria survive the recession earlier than the 2018 being projected.

Thus, the Committee has recommended that 60 per cent of profit after tax of all banks in Nigeria be channeled appropriately to the new areas as identified.

In its resolution made available to Ripples Nigeria on Monday, it recommended that as from the first quarter of 2017, special funds be created to serve as equity holding of all tax deductibles from banking services to be held in trust for the Committee through the agric-related outfits.

“We believe that if food security is guaranteed in the country, more than 70 per cent of the recovery effort on the economy would have been recorded.”

“By this token, the Nigeria Deposit Insurance Corporation (NDIC) will work closely with the CBN to set up another means of cleaning up banks’ non-performing loans, which is currently over whelming the Asset Management Corporation of Nigeria (AMCON),” said CBN Governor Godwin Emefiele.

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He said a new understanding was being worked out for proper channeling of the expected funds to the real agricultural practitioners to avoid failure.

An official of the Committee said the programme was being envisaged to start yielding results by March when an estimated N30 billion would have been set aside for the sector.

He said his organization had recognised the potentials in agriculture, as complement to the manufacturing and SMEs.

According to him, Nigeria needs rapid growth, job creation and poverty reduction to achieve the needed economic expansion.

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