New Telegraph 
…says earnings at variance with lending
As some banks continue to declare their annual profits in trillions of naira, the National President, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye, Esq., has said the unprecedented earnings were not commensurate with the expected lending to businesses for growth.
Oye, who made the declaration on Thursday, at the Editors’ Conference, taking place in Bayelsa State, said the country was battling with monetary policies that stiffle growth.
Advocating for new pathways for creating a robust and resilient economic future for the country, he said that high interest rates— peaking at 35-40 per cent—reflected a central banking system that appears disconnected from the needs of its populace and businesses.
According to him, “the Nigeria 10-Year Government Bond Yield reached an all-time high of 21.25 per cent in August 2024. The central bank’s high-interest regime, coupled with bond yields exceeding 20 per cent, has led local banks to prefer investing in bonds rather than supporting businesses.
“This trend discourages entrepreneurship and diminishes economic growth, as evidenced by a bank’s reported one trillionnaira profit in Q3’24, mirroring profits seen across other banks, without commensurate lending to businesses or support for industrial growth.
“This fundamental flaw in placing commercial bankers incharge of the central bank must be addressed.” On fiscal uncertainty, the NACCIMA boss said the ab – sence of clear fiscal policies as the country approaches the end of 2024 stifles business planning and investment.
He said: “Businesses are compelled to operate amid a fog of uncertainty, hampering growth and innovation. This lack of clarity means that companies merely react to new policies, leading many to relocate to more organised countries.”
