Lagos State House of Assembly on Monday urged the National Assembly to compel the Central Bank of Nigeria to strengthen the monetary policy by using the interest rate to improve and stabilise the economy.
Mr Gbolahan Yishawu (ACN -Eti-Osa II), who moved the motion at a plenary session in Ikeja, explained that the current interest rate should be reduced to allow small businesses to thrive.
Yishawu said that any attempt to allow the current interest rate regime to continue would be detrimental to the economy.
?‘’ The treasury bills rate should be reduced to discourage banks from taking money to CBN. rather than lending them out.
‘’The cashless policy should be reviewed across the country with effect from 2013 and the telecom sector to provide cashless information on their networks to assist the public.
?‘’Treasury bills with a return of 14 per cent should be discouraged. Treasury bills should not be competing with real sector.
Mr Oluyinka Ogundimu (ACN-Agege II) in his contribution, said micro finances needed to be critically examined, and suggested the need to reduce the Open Market Operation, to reduce the money in circulation.
‘’The high interest rate should be urgently addressed, so that it does not affect investment as we experience now,’’ he said.
Ogundimu added that some specialised institutions like Bank of Industries and agriculture bank should be empowered to increase their capacities.
He said there had been too much dependence on oil, which was part of the problems affecting the economy.
The lawmaker added that the crude had been overburdened.
Mr Ajibayo Adeyeye, the Majority Leader, said most of the banks in the country would not lend at short term because the fund was for long term.
Adeyeye said, “we need to drive the economy in such a way that the less privileged will have access to credit''.
‘’The Federal Government should strengthen the micro finance banks, rather than killing them as we can see now,’’ he said.
Mr Razaq Balogun, the Chief Whip, in his contribution, said banks pampered those who wanted to borrow in billions, while those who needed N200,000 for small businesses found it difficult to access loan.
Balogun said the current interest rate was between 29 per cent and 30 per cent in a country that was battling with electricity problem and other infrastructure decay.
?‘’Policies are expected to be driven by the peculiarities of a country rather than dictates from the World Bank
‘’When you have a policy like this, I see a country that is going down. Things should not be allowed to continue this way because ther portend danger.''
Mr Kolawole Taiwo, the Deputy Speaker, who presided over the proceedings, said that micro finance in the country ought to be done “in our own style''.
-Taiwo added that CBN policies were anti-people since the state controlled 52 per cent of the nation's economy.
Taiwo said Nigerians jumped to ‘’financialism’’ and failed to practise industrialisation as was done in the U.S.
“CBN policies are anti-Lagos since the state controls 52 percent of the nation's economy,'' he said.
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