CBN directs banks to accept jewelleries as collateral for loans

Central Bank of Nigeria (CBN) has called on financial institutions in the country to accept jewelleries and motor vehicle particulars as collaterals for loans from small holder farmers.

This is in a bid to make Agriculture and Manufacturing sectors the mainstay of the national economy.

Osita Nwanisobi, acting director, Corporate Communications, CBN, gave the charge at the in Lokoja, at a recent one-day interactive session with stakeholders from the Organised Labour and Media on the 5-year policy Trust of Central Bank of Nigeria (2019 to 2024)

In his paper with the theme “Understanding the CBN Vision, Mission, Mandate and its Recent Policies” as well as the “Five-Year Policy Thrust of CBN Governor (2019-2024), Nwanisobi appeal to Government to put in place proactive policy to diversify the economy, adding that oil sector is so fragile for any nation to depend and achieve growth.

Nwanisobi said that the CBN, saddled with the responsibility of managing the nation’s resources, the value of the Naira and ensuring financial stability among others had evolved various intervention strategies to diversify the economy.

The acting Director of Corporate Communications said the apex bank envisioned a non-sectional, and people-centred Central Bank in its quest to build a strong economy and create jobs on massive scale.

He said “As part of the bank’s policy thrust, it desired the economy to grow by double digits, reduce inflation to single digit, address youth unemployment, build a rubust payment system and increases flow of resources into critical sectors.

He stated that with myriads of challenges facing the country, the time to start the diversification is now, stressing that the CBN has adopted value chain financing to finance Agriculture.

“As part of lessons learnt from the #EndSARS Protests, there was need to enhance access to finance by smallholder farmers through the National Collateral Register where jewels and vehicle particulars could be used as collateral for loans.

“CBN was intervening in 37 areas before the global financial crisis. We need to work now, it is about time. Though seemingly late but we can start now. Oil will never ever get us to sustainable growth”, Nwanisobi advised.

On his part, Mr Issa Aremu, general secretary National Union of Textile, Garment and Tailoring Workers of Nigeria (NVTGTWN) and Vice President Global Industrial Unions, commended the 11th Governor of the CBN, Mr Godwin Emefiele for his policy thrust in providing interventions for the national economy.

“We must know where we are coming from, our present position and where we are going”, Aremu said.

He called on other agencies like SMEDAN, PENCOM and SMEs to take a cue from CBN to bring their visions and missions to public domain for evaluation.

Aremu said that the nation should as much as possible produce what we consume and consume what we produce, expressing gloomy pictures for the oil sector.

“When we talk about Oil is not a curse it could be a blessing if we diversify from exporting crude to refining crude.

“There was a time in Nigeria where our Refineries and petrochemicals are working optimally with its 114 derivatives from crude oil. Not just petrol. As it is now, we are the only OPEC country without a functional refinery”, he lamented.

Mr Onu Edoka, chairman of the Nigeria Labour Congress in the state also tasked the CBN to increase its monitoring of commercial banks operations alleging that fraudulent activities are rampant in the sector.

Edoka who alleged to have lost about N1.7 million to fraudsters who tampered with his bank details recently in Lokoja urged the CBN to wield the big stick against commercial banks who collude with fraudsters to defraud their customers.

Earlier in his opening address, Mr Ahmed Sule, Kogi state Branch Controller of CBN gave a brief history of Lokoja and assured that the state is safe in view of the huge investment in security by the state government.