Harboursandport.com: Lagos--- Chairman House of Representative Committee on Banking and Currency, Jones Chukwudi Onyereri, has warned of impending crisis in the
banking sector over non-performing loans which it says is worse now than the
one witnessed in 2008 and 2010.
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| Chairman House of Representative Committee on Banking
and Currency, Jones Chukwudi Onyereri
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Onyereri, who disclosed this in Lagos recently said there is
need for the banking supervising agencies, Nigeria Deposit Insurance Corporation, NDIC and the Central Bank of Nigeria, CBN to
forestall the situation degenerating into a crisis.
He stressed the need for banks not to give loans without the
relevant security and above the acceptable level. He noted that the House on
its part has amended the Banking and Other Financial Institution, BOFIA Act
because of the involvement of insider abuse which is against the Act.
According to him, “I will not speak for the banks, the truth is
that there is high level of non- performing loans which is worse than what we
had in 2008 and 2010 and to me, it is just a matter of supervision.
“So the banking supervision of different department of NDIC, CBN
will need to sit up but primarily it is the Central Bank because they are the
main drivers, the main regulators to look at this because you don’t give out
loans when you do not have proper securities, you do not give out loans beyond
the acceptable levels.
“Especially when it comes to insider abuse because that is the
major cause which is against the war-fare Act and that is why we have gone
ahead to amend war-fare Act in order to forestall further crisis.”
He also frowned at the predominance of bad N100 notes which he
noted is not good for the image of the country. The House Committee Chairman
called of the CBN to step up efforts to deal with the issue.
Onyerere, who represents the largest constituency in the
country, Nkwere, Isu Nwangele Ujaba, federal constituency, Imo state, called on
security agencies to arrest those involved in the sale of new naira not at
parties and other social gatherings.
“There could be so many factors responsible for dirty N100 notes
but the point that must be made is that the Nigerian Security Printing and
Minting Company, NSPMC keeps printing new notes and once the notes have been
printed, it cannot put to use because they are not yet currency until it gets
to CBN.
“So we directed that to CBN because we are not aware that they
produce quite a picture of this great organization. But the normal excuse that
the CBN would give is that people keep mutilating the naira note which I can
understand because of our non maintenance culture. So for us as a parliament,
we have told them in very clear terms that this is creating very bad image for
the country.
“It does not speak well of us that our currency smells, very
dirty and very mutilated. So whatever it is they need to do either by way of
looking at the materials being used in production, either by way of public
education, educating people how to manage the Nigerian currency, use of
wallets, making sure that our naira notes are not folded, making sure we don’t
spray our money at public functions. There are so many things that need to be
done for people to learn how to manage our currency because that is the easiest
way out than thinking of printing more naira notes which is expensive.”
On the sale of the nation’s currencies he said, “Without
speaking for CBN, it is an illegal act and I think the security agencies must
be up whatever they are doing in respect to that because they are not hidden. I
hear they were seen at wedding parties and other social functions, so they can
do a decoy and apprehend the culprits. It is an illegal act to sell Nigerian
currency.
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