Phtoto: Sun News Publishing

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President and Chairman of Council of the Institute of Chartered Accountants of Nigeria, Dr Richard U. Uche, has described as unhealthy, the reported cases of rising interest and lending rates in the Nigerian economy, stressing the development was uncalled for at this stage of the nation’s economic reform process.

Dr Uche, who spoke recently at an exclusive interview with Daily Sun in Lagos, expressed concern that if the report was true, then it does not portend much good to the nation’s economy, because the real sector currently needs the resources from the banking industry to sustain the tempo of growth recorded over the last few years.

The ICAN president, however, noted that regardless of the interpretation that may be given some of the recent development in the economy, Nigerian banks have been doing very well in the economy, judging by the quality of service and support extended to the business community since the consolidation programme.
Said he: “ But I do know that we are on the right track since the consolidation of banks and insurance companies, as we have seen so much order in the banking industry.
Banks are now able to pool resources that can enable them lend to the real sector, contrary to the scenario prior to the consolidation”.

According to Dr Uche, only a fraction of the banks actually supported the real sector in the past, but t the picture is now changing today, with more banks now able to mobilize resources in support of the real sector, pointing out that the economy needs the support of the banking sector to grow.
He said that the industry now has a lot of critical mass among the banks to lend to real sector operators to improve the economy.

It could be recalled that the banking community was recently alarmed at the spate of rising interest and lending rates in the banking industry, following the Central Bank’s plan to harmonise the accounting year of the banks.
With the announcement, banks started recalling their funds placed with other competitors, to shore up their position before the regulatory authorities.