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Sanusi seeks autonomy for finance institutions


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Nigeria

Image:The Governor, Central Bank of Nigeria, Mr. Lamido Sanusi

The Governor, Central Bank of Nigeria, Mr. Lamido Sanusi, has said that Development Finance Institutions in Nigeria need to be given operational autonomy to enable them promote real sector activity.

Nigeria currently has six DFIs. They are the Bank of Industry; Federal Mortgage Bank of Nigeria; Nigerian Export-Import Bank; Bank of Agriculture; Infrastructure Bank; and National Economic Reconstruction Fund.

Sanusi, in a keynote address delivered at the third Public Private Partnership stakeholders in Abuja, explained that the DFIs operating in Nigeria needed to be repositioned to enable them address market failures as well as complement government’s financing of key sectors of the economy.

The governor, who spoke on the theme, “The role of DFIs in infrastructure development,” said that the challenges facing these institutions had made it imperative for the autonomy to be granted.

He listed the challenges as poor corporate governance, low capitalisation, inadequate skilled manpower and poor business models, among others.

He said, “DFIs in developing countries exist traditionally to address market failures and as a complement to government resources and market financing.

“In addressing infrastructural challenges, DFIs, in addition to their existing mandates, seek to enable expansion of already existing pro-poor infrastructure and act as catalysts for accelerated industrialisation, economic growth and human resource development.

“Some of the major challenges faced by these institutions include poor corporate governance, low capitalisation, inadequate skilled manpower and poor business models. In order to be repositioned to perform the role envisioned for them, the DFIs need to be granted operational autonomy.”

Article Credit: Punch Newspaper

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Updated 6 Years ago
 

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