The Senate on Tuesday raised the alarm that an unnamed cartel within the system had taken over control of Nigerian commercial banks, to the detriment of the economy as well as small and medium scale businesses operating in the country.
The apex legislative chamber also, came hard on the commercial banks in the country and the Central Bank of Nigeria (CBN), accusing them of strangulating Small and Medium Enterprises (SMEs).
Deputy Senate Leader, Senator Bala Na’Allah, who made the claims, while contributing to a motion, “The dire need for a Stakeholders Round Table to address increasing interest rates in Nigeria”, sponsored by Senator Rafiu Ibrahim, wondered why the interest rates were outrageously high, despite the fact that the country was yet to get out of the economic recession.
The President of the Senate, Senator Bukola Saraki, while supporting the motion, also gave credence to the claims, criticising what he described as the twin evil of interest and exchange rates.
He said that it was unreasonable for companies to continue to lay off staff, while declaring huge profits annually; assuring that the Senate would step in and ensure that the right thing was done.
Saraki said: “There has always been the twin evil of exchange rate and interest rates. We cannot live in a country where companies are folding up, yet organisations are declaring mega profits. The committee should swing into action. Whatever comes of the committee’s work, we must see to it that it is implemented to the fullest by the Senate.”
