‘We can’t bear SME risk alone’ commercial banks cry out
By Patience Ikpeme
Commercial banks have called for deliberate action from banks and development banks in Nigeria to support small and medium-sized enterprises (SMEs) and promote economic growth.
The Chairman, Body of Bank CEOs and Managing Director of Zenith Bank Mr. Ebenezer Onyeagwu made this call at the ongoing 16th Annual Banking and Finance Conference in Abuja.
Onyeagwu argued that commercial banks should not be solely responsible for financing and supporting SMEs, as this would not lead to progress and development. He suggested that “development banks should also share the risk and support SMEs, as a collective effort is needed to grow these businesses”.
The Zenith Bank MD then highlighted the concerning balance of payment in Nigeria, where the country is importing more than it is exporting. He emphasized the potential of the domestic market and expressed concern over Nigeria becoming reliant on foreign manufactured goods, leading to job losses and employment promotion in other countries.
Onyeagwu lamented that Nigeria has the largest economy in Africa, but it is not experiencing the highest growth rate. The World Bank data he said suggests that the population is growing faster than the economy, leading to a negative impact on living standards and contributing to poverty.
He noted that South Africa is ahead in terms of economic growth and called for a deliberate effort to improve the economy.
Onyeagwu is also worried about the stock exchange in Nigeria, suggesting that it is vulnerable to radical investors who may manipulate it. This implies a need for measures to protect the stock exchange and ensure its stability.
