Senate To Meet With CBN Over High Interest Rate

Senate President, Bukola Saraki during an interactive session with the journalists across the federation assured Nigerians that the Senate will look into high-interest rates charged by banks in the country.

“This week we will debate it, have a round table discussion with the Central Bank of Nigeria and other commercial banks and talk frankly to ourselves,”

“Hopefully, with the stability of the foreign exchange, we can now begin to address the issue of interest rate.

“There is no business that can make money if you are borrowing at 28 percent, it cannot work,” he said.

According to Saraki, the decision of the banks to increase their rates is not in favour of the economy which is just recovering.

According to him, the banks are charging high-interest rate because they have tied their assets in government securities and are getting 18 to 19 percent.

“They will tell you they are doing business, but in any business, there must be a social responsibility.

“I promise Nigerians that we will find a solution to the high-interest rate,” Saraki assured.

According to the News Agency of Nigeria (NAN), the Senate president also said the upper chamber may limit the amount banks can put in government securities and channel the rest to areas like the real sector.

He also expressed concern over the status of local governments in the country, saying virtually all local councils lacked the required finances to carry out their statutory obligations.