Senate to Intervene on High Interest Rate by Banks

• May peg interest rate if banks refuse to introduce affordable rate

The Senate President, Dr. Bukola Saraki Sunday said the Senate will discuss the issue of high interest rates charged by commercial banks with the Central Bank of Nigeria.
In an interactive session with newsmen in Ilorin, Saraki said the issue may be subjected to debate this week.
He said that this has become necessary since high interest rate was not the best for a nation in recession and targeting growth.
News Agency of Nigeria, NAN, reported that the debate will be in form of a round table discussion with the CBN and other commercial banks.
Saraki described as unfair for the commercial banks to be making astronomical profit while companies were losing money and sacking staff.
He said, “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.”
Saraki said what the Senate wants to do will be to see that the commercial banks introduce an affordable rate, but added that if they refuse, the Senate will be forced to peg the interest rate.
He said that banks were charging high interest rates having tied their assets in government securities and getting between 18 and 19 percent.
He said, “they will tell you they are doing business, but in any business, there must be social responsibility.
“I promise Nigerians that we will find a solution to the high interest rate.”

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