The high
returns on treasury bills and Federal Government bonds are having negative
effects on productive activities in the country.
Mr Muda
Yusuf, Director General, Lagos Chamber of Commerce and Industry, said this
while assessing President Muhammadu Buhari’s two years administration at the
News Agency of Nigeria (NAN) forum in Lagos on Sunday.
Returns on
treasury bills range from 15 per cent to 18 per cent depending on their tenor.
Yusuf said
the high returns were discouraging investors from putting their money in
productive activities considering the risks and challenges of the business
environment.
The director
general said that many investors preferred investing in treasury bills and
bonds because they were not risky, tax free and with high returns.
According to
him, commercial banks that are supposed to be lending to the manufacturers are also
investing in treasury bills.
He, however,
advised promoters of Small and Medium Enterprises (SMEs) to make their
businesses more attractive to secure bank loans.
Yusuf said
only few SME operators could access bank loans because of the stringent collateral
requirements, adding that even the N220 billion intervention fund from the
central bank was also inaccessible because of the requirements.
He said that
there was the need for the country to look inward by patronising said locally
made products and stop importing foreign consumables to stimulate economic
growth.
0 Comments