PRESS RELEASE
CIBN REITERATES CALL FOR THE CREATION OF EDUCATION DEVELOPMENT BANK
The Chartered Institute of Bankers of Nigeria (CIBN) has reiterated its call for the creation and full implementation of Education Development Bank to facilitate the achievement of 21% budget ratio for education prescribed by United Nations Development Programme (UNDP).
Dr. Uche Olowu, FCIB, President/Chairman of Council, CIBN who made the call recently during a Stakeholders Engagement with President Muhammad Buhari, GCFR, President and Commander in Chief of the Nigerian Armed Forces stressed that the bank would manage all subsisting intervention funds set up toward ensuring education for all and enhancing its quality in the country.
According to the CIBN President, the establishment of the Bank would provide the platform for all the strategic stakeholders in the education sector to access short to long term loans at single digit interest.
The Institute expressed concerns on the erroneous public impression that banks are making huge profits at the expenses of the other sectors of the economy without any empirical evidence. Dr. Olowu further expressed the concerns of the banking industry on multiplicity of taxes by various governments which has continued to hamper their business operations and provisions of Land Use Act impacting negatively on their abilities to extend mortgage backed facilities. He therefore appealed for the urgent harmonization of the taxes to reduce the burden on the banks and review the Land Use Act to expressly state property and security rights and address the bureaucratic process occasioned by Governor’s consent.
The CIBN President acknowledged President Buhari’s political will and tenacity of purpose to rebuild the economy and address the security challenges in the various parts of the country and reaffirm the commitment of the banking and finance industry to towards ensuring a stable and secured financial system.
President Muhammadu Buhari who warmly received the CIBN Team told them that he was proud to note that Nigeria has the most vibrant , creative and innovative banking sector in Africa. Also, he commended the industry’s collaboration with the Central Bank of Nigeria (CBN) which has been a key anchor to his government’s food security programme.
The Nigerian President said he was aware of the challenges that hinder the banks’ abilities to lend to the real sector and explained that his government was also facing such challenges in the implementation of its various housing Programmes.
President Buhari therefore urged the state governments to assist to address the issues by simplifying and rationalizing land matters and promised to look into the other concerns of the industry.
He stated that he was proud to see the branches of Nigerian banks when he visit other African countries stressing “ i will ask all your members to continue to be great ambassadors of Nigeria as they expand within Africa and beyond”.
Thank you for using this release.
With kind regards
Nelson Olagundoye
Head, Corporate Communications & External Relations
