Friday, April 22, 2011

Bank CEO cautions FG over huge expendiure

Lagos - The Chief Executive of Ecobank Nigeria Plc, Mr Jubril Aku, has advised the Federal Government to be cautious over its huge expenditure.

Aku, Thursday in Lagos, said that the issue of fiscal dominance had become a problem in the country because of the structure of Federal Government revenues.

He said this was so because Nigeria depended largely on oil as source of revenue unlike in other countries where governments’ revenues were mostly from taxation.

Aku said that the huge volume of money injected into circulation from the monthly federal allocations had been a cause of concern to the monetary authorities.

He commended the Central Bank of Nigeria for effectively managing the challenges.

The bank executive said that the apex bank had directed commercial banks to hold more of government securities as part of managing the liquidity situation in the economy.

He commended the growth in the economy which, he said, was being mainly powered by the agricultural sector.

Aku said that his bank was taking a major role in financial intermediation in Nigeria and other West African countries.

He said that the bank, with affiliates in 37 African countries, was providing a platform of remittance of money across African states.

The bank chief executive identified key areas of business growth in Africa as oil and gas, ICT and agriculture.

He said that the bank had 243 branches across the country and was not particularly keen interested in acquiring any of the troubled banks.

Aku said that although the bank had initial discussions with some of them, the negotiations did not sail through eventually. (NAN)

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