Dr. Samuel Nzekwe, a former President, Association of National Accountants of Nigeria (ANAN) has advised the Central Bank of Nigeria (CBN) to drop the interest rate on loans to single-digit to cushion the effects of COVID-19 pandemic in the country.
Nzekwe gave the advice in an interview with the News Agency of Nigeria (NAN) in Ota, Ogun on Monday.
The former ANAN boss said that the advice became necessary so as to kick-start the economy once again due to the pandemic.
“Loans should be made available to people and investors because most businesses have been badly hit by the COVID-19 pandemic.
“The apex bank also needs to relax some of the loan conditions so that more people can have access to funds that would boost the nation’s economy.” he said.
The accountant noted that lower interest rates would trigger domestic investments and production which would automatically create jobs and wealth for the people.
Nzekwe explained that many investors had lost their businesses while some people would lose their jobs as the impact of the COVID-19 could not be quantified.
He called on the Federal Government to intercede on behalf of people owning banks by assisting them in rescheduling such loans.
Nzekwe further said that those loans should be rescheduled in such a way that would be comfortable for the debtors to pay back.
He noted that it was a very difficult time for business owners because no one envisaged that the pandemic was coming.
Source: Voice of Nigeria