The Bankers’ Committee has unveiled possible approaches to stimulating the growth of Nigeria’s economy.

The Managing Director of Guaranty Trust Bank, Mr. Segun Agbaje says stability in the exchange rate had been sustained overtime and that the macroeconomic indicators were stable and positive, insisting that the stability had created other opportunities but wondered how the economy could be more stimulated.

He said, “One of the things we always hear as bankers is that the macros are stable but how do we now stimulate the economy? He said.

Agbaje noted that the MPC meeting and the Bankers Committee was committed to it and disclosed that commercial papers or bonds would be issued with its guidelines coming out very soon.

“The aim is in two folds: to stimulate certain sectors which would start with agriculture and manufacturing and allow people to do capital expenditure (CAPEX) which is more of a long term. It would give people single digit interest rate loans where bonds could go as far as 10 years,” he said.

“These are not short term loans; they are long term loans of seven-year, two-year moratorium on principal. It would probably be the first time in the history of this country where manufacturers would be able to take fixed interest rate loans for seven years.

This means they would be able to plan” he added.

Agbaje said the volatility that they fear for all kinds of risks would be taken out, since in his opinion, these are very laudable steps in improving and growing the economy.”

The Director of Banking Supervision of the Central Bank of Nigeria (CBN), Mr Ahmad Abdullahi, told newsmen  after a Bankers’ Committee meeting in Lagos that stability in the exchange rate had been achieved hence the need to shift focus.

Abdullahi said that stability in the exchange rate had been sustained while Gross Domestic Product (GDP) growth was higher than 2017 record, adding that despite capital reversals in the nation’s capital market, the capital outflow in the economy was far less, compared to many emerging economies. Abdullah said it was a sign of high confidence in the Nigerian economy.

“We are happy with the developments in the economy generally,” he said.

Mrs. Yemisi Edun, Executive Director, Finance, FCMB argued that the Cash Reserve Ratio (CRR) taken from banks would be positively deployed to grow the real sector as well as the agriculture sector of the economy. She said the ability of banks to access funds would be positive development for the economy because it would be coming at single digit rate.

Edun said, “For now, it would be channeled to agriculture sector and manufacturing but it is for growth, expansions and enhanced creation of jobs.

She said the idea was to have job creating activities in the economy and also to bring interest rate down.