BY SAM OTUONYE
Mr Emmanuel Okpanachi, an investment expert and the Managing Director/Chief Executive Officer, Dignity Finance and Investment Ltd., has decried the rate at which the Central Bank raised the cash reserve ratio (CRR) to as high as 50 per cent, maintaining that it keeps interest rates high and makes borrowing difficult.
Okpanachi, who spoke to select journalists at a dinner organized by his Alumni Association, Command Secondary School Kaduna, in honour of his recent promotion to the MD/CEO, in Abuja on Friday, stated that the high rate does not support businesses particularly the MSMEs and appealed to the government to make interest rates affordable to the common man.
He opined that the Nigerian financial ecosystem is complicated and needs more support from the government.
“You know the financial system is a subsector of the economy. Nigeria’s financial ecosystem is very complicated – you have the fiscal policies, you have the monetary policies. The financial system needs more support from the government. It is only in Nigeria that the Central Bank – you have what is called the CRR, and currently here in Nigeria CRR is 50 per cent- only in Nigeria it’s that high. What that means is that it makes the interest rate to be high. So for a common man who wants to borrow money but cannot – interest is too high. So, for me the CBN and Ministry of Finance should find a way where interest rate is affordable to the common man,” he stated.
The investment expert explained that once the interest rates are low, of course, businesses that are just starting, MSMEs and young people can access loans that they can repay over time so that the interest will not overblow their repayment.
Okpanachi, responding to the question on ease of doing business lamented the negative effects of the currently proposed tax reforms, stressing that they are not friendly to new businesses.
“I don’t think all those policies are friendly to new businesses – what is the profit margin – for MSMEs, what is the cost of infrastructure, cost of power – those things will not definitely in any way create good environment for businesses to thrive.
“I really think that we have a lot to do as a people, as Nigerians, as government. Governance should be done such that the objective should reach the business because you know in places like China and Thailand MSMEs are the greatest employer of labour. The reason why they can do such is because doing business in those climes is very very easy and friendly and the profit margin can be seen so they can employ a lot of people but here in Nigeria – I think we really need to think deeper to find out how we can create employment through these MSMEs.”
Mr Okpanachi, who is the national treasurer of the Association, was honoured at the event with some of his fellow Alumni who have distinguished themselves in their various careers through hard work. They include; Major General Sunday Makolo promoted from Brigadier General, Rear Admiral Gideon Kachim promoted from Navy Commodore, Rear Admiral Ifeanyi Okpala promoted from the rank of Navy Comodore, Mallam Ibraheem Musa, appointed Chief Press Secretary to the Governor of Kaduna state and Barrister Emoye Peters, who was elevated to the rank of Senior Advocate of Nigeria ( SAN).