This Day (Lagos)

2 October 2009

Nigeria: Meltdown - Nwuche Wants More Funds For Banks

Calabar — As companies groan under the global economic meltdown, former Deputy Speaker of the House of Representatives, Mr. Chibudom Nwuche, has called on the National Assembly to pass an Act that will inject more funds into the banking sector and the stock exchange.

Addressing newsmen after the Annual General Meeting (AGM) of Mass Telecom Innovation (MTI) Plc., in Calabar, Nwuche, who is also the chairman of the company, hailed the intervention of the Central Bank of Nigeria (CBN) in injecting funds into the banking sector.

He, however, said the intervention was not enough to revitalise the economy and create employment for the people.

He noted that governments all over the world have taken actions to inject more funds into their economy to mitigate the effect of the meltdown and speed up recovery and called on Nigeria to borrow a leaf from them.

His words: "The world over, governments have intervened in this crisis. For instance, in America, the US Congress passed an Act that injected $700 billion into the economy. In Britain, their Parliament has so far put about £250 billion into the economy to support the banking sector. Ours should not be different.

"If you check carefully, those that have lost the most are the poor people, the masses, students, market women, and workers who have confidence in the stock market and who put their life savings in the stock market. Government must find a way to reflate the banks and support the stock market to revive. That will now begin to create employment.

"That is also why Parliament should see the CBN action as a catalyst to prepare a more robust package for passage in the Assembly to reflate the economy, to develop infrastructure, to assist the banking sector and the stock exchange to revive."

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