The Central Bank of Nigeria is set to increase money in circulation with the sum of N500 billion to stimulate credit facilities by the commercial banks.
The Bankers Committee said the proposed Assets Management Company (AMC) will be floated with a capital base of N250 billion, which will be contributed by the CBN and the Federal Ministry of Finance in the ratio of 60 and 40 percent.
Oni explained that the said N500 billion will enable banks grant credits for the execution of viable projects, while the N250 billion will enable the AMC to buy up some of the bad loans from the banks.
He said the committee was satisfied with the current economic growth level achieved without the oil sector revenues, adding that if sustained, the future economic development of the country in the first quarter of 2010 is bright.
The committee noted with satisfaction the performance of the economy, which grew by more than seven percent.
“This is based on the fact that the growth we have actually recorded was done without the oil sector. It was actually done by the non-oil sector, particularly the agriculture.
The rise in oil price, rise in oil production and the relative peace in the Niger Delta is an indication that the economy will continue to grow and the committee noted that the banks will continue to support the Federal Government to grow the economy”.
Oni also said the committee was satisfied with the CBN’s efforts to see that the AMC was set up, saying that the bill will soon be sent to the President, who will forward it to the National Assembly to pass it into law.
The committee noted that the role of banks in the economic development of the country is very important and assured that given the banks’ unique position to push the economic growth, the banks had resolved to contribute in fixing the infrastructure, especially power generation.