Suru Group Boss Tasks FG On Treasure Bill Interest

The group managing Director of Suru Group of Companies, a conglomerate that deals with banking, real estate, hospitality, construction, power generation and manufacturing among others, Edward Akinlade, has appealed to the Federal Government to cut down the sales of treasury bills per bond from 17 per cent to 5 per cent in order to boost business development in the country.

According to him, bank directors in the country now prefers to go for Federal Government bond which always come with guaranteed interest return than lending out money to individuals with risk. This, he said, is hindering the growth of small-scale businesses in the country.

“Treasury Bill rate as it is now is creating an opportunity for banks to harvest risk-free returns from TBs at an average of 17 per cent, instead of giving out loans to economic agents.”

“All the banks in Nigeria are not stupid nor fools. Why should they lend money to a businessman at 17 per cent, worrying about non-performing loans, worrying about managing the account when they can give money to the Federal Government and wait till the end of the year to collect their 17 per cent? The little money left that we have in Nigeria that should be feeding small businesses in the country is now what the banks are using to buy FG bonds,” he noted.

The accountant, therefore, called on the Governor of Central Bank of Nigeria, Malam Sanusi Lamido Sanusi and his compatriot, the Minister of Finance, Dr. Ngozi Okonjo-Iweala to correct the abnormalities.

“I feel the nation’s economy is being mismanaged. Sanusi and Iweala should explain to Nigerians why the Federal Government bond should be more than five percent per annum.”

Edward, who is the chief executive of a fledgling micro-finance bank in the country also observed that the government needs to restore confidence in the stock exchange as many Nigerians are now afraid of what will happen next in the sector due to change of policies and deregulation as seen in the last few years.

—Henry Ojelu