Central Bank of Nigeria urged to review base rate

Mar 04, 2011

The Finance Houses Association of Nigeria is encouraging the country's central bank to review the capital base rate.

According to This Day, this is because financial firms operating in the nation believe the change will help to capitalise and reposition the sector.

Speaking to the publication, Chief Executive Officer of the Finance Houses Association of Nigeria Benn Nwokike explained that the current capital requirement is too low.

This means operators are unable to properly carry out large transactions and many people are unwilling to trust funds to the companies.

"All these reforms would enable us to re-tool our systems and processes," he continued, adding: "It would also restore confidence in the industry."

Mr Nwokike stated that more needs to be done within the Nigerian financial services sector to ensure it is properly regulated and working in a professional manner.

The next meeting of the Central Bank of Nigeria's Monetary Policy Committee is set to take place on March 21st and 22nd.