Financial analysts say the Nigerian government’s planned partial privatisation of the Bank of Industry, is a commendable development that will make available more funds for development of the economy.
The Chief Executive Officer of the Cowry Asset Management Limited, Johnson Chukwu, told Channels Television on Friday that the bank was limited in terms of funding due to the poor capacity of the government to provide funding.
He further said that the planned partial privatisation did not come as a surprise, as the bank had over the years showed signs of limited access to funds.
Mr Chukwu explained that the development would enable the institution attract private capital that could enable them expound their coverage area.
“The capital will enable them increase the number of customers that they can attend to. They are constrained by the fact that they cannot access private capital,” he said.
The head, Development Finance, Heritage Bank, Segun Akanji, said that the privatisation would open a vista of opportunities, empowering the institution to create wider access to knowledge and competitiveness.
“At the moment the finance that is needed to push other institutions is not available and the partial privatisation will make the funds available,” he said.
Mr Akanji pointed out that the government should not be involved in activities that involve raising money for businesses development in any economy, but should only be involved in the control and policy making that could empower the system to function well.
The planned partial privatisation is one of government’s efforts to make more funds available for individuals to get access to loan form the institution.