BoI reiterates move to de-risk businesses
Olagunju said this in Abuja on Monday, at the National Insurance Conference 2016 with the theme, ‘Expanding national resources and infrastructure in challenging times’, that it is time the country explored the options of investing in insurance in order to know where to pitch its tent.
Olagunju said industrialization of the country and overall risk management should have gone beyond lip service and playing politics with considering the fact that countries that were solely dependent on oil back in the eighties have since gone past that level and now have other sources of income while Nigeria is yet to find its feet on other sectors other than oil.
“In order to achieve minimum risk in business endeavor across the country and for Nigeria to have multiple sources of income and move away from its monolithic economy which stakeholders said had made the country complacent, it is necessary to assist the industrial sector”, he added.
Citing Mexico and the United Arab Emirates whose economies were solely dependent on oil in the eighties, Olagunju said Nigeria ought to have moved with the tide which would have saved it from the current financial crises.
His words: “We have played politics with the lives of our children. Mexico, Nigeria and UAE relied on more than 80 percent of oil in the eighties, they have since moved away from oil but Nigeria is still dependent on oil. We are now beginning to take care of our children even after graduation because they cannot get jobs”.
He said the bank will try and much as it can to make loans available to SMEs and big business adding that there is no way collaterals can be ruled out entirely due to the peculiarity of the environment.Olagunju said the bank’s non performing loan as at last year stood at 3.8 percent, this he said is due to the policies on loans but in place by the bank.