The Executive Programme Director, Self-Reliance Economic Advancement Programme, (a micro-finance institution), Mr. Olatunde Oladokun, has said that the depreciation of the naira is negatively affecting financial institutions, business transactions and economic development of the country.

The naira has continued to decline, prompting some local currency dealers to fear that it may depreciate to N163 to a dollar during the week.In an interview with journalists during a summit organised by SEAP in Ilorin on Wednesday, Oladokun said the  naira would improve with growth in national productivity.

He added that there was the need to provide good infrastructure and enabling environment to assist industries grow.

Oladokun said, “Our economy is based on buying and selling and consumption. We are not increasing in production. There are great challenges in production as result of high operation costs.”Except we are able to encourage cottage industries and provide good infrastructure, our currency may not appreciate. But with good infrastructure and improvement in national productivity, the naira will appreciate.”

He said SEAP had invested much in housing and mortgage schemes and development of small and medium enterprises. He added that the microfinance institution had also been assisting farmers in  the poultry and piggery sub-sectors.

According to him, these interventions have positively affected economic and financial growth of the beneficiaries.

Oladokun appealed to the Central Bank of Nigeria to assist microfinance banks with more enforcement framework, adding that there were dubious customers who collected loans without repayment.

He stated that there should be a mechanism where loan defaulters were severely punished to serve as deterrent to others.

Oladokun commended the CBN’s cash-lite, e-payment, e-transfer policies, but said there was the need for more enlightenment on these policies especially to the member of the rural communities to assist them appreciate and comply with the innovations.

Oladokun said,”They need to give strong backing to MFBs because many of them do not have access to funds.

Source: Punch/Success Nwogu