The Central Bank of Nigeria (CBN) has said that it would increase the Cash Reserve Requirement (CRR) if banks did not begin to increase lending to young graduates in Nigeria next year, even as it said it plans to unveil a new intervention fund targeted at young unemployed graduates.
Also, Lagos State Governor Akinwunmi Ambode said the state is set to commence the disbursement of the N25 billion employment trust fund which it said would be given out at less than three per cent interest rate.
The CBN Governor Godwin Emefiele made this known Thursday while speaking at the opening ceremony of the 7th Bankers Committee Retreat holding in Lagos, adding that the new scheme was asides the N220 billion Micro Small and Medium Enterprises Development Fund.
Emefiele said, “If you, the banks, refuse to support, your money that we would have released through the CRR, we will take that money and lend it through any channel that will give these young graduates jobs.
“There is no need to release the money to you and all you do with the money is buy Treasury Bills. It can’t continue.”
According to him, there was need for banks to work together with the initiatives of the apex bank to support employment generating businesses.
Emefiele, who noted that less than half of the N220 billion MSME Development Fund which was launched 2013 has so far been disbursed said, “We would need the support of the banks to begin to see how do we lower our risk acceptance criteria to give support to our young graduates.”
-Leadership