An Apparently Frustrated Audu Ogbeh Says Bank High Lending Rates May be Good For Only Cocaine Production

That interest rates are high in Nigeria is no news. Even before the current economic recession, prime lending rates were as high as 18%. Today it is over 20% and it’s unlikely to come down anytime soon. If it’s maximum lending rate, then we may be looking at 24%.
While some of us understand why banks charge this high, some people do not. Even those in power who actually should know better, perhaps do.. or well interpret it differently.

Nigeria’s Minister of Agriculture appears to be one person in power who is fed up with all of this and has lashed out at banks and their high lending rates. According to him, the interest rates banks charge can only be used to finance cocaine business. That’s some interesting interpretation. Here he is on quote.

“We still have trouble finding lenders to farmers; the banking sector still considers agriculture a zone of high danger.

“So the small farmer or big farmer has immense difficulties accessing credit.

“And so the farmer in Nigeria finds it extremely difficult to farm like other Nigerians do elsewhere.

“Interest rate in agriculture across the globe average three per cent, here it still stands at 25 per cent and above.

“That kind of interest rate may be good for producing cocaine but certainly not for producing Okra, rice and beans, yam and cassava.

“So we can do it right, and if we can get it right trouble starts from the farm gate,’’ he said.