Nigeria’s commercial banks are not equipped to give long term loans yet.
The Nigerian Central Bank has said none of its over a dozen commercial banks has the capacity to give long term loans.
The Head of Corporate Communications of the Bank, Ugochukwu Okoroafor, said on Thursday in Lagos that the nature of the banks’ funds would not allow such transactions.
“By the nature of their funds, commercial banks for now cannot give long-term loans.
“Until depositors begin to offer long-term deposits, the banks will not be in the position to give long-term loans.
“The banks are careful of long-term transactions in case the depositors call for their deposits,” he said.
Mr. Okoroafor urged those seeking long-term loans from commercial banks to approach other financial institutions.
He said that any bank that offered a long-term loan would be taking a risk because depositors could come for their deposits anytime.
The spokesperson said that banks must be sufficiently liquid to meet their obligations.
He added that any bank that lacked enough funds might be in trouble should the depositors call for their money.