By Emele Onu
CEO says penalties will compel banks to offer more credit
Lender plans to cut bad loans to 5% in three years from 10%
Nigeria’s Access Bank has welcomed the central bank’s decision to introduce penalties in a bid to stimulate lending, particularly to the country’s small and medium-sized businesses.
“If we don’t have that kind of thing as sanction coming from the central bank, what you will find is that most banks will not do it,” Herbert Wigwe, the chief executive officer of the Lagos-based lender said, referring to two directives issued by Central Bank of Nigeria in less than a week. “The initiative from the central bank can only help stimulate growth,” Wigwe said in an interview on Bloomberg TV on Friday.