The Central Bank of Nigeria's withdrawal of 50 per cent of government funds from commercial banks, is good for the economy, says Leonard Dilkon, former Chairman, House Committee on Finance.
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Dilkon in Jos on Friday said that the step was "very good'' as commercial banks would now begin to invest in wealth and job yielding ventures that would stimulate growth.
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Commercial banks had kicked against the policy, insisting that such measure would "spell doom for the economy''.
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The banks, in separate reactions, had argued that the step would raise interest rates and make lending very difficult.
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But Dilkon, who is the Executive Chairman, Hamtul Press Ltd, a Jos-based large scale printing outfit, argued that the banks had not helped the economy much as they "merely collect monies from local, state and federal governments''.
The hailing is really worth it cos it was really a bold step taken by the central bank of Nigeria. Very good move from them I must say.