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A fellow of the Chartered Institute of Bankers (CIB) Asuquo Ekpenyong, has urged banks in Nigeria to plough back their huge annual profit after tax into financing micro projects in the micro sector of the economy.
Speaking to journalists at a celebration marking his 60th birthday on Sunday, the chairman and chief executive of the Davandy Group said that it has become apparent that for the economy to grow, the country must concentrate on the basics, which he identified as giving attention to the lower segment of the economy.
He said banks could provide micro credit facilities to enable the micro sector add value to the economy because of its capacity to provide huge employment opportunities for the teeming unemployed populace.
Ekpenyong decried the huge after tax profit declared by banks in the country, saying a national legislation should be made to stop it: “Myonly problem with Nigerian banks is that they pride themselves in making billions of naira profit after tax.
“If a bank can declare a profit after tax of N20Billion in a period of 12 months then it means it is really taxing the people, Ekpenyong declared.
He added: I think if I had the opportunity of being the head of government or the president of this country, I would have initiated action at the National Assembly that would have really dealt with banks and discourage them from declaring high level of profits within a period of 12 months.
“It is really not using its income the way it should be used and it means the pricing of its products is on the high side for consumers because I mean for a period of 12 months if you talk about a profit after tax of about 3, 4, 5billion naira for the mega banks a year, its alright, its very, very alright.”
Speaking to journalists at a celebration marking his 60th birthday on Sunday, the chairman and chief executive of the Davandy Group said that it has become apparent that for the economy to grow, the country must concentrate on the basics, which he identified as giving attention to the lower segment of the economy.
He said banks could provide micro credit facilities to enable the micro sector add value to the economy because of its capacity to provide huge employment opportunities for the teeming unemployed populace.
Ekpenyong decried the huge after tax profit declared by banks in the country, saying a national legislation should be made to stop it: “Myonly problem with Nigerian banks is that they pride themselves in making billions of naira profit after tax.
“If a bank can declare a profit after tax of N20Billion in a period of 12 months then it means it is really taxing the people, Ekpenyong declared.
He added: I think if I had the opportunity of being the head of government or the president of this country, I would have initiated action at the National Assembly that would have really dealt with banks and discourage them from declaring high level of profits within a period of 12 months.
“It is really not using its income the way it should be used and it means the pricing of its products is on the high side for consumers because I mean for a period of 12 months if you talk about a profit after tax of about 3, 4, 5billion naira for the mega banks a year, its alright, its very, very alright.”
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