The National Association of Small and Medium Enterprises have appealed to the Federal Government to use the new Development Bank of Nigeria to check high lending rates by banks.
Eke Ubiji, the Executive Secretary of NASME, made the appeal while speaking with the News Agency of Nigeria on Monday in Lagos.
According to him, the bank should operate a single digit interest rate to spur economic growth, job creation, poverty alleviation and equitable development.
Ubiji said that the establishment of the bank was long overdue as there were many businesses that lacked access to government funds.
He said that the bank would aid inclusive growth and boost the growth of small and medium enterprises.
NAN recalls that the Central Bank of Nigeria on March 28 approved the bank’s licence to operate as a wholesale development finance institution with 1.3 billion dollars as seed capital.
The seed fund was jointly provided by the World Bank, German Development Bank, the African Development Bank and the French Development Agency.
According to Ubiji, activities of DBN will bridge financing gap for SMEs operating in sectors that have been neglected from accessing government funds.
He said: “Bank of Industry and Bank of Agriculture are financing arm of Ministry of Industry, Trade and Investment and Ministry of Agriculture, respectively.
“Funds from them are targeted at beneficiaries operating within their sectors.
“This has led to countless complaints of financial exclusion leading to reduced growth rate from SMEs that are not operating in the manufacturing and agriculture sectors of the economy.
“Accessing funds has been identified as a key driver for SMEs productivity, competitiveness, job creation and reduction of poverty in the country.
“Licensing of DBN shows that the government acknowledges the potential of small businesses to turn the negative growth of our economy into a vibrant one.”
NAN.
NASME wants low lending rate from DBN
By NAN
