IN what could be a huge relief for businesses in Nigeria, squeezed by the inclement operating environment, the Federal government has offered a loan facility to small and medium enterprises (SMEs) at a nine per cent interest rate.
President Bola Ahmed Tinubu, who announced the policy direction in a nationwide broadcast on July 31 2023, said his administration recognised the importance of micro, small and medium-sized enterprises (MSMEs) and the informal sector as growth drivers.
Tinubu said in the 20-minute broadcast, “We are going to energise this very important sector with N125 billion. Out of the sum, we will spend N50 billion on conditional grants to one million nano businesses between now and March 2024.
He pointed out that the administration intended to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country.
The President, unveiling opportunities for the manufacturing sector, said, “We would strengthen the manufacturing sector and increase its capacity to expand and create good paying jobs. We are going to spend N75 billion between July 2023 and March 2024.”
The objective, he explained, was to fund 75 enterprises with great potential to kick-start sustainable economic growth, accelerate structural transformation and improve productivity.
Each of the 75 manufacturing enterprises, the President said, “will be able to access N1 billion credit at 9 per cent per annum with a maximum of 60 months repayment for long-term loans, and 12 months for working capital.”
A former minister of Agriculture, Audu Ogbeh, saw Tinubu’s speech as offering hope to Nigeria’s economic problems.
Ogbeh, however, advised that the President must assemble a reliable team to deliver his plan to Nigerians.
“We have too many of our grandchildren living in distress. Too little production in a country gifted by God. This is a huge relief for the people. I’m excited by this speech and I believe that it would solve majority of our economic problems.
“We are only utilising 3.5 per cent of our land to produce food. People must feed well. The pruning down of interest rate is key and would help farmers,” he said.
Also, a professor of Political Science at the Nasarawa State University, Jideofor Adibe, said President Tinubu’s focus should go beyond the economy and touch on national healing and reconciliation.
Adibe said, “Some of his statements are emotionally appealing, but he must go beyond economic address. Also, if he said he saved N1 trillion in two months, does he know how many businesses closed shop within the specified time? These are the issues.”
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.