LAGOS – Mr Ajayi Omonayin, the National President of Automotive Technicians Association (NATA), on Wednesday urged micro finance banks to increase its support to the sector in 2015.
Omonayin told the News Agency of Nigeria (NAN) in Lagos that micro finance banks should consider downward review of their interest rates on loans for the sector.
“Micro finance banks need to review down the interest rates to enable automotive technicians to access them.”
According to Omonayin, easy funds from the banks to the sector would enhance innovations in the automotive sector.
“This has impeded partnership between micro finance banks and automotive technicians,” he said.
He said that the rates were too high and some were as high as those charged by commercial banks.
“The micro finance banks are operating like commercial banks; their interest rates are too high.
“They charge between 25 and 60 per cent interest per annum; how many small businesses can thrive with that?”
He said that because of the way micro finance banks operated, most Nigerians had misconceptions about them and were not willing to do business with them.
The president noted that the micro institutions were closer to people than conventional banks and should, therefore, reduce their interest rates so that Nigerians could patronise them.
“The Federal Government approved the establishment of the banks to assist the common people, but the banks do not do so now” he said.
Omonayin urged the banks to encourage the technicians to explore business opportunities and grow.
He added that micro finance banks that had already accessed the N220 billion fund should consider extending part of the loan to automobile technicians.
He expressed disappointment that the fund was being managed by commercial banks, adding that it might not reach the people it targeted .
(NAN)