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Entrepreneurs lame SMEs’ woes on high interest rate


ABUJA – Some Entrepreneurs on Monday blamed the difficulty in running small businesses to high interest rates.

The entrepreneurs made the remark in separate interviews with the News Agency of Nigeria (NAN) in Abuja.

According to them, efforts must be geared toward liberalising the process of financing business ventures in the country.

Mr Femi Adetola, a Business Feasibility Consultant, said the survival of the Small and Medium Enterprises (SMEs) was critical to the operations of banks.

He said the aggregation of the sector had provided the foundation for the growth of the entire economy.

“The banks and the agencies of government in-charge of financing business should ensure that funds are provided to strengthen the business environment.

“I have developed wonderful business plans for many people but their inability to fund such plans has left such plans on the shelves.[eap_ad_2]

“Nigerians have wonderful business plans, they want to own businesses but they are cash trapped,’’ he said.

Another expert, Mr Romeo Kolawole, said the Central Bank of Nigeria (CBN) must rise up to the occasion to slash interest rate to a single digit.

Kolawole said the prevailing circumstance where the rate was pegged at 25 per cent was working against the plan to industrialise the country.

“The country cannot become industrialised one night. It is the aggregate of clusters of business activities that can position the country for industrialisation.

“All factors ranging from low interest rate and the right infrastructure must be put in place,’’ he said.

Chief Chris Okafor, a Fund Manager, said private funds outfits were beginning to provide intervention by providing funds for short term businesses.

“The banks cannot be compromised to shift grounds in the call for the reduction of lending rate because of the need for quick turnovers and drive for profits,’’ Okafor said.

On his part, Mr Gbenga Adefila, Managing Director of S&B Finance Consult, said high interest rate had forced many businesses out of operation, adding that the business environment must be nurtured. (NAN)[eap_ad_3]

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