ABA – The former Abia State Commissioner for Agriculture, Mr Ike Onyenweaku, on Thursday urged banks to give loans to artisans and small-scale industrialists for the development of the economy.
Onyenweaku, in an interview with the News Agency of Nigeria (NAN) in Aba, Abia, on Thursday, said that lending to small businesses would help the banks to recover their debts and avoid bad ones.
“But when you give one company one billion, you are tying down the destiny of the bank to that company instead of spreading it to 20, 30 or 40 businesses.”
Oyenweaku said that injecting big funds into smaller business units and sharing it among many of such units would have a great multiplier effect economically on the individuals and the nation.
The former commissioner said that lending to the poor and the struggling businessmen who want to build a business and become something was more secured than lending to big companies.
“So, I encourage the banks to give these small holders loans because in as much as the banks would want to secure their money or investment, it is very important that they consider these small holders.
He said that lending to small businesses would create a win-win situation for the banks as their e their debt recovery rate would increase by about 80 per cent to 90 per cent. (NAN)