The Managing Director of Bullion Go-Neat Global Ltd (BGGL), Olufemi Ajadi has asked Nigerian banks to create more lending facilities in support of Nigerian entrepreneurs.
Ajadi who made the call at a forum organised in Lagos by the Commerce & Industry Correspondents Association of Nigeria (CICAN), said such move by banks would not only help the capacity of Nigerian run companies but also help boost the economy.
He noted that funding support remained critical for survival of SMEs but that the government and its agencies were not looking in that direction adding that the current situation whereby emergent small firms are allowed to suffer due to the lack of finance was not auguring well for the economy.
Ajadi said poor access to funds is worsening unemployment situation as well as contributing to the spiraling prices of goods and services as companies are forced to source capital from mainstream banks, at usually high interest rates.
He referred to the tag of small & Medium Enterprises SMEs as the engine of growth, saying firms could only perform such roles when they are supported by government at the teething stage through tax incentives and affordable funds.
In his words: ” I believe that the government can actually help SMEs in Nigeria, after all, these SMEs are helping the economy to create jobs, provide goods and services and hence, should be supported by the government”
He cited examples with other countries that are ahead of Nigeria because they had taken time to support their SMEs noting that registration procedures could be simplified for Nigerian startups rather than the current situation whereby they are slammed with multiple taxes.
Ajadi acknowledged that some banks were trying by providing loans for these categories of firms but added that the conditionality for such loans could be made easier.
“If you say that some banks provide loans, how many companies have accessed such loans and what are the terms?
“I still believe that if government could show interest in supporting Nigerian firms, they will give Nigerian banks strong mandates on it. Any bank which does not follow such a directive could be sanctioned.
“If Nigerian SMEs are supported effectively through the provision of small loans” they expand their capacity, create more jobs and help in fighting hunger and insecurity”, he stated
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