Prime lending rate at 18%, maximum lending rate at 31% killing businesses—NACCIMA
The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Iyalode Alaba Lawson has revealed that studies by her group showed that with the prime lending rate hovering at 17.59 per cent alongside a maximum lending rate of 30.94 per cent, it is difficult for entrepreneurs to thrive or for new investments to be created in the country.
Speaking in a recent interactive session in Lagos, she decried the intractable high interest rates, describing it as a major barrier to business growth and entrepreneurship development.
According to her, “the MSME sector which is a very strategic contributor to the nation’s economy is still faced with constraints such as access to finance, weak infrastructure, inconsistency in government policies, access to market and information, multiple taxation and outdated skills and technology”.
“Despite these challenges, MSMEs in 2013 contributed about 48.47 per cent to nominal GDP indicating that there is need for firmer commitment from the government to carry on with building the MSME sector because Nigerian MSMEs have compelling growth potential if provided with an enabling environment/
In her submission, “The federal government still has a lot to do in driving its new Economic Growth and Recovery Plan (ERGP) for the desired outcome to be what it actually expected”.
