Categories: Finance

Nigerian Banks Key to Economic Recovery

Nigerian Deposit Money Banks and other financial institutions have been identified as a critical economic sector capable of reviving the ailing economy and reducing the perennial unemployment in the country by providing soft loans to Small and Medium Enterprises described as the engine for economic development, Pastor Owen Nlekwuwa has said.

He added that in addition to other variable factors affecting SMEs, not many cottage industry operators could afford the astronomical interest rate charged by banks, unlike what obtains in other climes, adding that both the federal and state governments should create an enabling environment that will encourage small businesses to thrive.

The cleric stated this at the maiden edition of the business forum of Men of Impact summit of Olivet Bible Church in Lagos recently. The forum was used as capacity building, training and empowerment for entrepreneurs.

Nlekwuwa said, “Nigerian banks have not been helpful because our highly prohibitive exchange rate s not helpful to small businesses and start-ups. A situation where you take a loan at a rate of 25 per cent is not really helping us to build cottage businesses. It’s unlike what obtains in some places abroad.

“In America, for instance, you can obtain a loan at 2.5 per cent, hardly anything more than 4.5 per cent and they have years to pay back. In this case, you are not sweating to pay back. It’s not like that here. In Nigeria, we have a situation where the financial sector focuses more on people that have made it. There are only few DMBs really that promote small businesses.

“What makes the United States today is not government jobs; it’s entrepreneurship that made America what it is. We can tap into the same line of thinking and mindset, get our youths to tap into the power of Enterprise. This will ease unemployment. It is the responsibility of the government to create enabling environment where enterprise can thrive.”

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Share
Published by
Samed Olukoya

Recent Posts

Pounds to Naira Black Market Exchange Rate Today, 24th January 2025

The exchange rate between the British Pound (GBP) and the Nigerian Naira (NGN) in the…

3 hours ago

Dollar to Naira Black Market Exchange Rate Today, 24th January 2025

How Much is Dollar to Naira Today in Black Market? As of today, 24th January…

3 hours ago

Tolaram Group Drives Guinness Nigeria to First Profit in Six Months Post-Takeover

Guinness Nigeria Plc has reported a pre-tax profit of N20.1 billion for the second quarter…

8 hours ago

FirstBank’s FirstGem: Redefining Women’s Empowerment in Nigeria

The story of women’s contribution to Nigeria’s economy is as old as the nation itself. …

8 hours ago

UBA to host Knowledge Series Webinar on New Tax Regime for SME’s

Africa’s Global Bank, United Bank for Africa (UBA) Plc, is set to host a Knowledge…

8 hours ago

Moniepoint Partners With Visa to Expand Financial Services for African Businesses

Moniepoint Inc., a leading financial platform in Nigeria, has announced a partnership with Visa, a…

12 hours ago