NASME Bemoans 14% Interest Rate

• NASME Bemoans 14% Interest Rate

The Nigerian Association of Small and Medium Enterprises has expressed concerns over the Central Bank of Nigeria’s decision to retain the Monetary Policy Rate at 14 per cent, noting that this move by the apex bank will continue to make access to funding by the Small and Medium Enterprises difficult.

According to the Executive Secretary, NASME, Eke Ubiji, a large chunk of the SMEs in the country had closed down due to lack of access to funding and inadequate infrastructure, adding that leaving the MPR at 14 per cent will dash any hope for a reduction of interest rates for the SMEs and other businesses in the country.

He gave this position during a press briefing to announce NASME’s 16th International Micro Small and Medium Enterprises summit scheduled to hold by October ending in Ogun State.

“With this decision to peg the MPR at 14 per cent, borrowers will be greatly affected; it will definitely increase interest rates, thereby making it difficult for the SMEs to get access to fund their business,” he said.

He urged the apex bank to review the MPR downwards in order to drive the MSME development even as he commended the Bank of Industry in its bid to support the growth of the MSMEs.

Ubiji noted that the objective of the summit was to draw attention to the challenges and prospects of the MSMEs in Nigeria and stimulate the synergy that would uplift the growth and development of the MSMEs.

He pointed out that the summit tagged, ‘Maximising diversification for growth and opportunities through alternate market channels’ was coming on the heels of the Federal Government’s quest to resuscitate the manufacturing sector by refocusing on areas where Nigeria had comparative advantage, especially agriculture and mineral resources.