An Industrialist, Mr Kuti George, on Wednesday called for downward review of bank lending rates to average of 10 per cent for economic growth and sustainable local production.
According to him, reducing bank lending rates to about 10 per cent for small scale producers in the country was imperative for their survival.
“The rate needs to be brought down, especially now that the nation’s economy is in recession”.
The chairman said that most companies thriving abroad got loans at two per cent interest rate.
“If the situation of bank lending rate is not addressed, many domestic firms will find it too extremely challenging to continue to be in business and the impact will be catastrophic to the society, ‘’ he said.
George also said that entrepreneurs were finding it difficult to access the intervention funds given to small business owners by government.
“Our members usually find those government intervention funds to entrepreneurs inaccessible, which has become our bane in business.
“Even when a handful of them get, it is often insignificant to the generality of us,’’ the chairman said.
He urged the government to provide short-term appropriate loans to small scale indigenous producers to boost the nation’s Gross Domestic Product.
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