Nigeria’s Vice President Kashim Shettima has promised a new loan scheme of single-digit interest rates to micro, small and medium enterprises in Nigeria.
He said this marking World MSME Day held every 27 June.
“The government of President Tinubu recognises the vital role that Micro, Small and Medium Enterprises (MSMEs) play in driving economic growth, creating jobs, and promoting innovation.
“We urge all stakeholders to come together to champion the growth and success of MSMEs to achieve sustainable development for all, while we also recognize the plethora of issues that face MSMEs as a result of the subsidy removal, however, the government is working urgently to ensure quick access to single digit loans for Nigerian small businesses within the shortest time possible,” Shettima said.
MSMEs are considered the engine of innovation and growth in any economy but access to cheap capital in Nigeria has blunted the promise. Central Bank’s Monetary Policy Rate is at 18.5% at the last count, keeping the bank’s prime and maximum lending rates at 14% and 28% respectively.
Petrol – the primary energy commodity in Nigeria rose from N185/L to N530/L and the currency exchange rate at N760 – $1, spiralling prices upwards, a ripple effect from the removal of petrol subsidy by government and monetary sector reforms.
KPMG predicts inflation may rise to 30% in the coming months from the current 22%.
Even under these difficult macroeconomic conditions, the VP assured, “We remain committed to providing support, fostering an enabling environment, and improving access to finance for MSMEs, especially in these unprecedented times”.
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