With the ripple impact of the fuel subsidy removal and floating of the naira on businesses, President Bola Tinubu is planning a loan scheme that will allow Micro, Small and Medium Enterprises access loans at a single-digit interest rate.
The Vice President, Kashim Shettima made the disclosure on Tuesday in his World MSMEs Day speech, seen by THE WHISTLER.
Shortly after the fuel subsidy was officially removed, prices of fuel jumped to an average of N537 per litre, while the naira is trading over N760 for a dollar after the floating of the naira.
KPMG predicts that inflation will jump to 30 per cent from 22.41 per cent in the coming months due to the new policies initiated by the administration.
Shettima said, “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.”
The prime lending rate which is for secured credit-worthy customers rose to 14.07 per cent in May from 14.05 per cent in April.
The maximum Lending Rate which is charged to customers with low credit ratings settled at 28.31 per cent in May.
The lending rate rose on the multiple increases of the Monetary Policy Rate by the Central Bank of Nigeria to 18.5 per cent under the last meeting chaired by suspended CBN Governor, Godwin Emefiele.
“We remain committed to providing support, fostering an enabling environment, and improving access to finance for MSMEs, especially in these unprecedented times,” Shettima added.
President Tinubu has criticised Emefiele’s monetary policy saying it needs “through housecleaning.”
“Interest rates need to come down, currently too high, anti-people, anti-business – we have to work on all of those,” Tinubu had said.