Mr Wale Adegbite, Chairman, Manufacturers Association of Nigeria (MAN), Ogun Chapter, on Saturday urged commercial banks to give long-term loans to manufacturers to grow the nation’s Gross Domestic Product.
Speaking at 10th Business Luncheon of the association in Ota, Ogun, Adegbite said `that by providing long-term loans, the banks would have contributed their quota to Nigeria’s GDP.
According to him, banks prefer to give short-term loans to businesses with high turnover in their investments, rather than manufacturers whose investments are usually long-term based. Read also: My husband is the sole secret of my beauty— KAMWIRE’s Wife
Adegbite said the manufacturing sector had the potential to contribute more than what it is contributing to the GDP if long-term loans were available to them.
The MAN chairman lamented that obtaining loans from commercial banks had not been easy for manufacturers.
The luncheon had as its theme: – “Business Financing in Nigeria: The Bank of Industry Option’’.
He said the refusal of commercial banks to grant long-term loans at low interest rates had hindered sustainable growth in the manufacturing sector and adversely affected the country’s GDP.
“Obtaining loans from regular commercial banks has not been easy for manufacturers as the banks prefer to lend short term loans to businesses with high turnover and higher prospect of quick return on their investment. Read also: CBN spends N6bn on ABU Business School
“This coupled with cumbersome administrative procedures and astronomically high interest rates and charges have slowed down growth of the manufacturing industry,” he said.
He said if commercial banks provided long-term loans to manufacturers, it would make them to produce at optimal level and generate employment opportunities for the teeming youths.
“This will help reduce the poverty rate in the country,’’ he said.
In his goodwill message, Ogun State Commissioner for Commerce and Industry, Mr Bimbo Ashiru, said the state government was committed to providing the enabling environment for manufacturers to thrive and produce at optimal levels.
Represented by Mrs Funmi Ajayi, Special Adviser on Commerce and Industries, Ashiru said the N10 billion floated by the state was to encourage the real sector to perform well.
She said over 100 manufacturers had benefited from the fund since its inception in 2011, adding that most beneficiaries have successfully paid back.
Ashiru, however, urged those who were yet to pay back the loan to do so to enable others members of MAN have access to the loan. Read also: CBN spends N6bn on ABU Business School
- Society for Peace Holds 16th Annual Conference Nov. 30
- If you think migrating legally is good for you, go– Femi Adesina
- Lagos 2023: Two guber candidates step down for Jandor
- Housewife, 20, arrested for allegedly killing her co-wife with pestle in Bauchi
- Buhari’s in-law, Sha’aban resigns from APC
- Unilorin ASUU protest alleged casualisation of intellectual workers
- Tinubu will run an all-inclusive government, says PCC
- London museum returns looted Benin bronzes to Nigeria
- Fire guts 150 shops in Kachako Market in Kano State
- 2023 Election: INEC won’t allow PVC collection by proxy