MAN advocates single-digit lending rate

The Manufacturers Association of Nigeria (MAN) on Thursday advocated single-digit interest for banks, to stimulate the economy and fast-track development.
MAN President, Mr Frank Udemba, made the call in in Abuja.
“There is need for banks to offer single-digit interest rate loans, if government truly wants to diversify the economy because this can facilitate the industrialisation of the country.’’
According to him, MAN has made representations to government and relevant authorities on the issue.
Udemba said although there had been interventions like the N220 billion SMES’s fund set aside by government for manufacturers at single-digit rate, the interventions were sill inadequate.
He reiterated the need for the Federal Government to ensure that banks lowered their lending rate for government to achieve set goals in economic growth.
Udemba also urged government to provide infrastructure, including rail services, roads, stable power supply, portable water and condusive environment to hasten industrialisation.
He, however, expressed his regrets that manufacturers in the country were generating their own power and other services, saying that the development was making cost of production high.
“This is not the way it is done in other climes because this makes manufacturing counter-productive in the international market when government does not provide basic infrastructure.’’
The MAN president, however, advised Nigerians to exercise patience, noting that Nigeria had abundant natural and human resources to overcome its problems.
On the new tariff plan announced by the Nigerian Electricity Regulatory Commission, Udemba said that manufacturers would pay the old tariff as they were challenging the latest increment in court.
According to him, the last Multi-Year-Tariff-Order commenced in 2012 and was supposed to end in 2017 but NERC did not wait for its expiration before introducing a new one.
“MAN is challenging this act in court,’’ Udemba said.