MAN wants FG to create single digit lending

Date:

manufactureres association of nigeriaThe Chairman, Manufacturers Association of Nigeria (MAN), Ogun chapter, Dr Dapo Ogutuga, has called on the Federal Government to create a single digit lending rate to improve the nation’s economy.

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Ogutuga made the call at the 28th Annual General Meeting (AGM) of the association with the theme “Single digit lending; pathway to Nigeria industrial competitiveness,” in Sango-Ota, Ogun, on Thursday.

He said the major challenge facing the Micro, Small and Medium Enterprises (MSMEs) was their inability to access long term loans at a reasonably low interest rates.

The chairman said that the MSMEs were  leading  economic growth and development in most economies.

Ogutuga said the manufacturers in Nigeria were hard working and determined to succeed, and every effort should be made to encourage them.

“There are expectations that millions of jobs will be created if MSMEs will have access to fund from financial institutions,’’ he said.

He said one of the easiest ways to build a sustainable economy was by transforming the manufacturing sector to facilitate investment into the country.

The chairman said attracting investments required  improving the nation’s infrastructure, security and tackling the menace of multiple taxations.

“Providing long term funds at single digit rates and building strong public-private partnership spirit would make cost of manufacturing in Nigeria come down to a very appreciable level,’’ he added.

Ogutuga said the theme of the AGM was aimed at drawing government’s attention on the need to create funding windows to access long term loans at single digit interest rates.

He said that the quest for single digit interest rate was real because the manufacturing industry could not survive or be competitive with the kind of interest rate in existence.

The Deputy Governor, Operations, Central Bank of Nigeria (CBN),  Dr Tunde Lemo, assured the manufacturers that the bank was working toward reduction in lending rates.

Lemo said the CBN would collaborate with stakeholders to enhance efficiency in the money market, stressing that achieving single digit lending rate was a collective responsible of MAN and CBN.

The President of MAN, Mr Kola Jamodu, urged the Federal Government to intensify efforts in tackling the problem of  multiple taxations, which had impacted negatively on the nation’s manufacturing sector.

Jamodu said the inauguration of the new tax dispensation would permanently redress the challenge of multiple taxations that had hindered growth in the sector.

“The envisaged tax regime would stop the engagement of consultants to collects taxes and levies as well as the use of unorthodox methods to enforce compliance,’’ he said.

He said the reform would rekindle investors’ confidence in the economy and translate into improved investment flow and manufacturing contribution to the Gross Domestic Product (GDP).

Jamodu said it would also create substantial employment in the economy.

The Commissioner for Commerce and Industry in Ogun, Mrs Bimbo Ashiru, said there was no doubt that the state was a good location for serious investors.

Ashiru said Ogun had a ready stock of highly skilled workers and consumer-base that would enhance industrial and commercial activities.

“The forum of this nature presents us the opportunities to reappraise the policies of government as they affect this critical sector.

“The manufacturing sector deserves better treatment in the socio-economic scheme of affairs, policy formulation and implementation in the country,’’ Ashiru said. (NAN)

Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

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