Make credit accessible to SMEs, LCCI tasks FG

In its continued efforts in supporting Small and Medium-scale Enterprises (SMEs) as well as the Organised Private Sector (OPS), the Lagos Chamber of Commerce and Industry (LCCI), has called on the Federal Government to make more credit facilities accessible to SMEs and investors in the country.

Addressing a group of journalists on the “State of the Economy”, at a press conference held in Lagos, recently, President of LCCI, Babatunde Ruwase, projected that as the general elections draw closer, SMEs, investors and the OPS will be faced with a litany of challenges which may be tackled if governments at all levels show the will to make more credit facilities accessible.

“As elections draw near, the economy and investors would be faced with new challenges which will require some adjustments. As a leading policy advocacy institution, we have a responsibility to comment on these issues, highlight our concerns and make recommendations where necessary.  Let me emphasise that the LCCI is a non-partisan and an apolitical organisation. Our mandate is to advocate for policies and programmes that would facilitate the growth of domestic and foreign investment.  

“The latest Gross Domestic Product (GDP) report by the National Bureau of Statistics (NBS) shows that the Nigerian economy grew by 1.81 per cent year-on-year in the third quarter of 2018. 

“This performance is lower than the International Monetary Fund (IMF) and Economic Recovery, Growth Plan (ERGP) growth forecasts of 1.93 per cent and 4.1 per cent, respectively for 2018.  GDP growth of 1.81 per cent, which is below our annual population growth of about 3 per cent remain a cause for concern due to its wider implications for welfare, unemployment and poverty conditions in the country.

“Access to and cost of funds remain a big issue for many domestic investors. With commercial bank lending rate at between 20-35 per cent, the private sector, especially the SMEs had challenges in accessing credit for their businesses. We note the efforts of government through CBN and Bank of Industry (BOI) to extend intervention funds to the private sector operators. 

We also commend the government for enacting the Secured Transaction in Movable Assets Act, 2017 (popularly called Collateral Registry Act 2017) and the Credit Reporting Act, 2017.  However, we urge government and its agencies to do more in making sure that credit is accessible to the private sector especially the SMEs,” Ruwase said.