KADCCIMA seeks single-digit interest on loans for MSMEs

The President of the Kaduna Chamber of Commerce Industry, Mines and Agriculture (KADCCIMA), Hajiya Farida Dankaka, has urged the Kaduna State Government to support Medium Small and Micro Enterprises (MSMEs) by helping them access credit from banks at single-digit interest rate.

Hajiya Farida described the recent increase of the Value Added Tax (VAT) to 7.5 per cent by the Federal Government as ill-timed and undesirable for the economy in view of the implications for prices of goods and services in the face of rising inflation.

She pointed out that if the Kaduna State Government could help MSME owners in the state to secure loans at single-digit, paying back would not be a threat to borrowers and would help in creating job opportunities and growing the state’s economy.

Canvassing these positions in an interview with Daily Trust, the KADCCIMA president said the MSMEs were major drivers of the Nigerian economy and hence should be supported.

On the VAT hike, she said, “The review is ill-timed as it will add to the economic hardship already being faced by Nigerians who are still trying to make ends meet. Already, what we learnt is that the additional revenue will be used to meet up with the salary review by both state and federal governments.

“Instead, the government should provide access to loan at single-digit interest rate. The government can further support small business if such businesses can be given access to loans at single-digit interest rate; that way, paying back the loan will not be a threat to their businesses and they can easily pay while they engage in their day to day activities because such businesses are major drivers of the Nigerian economy.”