Lack of access to credit stifling economic growth, FG says
THE Federal government said lack of access to credit is one of the major challenges that have continuously stifled economic growth leading to decline in investment and job creation.
It therefore, vowed to ensure that the trend is quickly reversed for greater interest of the national economy going forward.
It urged stakeholders to revamp all legal frameworks to efficiently address cases of business failures, debt collection and determine how best the establishment of the Bankruptcy Commission and its Debt Collection Offices will contribute to streamline the processes.
The Minister of Industry Trade and Investment, Otunba Adeniyi Adebayo, stated this yesterday, while declaring open, a one- day National Workshop on Bankruptcy and Debt Collection in Nigeria held in Abuja.
Adebayo said: “As part of government to enhance the use of trade policy as a veritable tool for the promotion of the growth and socio- economic development of Nigeria, the Federal Executive Council ( FEC) in March last year, under the Ministry’s Trade Policy Action Plan 2022 to 2026 approved the proposal to establish the Nigeria
Bankruptcy Commission with Debt Collection offices in the 36 states of the federation and the FCT.
“The purpose is to among other things, promote an effective legal and institutional framework to regulate business behaviour with a view to ensuring that only viable concerns continue to operate but unfortunately, it is very clear that the credit system in the country has been facing numerous challenges over the years as many businesses are unable to access credit including trade due to finance scarcity, high interest rates and the stringent lending conditions that are often imposed by the banks and other financial institutions.”
The Minister enjoined the stakeholders, drawn from the banks, judiciary and government to ensure that the outcome of the workshop promotes the institutionalisation of a vibrant and sustainable credit system in the country, which should sufficiently incentivise financial institutions to lend to especially, Micro, Small and Medium Enterprises ( MSMES).
In his welcome Address, the Director- General, Chief Trade Negotiator of Nigerian Office for Trade negotiation, Ambassador Yonov Fred Agah, said credit is key for both producers and market to grow and promote exports.