Tambuwal: High Interest Rate Hurting Small Businesses
Sokoto State Governor, Alhaji Aminu Tambuwal, yesterday said that the prevailing interest rate charged by banks is hurting small businesses in the country.
He also advocated that interest rates should be reviewed downwards to enhance growth and economic stability.
Speaking in Sokoto when he received the Managing Director of the United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka recently, Tambuwal said another challenge with high interest rate is that it denies many individuals and small-holder entities access to loans, thereby limiting their ability to expand.
“I want to urge banks in the country, and especially the Central Bank of Nigeria (CBN), to look into this problem because many small and medium scale enterprises have gone under due to lack of access to finance.
“The ones that have struggled to stay afloat find it hard to expand. So the banks should look inwards and introduce policies that will, at the end, provide a win-win situation for them and their customers.
“I am not saying you should give loans that are not sustainable, but within the operating environment, a common ground could be reached that will help to stimulate growth in the economy,” he said.
Tambuwal noted that Sokoto state government has had long standing relationship with UBA Plc, and his administration would continue to explore avenue to enhance it.
While commending the bank for its corporate social engagements in the state, the governor urged the UBA boss to do more considering the special relationship between the two entities.
In his remarks, Uzoka said his organisation has impacted positively on the lives of many through its intervention in education, environment and empowerment.
“All our customers are not just customers, they are members of the UBA family and we value our relationship with them at all times,” he stressed.