Fashola: High Lending Rate Killing SMEs
Upgrades capacity of 2000 artisans, tradesmen
Lagos State Governor, Mr. Babatunde Fashola, yesterday lamented the astronomical rate at which financial institutions lend money to small and medium-scale businesses, noting that high interest rate “is killing entrepreneurship.”
The governor added that the federal government should be interested in reducing interest and lending rate, which he said, would go a long way to spur an army of entrepreneurs that could create millions of job opportunities very shortly.
He canvassed the position at the sixth edition of the artisans and tradesmen day held at Lagos TV Complex, Agidingbi, thereby lamenting that the country’s high interest and lending rate had been killing small businesses.
At the forum, the governor said the federal government should be committed “to reducing lending rate so that people can invest. In any society where it is easy to make money simply by saving, that society does not invest or manufacture.
“That was why in the United Kingdom, it is 0.5 per cent interest. But here, if you deposit one million, you can get 10 per cent for doing nothing. So why will anyone like to invest? So government must address those things,” he said.
The governor explained the state government’s diverse initiatives directed at promoting small and medium scale businesses, citing the Lagos State Tradesmen and Artisans Empowerment Programme (LASTAEP).
Under the scheme, Fashola said no fewer than 2,000 artisans and tradesmen “have been retrained in various skills and competency under the capacity building. The training conducted by the Lagos State Technical and Vocational Educational Board (LASTVEB) is to enhance productivity and engender growth informal sector.
He explained that the programme was initiated to bridge the skills gap and cushion employment challenge in the state, saying the problem of unemployment was national and Lagos “is not been immune.”
He added that some local artisans were getting jobs, but lamented that foreigners from neighbouring countries got most jobs in the informal sectors because most artisans in the country did not upgrade their skills and competence.
He said it was not the case that there were no skilled men like electricians, tilers, plumbers among others, but have not been well-skilled for contemporary competitiveness and that saw to the upgrading of the five technical colleges for their training.
He said: “I can announce that all out technical colleges are up and running. And people are being trained in
in
the their large capacity for roof making, tiling, electricity installation, bricklaying, electronics, aluminum and production and so on.
“There are few things we must all understand to solving unemployment and poverty. One of them lies in three words: ‘Made in Nigeria’. As long as we make more things in Nigeria, it will mean that many more mills, factories and production units are functioning.”
Also speaking, the Special Adviser on Commerce and Industry, Mr. Oluseye Oladejo said the artisan week, more than just an occasion for dancing and eating, was an occasion to endorse newer skills into the various groups.
Oladejo noted that since the programme started, in which a total of 9,780 members have been trained till date, the artisans and tradesmen are now able to compete and becoming contractors of the state government.