Reps seek emergency funding for SMEs at single-digit interest rate

The House of Representatives in Nigeria has urged the Federal Government to establish an emergency funding scheme for small and medium-sized enterprises (SMEs), offering loans at single-digit interest rates. The resolution follows a motion sponsored by Rep. Bamidele Salam, who emphasized the importance of SMEs to Nigeria's economy, noting that they account for 96.9% of businesses, contribute 46.32% to GDP, and provide 87.9% of employment.

Salam expressed concern over high borrowing costs, which range between 20 and 46% annually, making it difficult for SMEs to obtain loans without risking their operations and profitability. The resolution calls for the Bank of Industry and the Small and Medium Enterprises Development Agency of Nigeria to receive special funding to support affordable lending, while the Central Bank of Nigeria is urged to review lending policies and risk-pricing measures affecting small businesses.

Brief written by urgent.news from Punch Nigeria's own syndicated text. Machine-written — may contain errors; check the original before relying on it.