Federal Government of Nigeria Offers ₦1,000,000,000 Federal Government Loan To Large Scale Businesses at 9% Interest Rate – Wale Edun
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that the federal government is offering up to ₦1,000,000,000 in federal government loan to large scale business enterprises, including manufacturers, at a 9% interest rate.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement during an interview on Channel TV on Sunday on the state of the economy.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that both large and small-scale businesses can access the federal government loan at no more than 9% interest.
According to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, small-scale businesses can obtain federal government loans up to ₦1,000,000, while large scale industries are eligible for as much as ₦1,000,000,000 all at the same modest interest rate of 9%.
“Our emphasis is that we make sure that we ramp up the speed and the scale of the help that is there. We are offering loans at 9% for medium-scale enterprises for up to ₦1,000,000 for small enterprises.
“And for the larger enterprises, we are offering up to ₦1,000,000,000 funding at 9% so that those manufacturing firms can invest, grow the economy, employ people, and produce more goods that will help push down inflation.
“As I said, for the largest enterprises, the government did sit down with the private sector, the manufacturer association and other stakeholders and the governors to provide an economy stabilization plan and have the measures announced,” Wale Edun said.
Speaking on the increase in interest rate on the part of the Central Bank of Nigeria, Wale Edun stated that the position of the central bank is already working in reining in inflation.
Wale Edun said the inflation rate has gradually declined quarter by quarter this year as opposed to that of last year.
According to Wale Edun, the government needs to “stay the course” to ensure that inflation is brought down as well as the prices of goods and services.
“It is very rare that the monetary authorities set as their target fighting inflation, bringing down prices generally. We have seen gradual growth quarter by quarter. Compared to the first quarter last year, growth is up. It is up to about 2.9% above population growth. You do have the economy growing in the right direction.
“We just need to stay the course and in staying that course, help is being given across the board,” Wale Edun said.
The Central Bank of Nigeria (CBN) last May increased the monetary policy rate by 150 basis points to 26.25% from 24.75%.
Many business owners and stakeholders lament that this hawkish position of the central bank will affect the economy negatively, particularly making it difficult for them to access federal government loans.
For instance, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) said the policy could inadvertently cause inflation, with businesses likely to increase the prices of goods and services to offset the higher borrowing costs.
Others also have raised similar concerns adding that the rate increase is counterproductive and that the will not address money supply challenges in the country.
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