Reduce interest rate on loans to 1%, Manufacturers beg FG

 

By Fatima Mohammed-Lawal

The Manufacturers Association of Nigeria (MAN) on Tuesday expressed dismay over present interest rate on loans among its members, urging that it should be further reduced to one per cent.

Chief Bioku Rahman, the outgoing Chairman of MAN, (Kwara/Kogi,), made the call in Ilorin while speaking at the Association’s 10th Annual General Meeting (AGM).

The theme of the meeting is entitled: “Tackling the Challenges of the Manufacturing Sector: A Win-Win For Government and Local Manufacturers”.

According to him, the present interest rates are killing their businesses.

The association urged the federal government to urgently direct the Central Bank of Nigeria (CBN) to drastically reduce interest rates on industrial loans.

Rahman said: ” the CBN should as well direct Commercial Banks to reduce interest rates on industrial loans.

“The Interest rates charged on Industrial Loans and other loans released as COVID-19 palliatives should be significantly reduced further to one per cent,” he said.

He also urged the Bank of industry (BOI) to approve and urgently roll out further reductions in its lending rates to industries, asking the CBN to wave many conditions for its foreign exchange policies to local manufacturers.

Similarly, he urged CBN to widen the window of Foreign Exchange to Local Industries, while urging the federal government to harmonise taxes and levies at Federal, State and Local Government levels.

Rahman, who implored Kwara government to boost energy of his members’ survival, added that a Heavy-Duty Gas-Energy Generation and Distribution Plant exclusively for Kwara Industrialists is needed.

The group’s helmsman again wanted the federal government to reconsider the present gross increase in the electricity tariff.

Reflecting on the effect of oil subsidy removal on the local manufacturers, the MAN call on the government to urgently come to the association aid because the bitter removal of subsidy in Nigeria has left manufacturers in unprecedented comatose.

Speaking also, Mrs Damilola Adelodun, the state commissioner for Business, Innovation and Technology, pledged the state government’s continual support for the Association to boost the economy of the state.

Adelodun who represented Gov. AbdulRahman AbdulRazaq of Kwara reiterated the resolve of the government to create conducive environment for the manufacturers in the state.

“The state has undertaken several key
initiatives to support the manufacturing sector and overall economic development.

“The Urban Renewal Initiative is transforming the architectural landscape of Kwara to enhance its aesthetic appeal and functionality, making it a more attractive place for businesses and residents,” he said.

In his address, the President, Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, described the relation between the state government and MAN as cordial.

He appealed to the state government that infrastructure around the industrial estates be upgraded. (NAN)
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