The National Institute of Credit Administration, NICA says high interest rates are killing Small and Medium Enterprises and SMEs in Nigeria.
The Chief Executive Officer, Prof Chris Onalo, disclosed this in a recent statement.
He called for an urgent need for lower interest rates loans for small businesses nationwide to cushion the impact of the current economic hardship.
“Businesses need help to break even with high-interest rate loans because SMEs have other high operating costs, making repayment challenging.
“To be better competitors and be empowered to expand their trades, businesses should have access to single-digit interest rate loans with flexible repayment options. This is the ideal situation that will boost a business-friendly environment.”
Recall that the Central Bank of Nigeria, in its 293rd Monetary Policy Committee meeting, raised the interest rate by 400 basis points to 22.75 per cent.
The apex bank said it was to reduce the soaring inflation, which stood at 29.90 per cent in January.
