High interest rates hurting small businesses–Tambuwal

Gov. Aminu Tambuwal of Sokoto State on Wednesday appealed to financial institutions to review downwards the interest rates charged on small scale businesses in order to fast track their growth.

Tambuwal made the call when he received the Managing Director of the United Bank for Africa (UBA) Plc, Mr Ken Uzoka, in his office in Sokoto.

He said the prevailing interest rates being charged by banks were hurting small businesses in the country and should be reviewed downwards to enhance growth and economic stability.

The governor said the high interest rates had been denying many individuals and small-holder entities access to loans, thereby limiting their ability to expand.

“I want to urge banks in the country, and especially the Central Bank of Nigeria (CBN), to look into this problem because many small and medium scale enterprises have gone under due to lack of access to finance.

“The ones that have struggled to stay afloat find it hard to expand. So the banks should look inwards and introduce policies that will, at the end, provide a win-win situation for them and their customers.

“I am not saying you should give loans that are not sustainable, but within the operating environment, a common ground could be reached that will help to stimulate growth in the economy,” Tambuwal said.

The governor added that the Sokoto State Government had long standing relationship with UBA Plc, adding that his administration would continue to explore avenues to enhance it.

He commended the bank for its corporate social engagements in the state while appealing for more interventions.

In his remarks, Uzoka said his organisation had impacted positively on the lives of many through its 3Es intervention bordering on education, environment and empowerment.

He pledged to always put the customers first while improving on its corporate social responsibility. (NAN)

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