The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that the federal government is offering credit facilities worth up to N1 billion at an interest rate of 9% to major businesses, including manufacturers.
This was disclosed by the minister during a live appearance on Channel TV on Sunday.
Edun stated that the loan is available to both small and large firms, with an interest rate of no more than 9%.
He said “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 N1 million for small enterprises.
“And for the larger enterprises, we are offering up to N1 billion 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.”
Commenting on the increase in interest rate on the part of the Central Bank, Edun stated that the the apex bank’s stance is already helping to control inflation.
He noted that compared to last year, the inflation rate has progressively decreased each quarter this year.
According to him, 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,” Edun added
The 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 apex bank will affect the economy negatively, particularly making it difficult for them to access loans.
