Industrialists Seek Easy Access To Intervention Fund, Loans | Independent Newspapers Limited
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Industrialists Seek Easy Access To Intervention Fund, Loans

Posted: Aug 23, 2016 at 6:30 am   /   by   /   comments (0)

Some industrialists in Abuja on Monday urged the Federal Government to regulate the benchmark process of accessing its intervention funds and loans.

The industrialists said that lack of access to credits remained the major hindrance to industrialisation of the country.

Chijioke Uzomba, an industrialist and administrative manager, G.U. Ebeco Industries Limited, Idu in Abuja, identified bank regulations and charges as challenges hindering industrialists from accessing the Federal Government’s intervention funds.

Uzomba urged the Federal Government to take a further step to make it easier for investors to access credit, as it was not enough to provide the funds without it being accessed.

“Providing the funds is not enough because commercial banks make it almost impossible for individuals to get the money.

“They (commercial banks) make it almost impossible with their regulations. The charges are exorbitant because they want to make money out of your money.

“Commercial banks in Nigeria, I think are lazy because they don’t come up with innovation to make money.

“They just wait for customers that they will charge and make money from their money”.

Uzomba said the government should go downward with good regulations that would guide commercial banks on how to make industrialists easily access funds.

According to him, the government should regulate the benchmark process of accessing this money.

Another industrialist, Abdullahi Aremu, alleged that government and financial institutions caused industrialists not to access credits.

“Most industrialists in Nigeria are unwilling to share the ownership and control of their establishments with other investors so as to accumulate enough finance to run their business.

“This leaves most companies with little capital to run the business and hence, limiting their growth.

“Also, the stiff requirements and interest on loan of most lending houses in Nigeria, coupled with government negligence, discourage industrialists from borrowing.”

According to him, this stifles industrialisation in the country.

Aremu, who is also the Director-General, Advocacy for Economic Integrity, an NGO, said most industrialists decided not to partner with other investors to accumulate enough finance to run their business.

Aremu urged government to put in place measures to ensure that local industrialists have easy access to credit, adding that the credits should bear low interest rates to encourage them to borrow.

Tony Ejinkeonye, the President, Abuja Chamber of Commerce and Industry (ACCI), said some of ACCI’s members complained of not accessing the funds.

Ejinkeonye said the chamber had been intervening to protect its members’ interest and assist its members to prepare business plans.