The Managing Director (M.D), Bullion Go-Neat Global Ltd, Olufemi Ajadi, has advised Nigerian banks to increase their Small and Medium-sized Enterprises (SME) loan facilities to Nigerian entrepreneurs.
He made this call recently while speaking to a group of online journalist in Nigeria.
Ajadi pointed out that such a move will, not only boost the capabilities of SMEs, but, also, reflect positively on the country’s Gross Domestic Product (GDP).
“I believe that the government can actually help SMEs in Nigeria, after all, these SMEs are helping the economy.
“SMEs help to create jobs, provide goods and services and should be supported by the government,” Ajadi stated.
He beckoned on the Nigerian government to mandate banks in the country on this drive towards ultimately boosting the country’s economy.
Ajadi cited several countries who enable SMEs and Entrepreneurs and whose countries are better off for it.
He noted that the continuous increase in the prices of goods and services could be mitigated if SMEs are encouraged to thrive through these boosted loan facilities.
“I still believe that if government could show interest in supporting Nigerian firms, they will give Nigerian banks strong mandates on it.
“Any bank which does not follow such a directive could be sanctioned,” he suggested.
Ajadi went on regarding the benefits of supporting SMEs, while stating that the growing need for job employment among many unemployed Nigerians could easily be met by these SMEs.
“If Nigerian SMEs are supported effectively through the provision of small loans, they expand their capacity, create more jobs and help in fighting hunger and insecurity”, Ajadi stated.
In response to the point made by one of the journalists, who fielded a question at the Managing Director as regards banks actually provided some loan facilities to entrepreneurs, Ajadi fired back.
“If you say that some banks provide loans, how many companies have accessed such loans and what are the terms,” he asked?
Ajadi lamented the shortsightedness of the government and financial institutions regarding SMEs, loan facilities and the economy.
In his summation, urgent actions needed to be taken if the country stands any chance of tackling issues of dwindling economy and job employment today.