The Nigerian government has unveiled a significant financial initiative to stimulate economic growth, Finance Minister Wale Edun has revealed plans to provide up to N1 billion in credit facilities to large enterprises, including manufacturers, at a highly competitive 9% interest rate.
This announcement came during an interview on Channels TV, where Edun discussed the state of the economy and outlined the government’s strategies to support businesses. Emphasizing inclusivity, Edun mentioned that both small and large-scale businesses can access these loans, with small enterprises eligible for loans of up to N1 million.
“Our focus is to provide swift and substantial assistance to businesses. We’re offering loans at a modest 9% interest rate for medium-scale enterprises, with amounts up to N1 million, and up to N1 billion for larger enterprises,” Edun explained.
The Finance Minister underscored the importance of these measures in fueling investment, job creation, and ultimately, reducing inflation. He highlighted collaborative efforts between the government, private sector, and other stakeholders in crafting an economic stabilization plan to support these initiatives.
On the issue of high-interest rates set by the Central Bank, Edun defended the measures, stating that they are effectively curbing inflation. He pointed out a gradual decline in inflation rates each quarter compared to the previous year, signaling positive economic progress.
However, concerns have arisen among business owners and stakeholders regarding the impact of the Central Bank’s policies on access to credit. The recent increase in the monetary policy rate has raised fears of tighter lending conditions, potentially hindering economic recovery efforts.
Despite these concerns, the government remains committed to providing support across various sectors to foster sustainable economic growth. The move reflects ongoing efforts to navigate challenges and ensure the stability and prosperity of Nigeria’s economy.
