The prevailing interest rate charged by banks is hurting small businesses in the country and should be reviewed downwards to enhance growth and economic stability, Sokoto state Governor, Aminu Waziri Tambuwal, has said.
Speaking in Sokoto when he received the Managing Director of the United Bank for Africa (UBA) Plc, Mr. Ken Uzoka, Tambuwal said another challenge with high interest rate is that it is 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,” he added.
Tambuwal said Sokoto state government has had long standing relationship with UBA Plc, and his administration will continue to explore avenue to enhance it.
While commending the bank for its corporate social engagements in the state, the Governor urged the MD to do more considering the special relationship between the two entities.
In his remarks, Uzoka said his organisation has impacted positively on the lives of many through its 3Es intervention education, environment and empowerment.
“All our customers are not just customers, they are members of the UBA family and we value our relationship with them at all times,” he added.