Chamber Pushes for  SME Bank to facilitate longterm financing of micro-businesses

‎Kayode said,”It is also very possible that before the end of the year,we make a push for SME banks,to be driven by the organised private sector,working closely with national institutions,targeted to the funding of SMES only.”

Speaking further,he said,”We all know that our banks are not really structured for long term funding,but that is still the mechanism the government is using,and we must tweak this mechanism,and ensure that our SMES are good to go in terms of competition.”

In further clarification,he said,”We have the Bank of Industry,(BoI)big industries,small industries and Micro industries,.In the past,Nigeria used to have the Nigeria Bank for Commerce and Industry,NBCI,targeted specifically at SMEs.BoI is doing wel,but the BoI will never achieve the purpose the government has in mind for funding SMEs.

He adds further that one institution cannot do it,pointing out that‎ there is a need for a targeted SME bank.

BoI is funding everything. They are funding Oil and Gas,Power,Nuclear energy,millions of projects,and when one institution tries to do everything,confusion sets in,Kayode said.

‎”We need targeted fuding for the SMEs,it is very important for the growth and development of our economy.”

Speaking further on the level on the level of discussion with the government,he said,”We have taken this matter up with the government at the level of Presidential Enabling Business Environment Council,PEBEC.

The structure the BoI and the Commercial banks have for funding of SMEs is tedious,and we need to rejig and restructure it to bolster our economy,Kayode adds further.

He also suggested a kind of social economy and finance leasing to address agricultural funding concerns,noting that,”In this social economy funding,farmers get what they need such as their equipment and other essential services to upscale their agricultural activities”