CBN to provide entrepreneurs with single digit interest loans through the National Microfinance Bank

CENTRAL Bank of Nigeria (CBN) governor Godwin Emefiele has said that the institution will look to provide entrepreneurs with single digit interest rate loans through its subsidiary the National Microfinance Bank in a bid to boost industry.

Speaking in Benin at the Edo Production Centre (EPN), Mr Emefiele said the single digit loans are one of several other incentives the CBN will provide for industrial production at the facility. EPN is a cluster for micro, small and medium scale enterprises in Edo State where they will enjoy 24-hour electricity supply, share resources and enjoy other business support services aimed at boosting productivity.

Mr Emefiele identified the biggest challenges faced by SMEs to include access to finance and a conducive environment with constant electricity supply for uninterrupted production. He noted that Governor Godwin Obaseki has provided a solution to these problems with the production centre.

“For us at the CBN, this facility makes it easy for us to have a place to meet people who are ready to do business. As CBN, we are trying to deal with issues of access to finance and this place provides an opportunity,” Mr Emefiele added.

Governor Obaseki said: "We set up this hub to help us achieve our aim of creating a minimum of 200,000 jobs during the first four years in office. We are not expected to give out the jobs in the civil service but rather create most of them in the private sector, so, we are providing opportunities for industrialisation.

“We are providing 24-hour electricity to ensure profitability, as we have eliminated initial setup cost such as cost for electricity, security, water, among others. A lot of people are interested in the facility and we have received about 200 applications from small business owners who have shown interest to own spaces at the hub.”

He assured the CBN governor that the production centre will be commissioned by the second week of June when the facility will be ready for business. There are expected to be three such centres established across Edo State in each of its geo-political zones.

On opportunities for financing for SMEs, Mr Emefiele said that although deposit money banks and microfinance institutions are set up to deal with the issues of financing, the CBN in collaboration with the bankers’ committee has established the National Micro Finance Bank to expand access to financing. He said entrepreneurs who wish to benefit from the bank, would enjoy single-digit interest loans.

Mr Emefiele added: “We have set up over 20 centres for the National Micro Finance Bank across the country and I am sure Edo State will have a share. If you are given a loan with about 9% and if you are getting constant electricity, your cost of production will certainly be low and you can compete effectively, employ others and also grow the economy.”