Disbursing loans to Small and Medium Enterprises (SMEs) through commercial banks is not working in the interest of both the government and the businesses they want to promote.
Speaking during the 28th Annual General Meeting of the Abuja Chamber of Commerce and Industry (ACCI) in Abuja on Monday, the president of the chamber, Prince Adetokumbo Kayode, said the practice of banks requesting for collaterals and proof of tax payments was beyond some of the businesses.
Prince Kayode proposed a model that would involve reputable chambers like his guaranteeing SMEs and such guarantees being sufficient for government to give loans to the enterprises.
He said one of the biggest challenges of SMEs in Nigeria is access to finance despite several funds provided by government that are not reaching the businesses.
The ACCI boss said the chamber had established a Business Entrepreneurship Skills and Technology (BEST) centre to train young Nigerians on profitable businesses to bridge the massive skill gap and employability problem existing in Nigeria.
“The centre aims at improving the use of technology in the enhancement of chamber business and incorporating and taking over the delivery of world class training and activities in ICT in Abuja and Nigeria as a whole,” he said.
He called for partnership between government and the private sector to spur growth in the economy.
Prince Kayode said government does not run the economy but the private sector as the former should only create the enabling environment for businesses to thrive.
Source: Daily Trust