House of Reps urges FG to cut MSME loan interest rates

The House of Representatives has called on the Federal Government to reduce interest rates on loans for small and medium-sized enterprises (MSMEs) and to approve special emergency funding for the Bank of Industry (BOI) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). This resolution followed a motion titled ‘Need to Reduce the Cost of Credit and Improve Access to Affordable Loan Facilities for Small and Medium-Scale Enterprises in Nigeria’, sponsored by Rep. Bamidele Salam, the Chairman of the House Committee on Public Accounts.

Salam, representing Ede North/Ede South/Egbedore/Ejigbo Federal Constituency of Osun State, emphasized the importance of MSMEs in economic growth, job creation, and entrepreneurship. He cited a 2021 National Survey indicating that MSMEs make up approximately 96.9 percent of businesses in Nigeria and contribute significantly to GDP and employment.

Salam expressed concern over high borrowing costs, with commercial lending rates between 20 and 46 percent, despite a recent reduction in the monetary policy rate. The House urged the Federal Government to prioritize access to affordable credit for MSMEs to support economic stability and growth.