House of Reps Proposes Emergency SME Funding Scheme

The House of Representatives has called on the Federal Government to establish a special emergency funding scheme for small and medium-sized enterprises (SMEs), proposing loans at single-digit interest rates to alleviate the burden of high borrowing costs. This resolution followed a motion sponsored by Mr Bamidele Salam, the representative for Ede South/Ede North/Ejigbo/Egbedore Federal Constituency of Osun State, during a plenary session.

The lawmakers urged the Central Bank of Nigeria to revise lending policies and risk-pricing measures affecting SMEs. They also requested the Federal Ministry of Industry, Trade and Investment to organize a national summit within 30 days to develop strategies for improving access to affordable credit.

The Bank of Industry and the Small and Medium Enterprises Development Agency of Nigeria would receive special funding to support this initiative. Salam highlighted that SMEs are crucial to Nigeria's economy, contributing significantly to GDP and employment, yet face prohibitively high borrowing costs, with commercial lending rates ranging from 20 to 46 percent annually.