Don't Miss


Home   >   Business   >   FG urged to provide N150bn loan-able funds for private sector

FG urged to provide N150bn loan-able funds for private sector

By on March 11, 2016

The President, Cement Importers Association of Nigeria, David Iweta, has called on the federal and state governments to summon courage to create investment windows by attracting capital flow of minimum of N150 billion (USD750m) as loan-able funds for the private sector of each of the 36 states of the Federation through external borrowing annually for three years consecutively for lending to private sector operators at six per cent per annual.

He said this will no doubt generate 500,000 jobs by each state with a total of 18 million jobs in the country in one year, adding that this an area the economic summit should address.

Iweta, who is also the President of Sapele Chamber of Commerce, Industry, Mines and Agriculture, told journalists in Lagos that this fresh venture capital shall be targeted towards the developments of agriculture, mining and manufacturing activities.

“With quick action in this direction the Nigeria economy will attain its pride of place in the comity of nations.

“This initiative with committed, sustainable political will running for three years being the remaining part of the first tenure of government of General Mohammadu Buhari attracting total fresh venture capital investment of N16.2 trillion (USD81 billion) and employment opportunity for 54million Nigerians will have President Mohammadu Buhari print his name in gold.

“The Summit outcome would be as mere jamboree if it is not co-planned by the executors of the resolutions of the summit who are the real drivers of the economy. I mean the cabal/monopolist should be excused. A situation where government operators and imported consultants design programmes and policies that will be implemented by OPS without being privy to preparation of the summit agenda will be dead on arrival as in previous summits that are gathering dust in the furniture cabinets of ministries and government agencies,” Iweta said.

He said the biggest enemy of the economy is the Deposit Money Banks that never demonstrate confidence in the Nigerian economy by practically not lending to the real sector of the economy because they do not have long tenured deposits.

His words: “They lend only for imports of 30 to 90 days, government contracts and forex round tripping with indiscriminate and unmerited bank charges to declaring huge annual paper profit that never culminate to investing in long term projects.

“But let me state here that, Federal Government should not be carried away that there are shovels of investors that have catapulted to being the richest persons on our land yet the economy is sinking owing to government failure in providing level playing field to all operators in same sectors.

“It is a security threat to an economy to allow a single or few persons to produce and control the prices of essential commodities such as cement, rice, sugar, petrol and other basic necessities of life for over 170 million people. Monopoly must be discouraged and destroyed by this government. If we do not destroy monopoly, monopoly will destroy the economy of Nigeria. Be it stated here that the activities of our so called richest men in Nigeria are more harmful to our economy than the activities of Boko Haram”.

Iweta said it is clear that without driving the summit through States private sector, the same old yearly non progress of government will be recorded, adding that every state has its natural endowment, human capital resources and investment climates that are peculiar and as such, the policy that is favourable to one state or region may not be same in another state or region.

“With General Muhammadu Buhari being desirous of providing mass employment to eradicate the huge army of unemployed working class, the state approach concept should be applied. Each State should host her state economic summit originating from Local Government Councils targeting 500,000 jobs per year with investment of N150 billion (US$750m), irrespective of size and population of each state. With collaborative effort of the organised private sector, a three year investment of N16.2 trillion (US$81 billion) at six per cent interest rate per annual will employ 54 million people to cause the change slogan of APC government,” he said.

 

[ThisDay]