Don't Miss


Home   >   Business   >   Industries   >   Economy   >   NASSI to Launch Loans for Member Firms

NASSI to Launch Loans for Member Firms

By on March 27, 2011

The Nigerian Association of Small Scale Industrialists (NASSI) is set to launch a Guarantee scheme of its member firms.

 

The President of the body, Mr Chuku  Wachuku, who made the disclosure in Lagos Wednesday said the programme is aimed at filling  gaps for members who lack collateral to support their credit proposals to banks.

Wachukwu, an economist and  former Director-General of the National
Directorates of Employment (NDE) pointed out that the Guarantee scheme will enable its members obtain loans from financial institutions without collaterals.

According to him, since it has become difficult for many members of NASSI, who do not have collateral to obtain loans, the umbrella body will going forward, guarantee the credits of weak  members, stressing that the support would come after the prospective beneficiary had met all the requirements set by the Central Bank of Nigeria (CBN) for NASSI to secure loans.

Wachukwu further disclosed that following a meeting of the  South West Zone, NASSI set up a six-man committee comprising three men from NASSI and three from NEXIM Bank to work out ways of actualising the objectives.

He said NASSI would work out the critical minimum requirement for accessing credit by small industries, stressing that the Association was already looking at ways of accessing the N200 billion small and medium scale enterprises (SMEs) funds set aside by the CBN.

The NASSI boss said accessing loans was crucial for the survival of entrepreneurs and regretted that only 1 per cent credit goes to the SMEs in the country.

“I want to make sure that government understands that the engine of growth of any economy rests on SMEs. It is my duty to initiate and tell people that the policy direction of NASSI is to make loans available to SMEs. I want to ensure that lack of collateral by our members is addressed such that concessionary interest rate is given to small scale borrowers,” he said.

According to Wachuku, what was lacking in SMEs was funding, stressing that  many of its members were more than ever before, ready to boost the operations of their businesses.

He said that the federal government has shown much commitment to grow the real sector of the economy which constitutes the bedrock for economic growth and development.

According to him, Nigerian government at all levels, especially the Ministry of Finance, Ministry of Commerce and Industry and the Central Bank of Nigeria (CBN) have pulled out policies that appeal to the real sector.

He said that the N200 billion SMEs fund from the apex bank would help boost the operations of the sector, adding that the Minister of Finance, Olusegun Aganga has equally promised to give the SMEs the sum of $500 million loan from the World Bank, which he noted would go a long way in widening the operational capacities of the benefiting firms.

Source : Thisday