Former Senate President Ahmad Lawan has expressed concerns over Nigeria’s high borrowing interest rate of 34 percent, stating that it poses significant challenges to business investments and food production across the country.
Speaking on Saturday after launching the distribution of grains and food materials to vulnerable individuals in Yobe North, his Senatorial District, Lawan noted that the exorbitant rates offered by commercial banks make it difficult for local businesses and farmers to operate profitably.
According to him, Nigerian entrepreneurs and farmers struggle to compete with their international counterparts, who benefit from much lower interest rates in their countries.
In a statement issued by his media aide, Ezrel Tabiowo, Lawan called for urgent reforms to address the crippling effect of high interest rates on economic growth and food security.
Also last Saturday, Lawan flagged off the 8th edition of the free medical outreach and free animal vaccination programme in Yobe North sponsored by his Foundation.
He explained that the distribution of food items by his foundation – the Senator Ahmad Ibrahim Lawan (SAIL) Foundation – was an intervention to complement the efforts of the Yobe State Government to provide relief to the poor and needy during the festive period.
He urged political leaders to find a lasting solution to the nation’s economic and security challenges, adding that bailouts and interventions, which include the distribution of food items, are merely temporary measures that do not address the real problems faced by vulnerable Nigerians.
Lawan said: “There is a need for those of us that can afford it, to help those who are in dire need. It is no secret that many Nigerians are in a very desperate situation. This intervention is to give solace and some kind of relief, especially at this festive period.
“Our intention is that these food materials should go down to those who are distressed and vulnerable to the economic situation in the country; and it is not enough. Such an intervention can provide some relief for some time. However, our desire and wish is to make every Nigerian self-reliant.
“Bailouts like this, or stopgap arrangements cannot stop the problems. But, before we reach that destination, we have to do something like this.”
Senator Lawan underscored the crucial role played by state governments in complementing those of the federal government in delivering good governance.
He expressed hope that the economic reforms introduced by the President Tinubu administration would yield the desired results in 2025.
“I’m looking forward to a very successful 2025 that sees an end to all these economic situations that we face; and that those economic reforms introduced by the federal government would yield the fruits that we had expected.
“But governance is beyond the federal government. The state governments have also some very important and crucial roles to play to complement what the federal government has been doing. Here in Yobe, the state government has been doing very well. Recently, it distributed food items to the vulnerable. Whatever we do here is to complement what the state government is doing, and I’ll advocate that every state does it, but this is not the solution.”
The former Senate President bemoaned the plight of Nigerian farmers in some northwestern states of the federation, most of whom, he noted, have lost their source of livelihood due to the spate of insecurity.
“We should start thinking about how to make our farmers go back to the farms. In some states of the North-West, the bandits have made it difficult, if not impossible, for them to go to the farms. Most of the people are peasants who depend on farming. Now that they cannot go to the farms, what else will they do? So, we must as leaders work for our farmers to go back to the farms, and, not only that, provide the right inputs at the right time to help them get the best yields,” he said.
He called on the federal government to immediately wade into the high interest rates fixed by commercial banks on borrowing, which, according to him, has become prohibitive of business investments and food production in the country.
“We must also do something to make funds for investment accessible. Today, the interest rate is prohibitive; in fact, it is callous. In other countries, they give a half percent of interest rates, but, today, in this country, it is probably 34 percent when you go to the bank to borrow.
“How would you invest and compete with farmers from countries that give half percent interest rate? We need to do so much. But before we reach that destination, we must intervene and come in to support our people,” Lawan said.
