The Nation Newspaper

Tag: loans

  • BoI to support youths with zero interest loans

    BoI to support youths with zero interest loans

    The Bank of Industry (BoI) has revised its interest rates for corps members under its Graduate Entrepreneurship Fund (GEF) programme, from nine per cent to zero per as part of measures to encourage entrepreneurship and aid business growth.

    Currently on the second edition, the GEF scheme is being implemented by BoI in partnership with the National Youth Service Corps (NYSC) Directorate. It has recorded over N262.9 million disbursements to 177 successful candidates.

    BoI said it decided to further encourage such young entrepreneurs by administering their loans at zero per cent interest charge effective from May 1, this year.

    Existing GEF loans and those to be disbursed from May will require repayment of only the principal amounts, while the 177 candidates that have been financed under the scheme will pay the loan interest that accrued up to April 30.

    As at March 31, 2017, the bank had approved N583.8 million for disbursements to entrepreneurs under the scheme.

    BoI said it was motivated by the larger part of the 177 candidates who have exhibited strong dedication to their businesses and have demonstrated unusual commitment to repayment of their loans including the nine per cent interest portion.

    With the first disbursements already creating impact in the agriculture value chain and creative industry, the bank added that N46.98 million is expected to be disbursed to the remaining 28 successful candidates who are in various stages of complying with the loan requirements.

    “The Bank of industry is highly delighted in the outcome of its investment in these young Nigerians. The bank firmly believes that entrepreneurship is a critical pathway to resolving the worrisome unemployment problem in the country.

    “Hence, the bank desires to ensure the businesses that have been created through the GEF programme remain sustainable with progressive migration from small businesses to medium and eventually to large enterprises,” a statement by BoI said.

    The statement added that the bank believes that that the gesture will further attract young Nigerians that are undergoing their one-year compulsory national youth service to embrace entrepreneurship by participating in the GEF programme.

    “It is pertinent to reiterate that the zero per cent interest charge on loans apply only to the GEF programme, which is implemented in partnership with NYSC Directorate”, the bank added.

  • BoI partners RUFIN on soft loans for MSMEs

    BoI partners RUFIN on soft loans for MSMEs

    The Bank of Industry (BoI), executor of MarketMoni, one of Federal Government’s social intervention programmes, has sealed a pact with the Rural Finance Institution Building Programme (RUFIN) to provide access to soft loans to 100,000 small businesses.

    RUFIN is an initiative of the Federal Ministry of Agriculture and Rural Development (FMARD).

    The deal was part of the Federal Government’s plans to stimulate the economy and deepen financial inclusion for the economically active rural poor.

    It also signals the commencement of events by BoI to reach 100,000 new beneficiaries of MarketMoni through RUFIN across Nigeria’s six geopolitical zones within the second quarter of the year.

    Under the scheme, accredited individuals will have access to quick, easy and interest-free loans of between N10,000 and N100,000 for up to six months at no other costs except a one-time five per cent administrative fee.

    BoI said it hoped to leverage the success of RUFIN’s financial empowerment efforts across 12 states  to reach its target the Government Enterprise Empowerment Programme (GEEP) market.

    Already, the first phase of the loan disbursements is ongoing across Katsina, Nasarawa, Zamfara, Edo, Oyo and Lagos states, driven by RUFIN-mentored microfinance banks (MFBs) and microfinance institutions (MFIs).

    “The participating MFBs and MFIs include BOWEN MFB Limited, Evbovbiorhon Community Farmers Savings and Loans Cooperatives Ltd (ECF), Rural People Development Initiative (RUPEDIN), Self–Reliance Economic Advancement Programme (SEAP) and Development Exchange Centre (DEC),” a statement from the bank said.

    BoI’s Acting Managing Director, BoI, Waheed Olagunju, confirmed that the partnership aligned with the bank’s objective of expanding access to credit for people running micro enterprises below the bottom of the pyramid, majority of which are women.

    He further acknowledged the pivotal role that credit facilities play in economic growth in Nigeria, saying: “BoI’s partnership with RUFIN is geared towards stimulating this process by reaching beneficiaries in rural areas across the federation and including them in Nigeria’s financial landscape.”

    RUFIN’s National Programme Coordinator, Olumuyiwa Azeez, said: “We are proud that our track record has earned us this opportunity to be a channel to reach out to thousands of micro entrepreneurs who hitherto never had opportunity of accessing fund to boost their businesses.”

    He said this was in line with the Minister of Agriculture and Rural Development, Chief Audu Ogbeh’s plan to get life back to the rural people.

    The MarketMoni programme targets 1.6 million beneficiaries in a year. This population consists of one million micro-enterprises of market traders (women and men); 260,000 artisans, 200,000 farmers and/or agriculture workers and 200,000 enterprising youths broadly.

    It is expected that beneficiaries of the scheme would go on to create at least one new job in their localities as a result of the intervention.

  • Fed Govt to take $12.921b loans

    Fed Govt to take $12.921b loans

    THE Senate has been asked to approve   $12.921 billion loans as part of the Federal Government’s 2016-2018 external borrowing (rolling) plan.

    The presidential request was read by Senate President Bukola Saraki in the chamber yesterday.

    In the April 21 memo,  “Request for approval for Federal Government 2016-2018 external borrowing rolling plan”, President Muhammadu Buhari referred to his earlier letter on the same subject matter.

    The request is believed to be part of the $29.96 billion loan earlier rejected by the Senate.

    The memo reads in part: “I wish to refer to my earlier letter in respect of the above subject and to inform the distinguished Senate that the China-Exim Bank has approved our request for a loan to execute the Lagos-Kano Railway modernisation project (Kano-Kaduna segment) for a sum of $1.231 billion.

    “The Chinese have also informed us that approval of the Lagos-Kano railway modernisation project (Kano-Kaduna segment) and coastal Railway project. Lagos-Calabar segment, are imminent.”

    The letter listed China-Exim supported projects to include: Lagos-Kano railway modernisation project, the Lagos-Ibadan segment ($1.231billion); Lagos-Kano railway modernisation project, Kano-Kaduna segment ($1.146 billion); and Coastal Railway project, Lagos-Calabar segment ($3.474 billion) – all totalling $5.851 billion.

    It added: “As you are aware, the funds available under the China/Africa fund are limited and loan applications from all African countries are funded based on first come first serve.

    “And therefore, there is an urgent need for us to sign these loans as soon as they are approved, or we will lose out in the event that we delay in signing the loan agreement. These loans form part of our overall rail funding strategy.

    “We are already in the process of completing the concession of the Port Harcourt to Maiduguri line to immediately link the eastern part of the nation.

    “We fully intend to source further consessioning funding to ultimately upgrade this critical line to high speed standard guage line.

    “These projects form part of our overall plans to resuscitate the rail transport across the nation and thereby drive inclusive growth.

    “You may also recall my earlier request for the speedy clearance of some emergency projects earmarked for the Northeast in the 2016-2018 borrowing plan.

    “You will also recall that my request was based on the need to consolidate the relative peace at that time. Since then the situation as you are aware, has changed dramatically and introduced even more urgency to the situation in the zone than ever before.

    “While the capture and destruction of the stronghold of Boko Haram in Sambisa forest was a welcome news, the recent and unfortunate incident of the bombing of an IDP camp by mistake with loss of civilian lives, brings to the fore the need to resettle the people back to their homes quickly in other to avoid such incidence in the future.

    “However, for us to be able to do this, there is need for urgent consideration of the identified projects, which will enable us to start reconstruction and rehabilitation of the region in other to create jobs for the people and rehabilitate the schools to get the children of the streets into schools.”

    The letter said that the World Bank has approved a sum of $575 million to assist the Federal Government’s reconstruction and rehabilitation efforts, as well as for the procurement of vaccines and other ancillary facilities for national routine immunisation to eradicate polio after the outbreak in the Northeast last year.

    It list the projects earmarked for the emergency rehabilitation and reconstruction in the Northeast as previously requested emergency World Bank-supported projects as:

    • Polio eradication support and routine immunisation project ($125 million);
    • Community and social development project ($75 million);
    • Nigeria’s states health programme investment project ($125 million);
    • State education programme investment programme investment project ($100 million);
    • Nigeria youth employment and social support project ($100 million); and
    • Fadama III Project $50 million (totalling $575 million).

    President Buhari also informed the Red Chamber that “our national Social Safety Net programme, which is intended to assist the poor and most vulnerable people in our society nationwide started this January 2017 with the first cash transfer payments in eight states.

    “For us to expand the programme to all the states, we need additional resources in addition to our 2017 budgetary allocation.

    “It is for this reason that I am requesting your early consideration of a proposed World Bank-assisted $500 million loan to help expand the assistance and support to the poor, our most vulnerable especially in these difficult times.”

    He listed additional emergency World Bank supported projects to include, “Social inclusion and welfare advancement project $500 million.”

    President Buhari noted that giving the current state of the country’s economy and the need to urgently address some infrastructural deficiencies in other to quickly improve the livelihood of Nigerians, “it has become imperative that we work together in an expeditious way to get our economy out of recession and back to growth.”

    He appealed to the Senate, for an expeditious consideration and approval of the requests, which he said will go a long way in bringing stability to the Northeast and improvement on the infrastructure and by extension a great improvement in the economy and livelihood of our people.

    “In view of the above, the Distinguished Senate is invited to urgently consider and approve all the above projects totaling a sum of $6.926 billion to enable us commence the construction and rehabilitation of the Northeast, provide for the poor and most vulnerable people and commence rail projects in earnest”, Buhari said in his memo to the senators.

  • Student loans

    •Low-interest loans will boost education

    One of the many challenges of Nigerian life is the huge difficulty that lies in the way of indigent students seeking to finance legitimate educational pursuits. In spite of the increased demand caused by the ongoing economic recession, the country’s student loans system is an inefficient mishmash of inconsistent service, high default rates and arbitrary policy.

    Reminding the nation of its obligations in this regard, Professor Friday Ndubuisi, the Vice-Chancellor of Christopher University, Mowe, Ogun State, has called on the Federal Government to establish a students’ loans board to help private university students to finance their education.

    With the advent of private universities, student fees can easily exceed N1 million a year. Even in the cheapest public schools, levies, dues and associated charges often approach N150,000, excluding accommodation and feeding.

    Few Nigerian universities have an established loans system for newly-admitted students. A few have scholarship schemes for their undergraduates who have met laid-down high educational performance targets. Banks and other financial institutions rarely grant loans for specifically educational purposes, instead choosing to offer dedicated savings accounts which require sustained contributions over a long period.

    Agencies like the Nigerian Students Loans Board are not as efficient as they should be. Information about the types of student loans on offer and the conditions governing their award is often hard to obtain. High rates of default and poor debt-recovery procedures have made it difficult to sustain the system.

    The end result is that needy students have no option other than to fall back on personal loans, inefficient state government bursary awards, and occasional philanthropy from individuals or non-governmental organisations (NGOs). With some 30 million students of its estimated 168 million population and a literacy rate of 61 per cent, it is clear that renewed efforts must be made to set up an efficient and equitable students loans system.

    Attempts at reform have included setting up a proposed Tertiary Education Fund and an Education Bank. The latter reached the second reading stage in the House of Representatives in May 2016. A Students Loans bill sponsored by Mr. Femi Gbajabiamila passed second reading last year.

    These legislative initiatives all aim at providing Nigerian students with reliable, low-interest loans with which to finance their education, as well as a fair, equitable and reliable means of repaying such loans. If they are successful, they would help to provide the new start the students’ loan system so badly needs.

    Schools would also be guaranteed a steady income from fees, enabling them to rehabilitate infrastructure and build new facilities, and ultimately achieve financial autonomy. Public schools would become less dependent on the charity of government.

    Fortunately, Nigeria now has the technological ability to monitor repayments much more closely than was the case before. The mandatory Bank Verification Number (BVN) registration process in banks enables funding agencies to track beneficiaries of loans and effectively sanction defaulters. Electronic banking procedures make the movement of funds seamless and dependable.

    As efforts to revive the students’ loans system gather pace, it is essential to remember that the huge demand for student financial assistance must be balanced against ensuring the long-term sustainability of the scholarship system. If the proper equilibrium is to be attained, there must be a fundamental alteration in the way these loans are administered.

    The new agencies proposed by the House of Representatives must not constitute another layer of bureaucracy in what is already an administratively-choked process. Financial safeguards must be built into their operation to ensure that they do not become another avenue for the promiscuous looting of public funds. Fully-audited accounts must be published when they fall due. Those who staff these bodies must be competent individuals dedicated to the efficient performance of their duties.

    Nigerian students have the intelligence and the commitment to attain their educational goals. All that they need is the guarantee of financial assistance.

  • Lagos set to release loans to 1,000 SMEs

    Lagos set to release loans to 1,000 SMEs

    Governor Akinwunmi Ambode led members of the State Executive Council and other top officials to Shibiri/Ekunpa Area Office in Oto-Awori Local Council Development Area (LCDA) for the second quarterly Town Hall meeting. There he spoke about what has been done and what to expect this quarter, including the release of loans to fresh 1,000 businesses, writes WALE AJETUNMOBI

    OTO Awori is a Lagos suburb. It is home to Alhaji Abimbola Suraju, a market leader. Suraju was shocked last Friday and he could not hide his excitement.
    “I want to sincerely thank Governor Akinwunmi Ambode for bringing this town hall meeting to Oto Awori. I never believed that in my lifetime that this place will host the Governor and his cabinet members. Before now they would always ask us to come to Ikeja, but this time around, they have come to our own community,” Suraju said.
    Suraju spoke when Governor Akinwunmi Ambode led members of the State Executive Council and other top officials to Shibiri/Ekunpa Area Office in Oto-Awori Local Council Development Area (LCDA), venue of the second quarterly Town Hall Meeting for the year and seventh in the series.
    At the meeting, he revealed the shape of what to expect this quarter, one of which is the fact that another 1,000 businesses will receive loans.
    Oto-Awori, one of the 37 LCDAs carved out from Ojo Local Government, has never hosted such delegation in recent years and the excitement on the thousands of residents that trooped to the venue to catch a glimpse of the Governor and listen to what he had in stock for them was enough to tell the story.
    During his opening remarks, Ambode said he was excited to be in the community to get first-hand information on the needs of the community and how his administration could respond accordingly.
    For him, Oto-Awori was part and parcel of his promise to run an all-inclusive government, thus no community would be left behind in the quest by his administration to ensure all round development of the State.
    “The train of our Quarterly Town Hall meeting has arrived in Ojo, the home of our dependable and reliable Deputy Governor – Dr. Mrs. Idiat Oluranti Adebule. I salute the good people of Ojo and the Lagos West Senatorial Zone. We are very happy to be here with you today,” the governor said.
    The governor took over one hour to allow residents cutting across community leaders, traditional rulers, market women, youth leaders and party leaders in the area to ask questions.
    On a request for a General Hospital, Ambode said three new facilities have been catered for in the 2017 budget.
    “Talking about General Hospitals, in the budget we have designated General Hospitals for three areas and Ojo Local Government is one of them. It is in the pipeline, it’s just a matter of time, we are already closing in on it,” he said.
    He also assured that efforts would be made to improve healthcare service delivery in the riverine area in Oto Awori, saying that residents in such areas have remained relevant in the government’s achievements over the years.
    “This area is traditionally and historically known to be a major supporter of government and then we must give them back for the support which they have always been known for,” he said.
    Ambode also acceded to the request of the residents for the rehabilitation of the access roads linking the area to the Alimosho General Hospital which they currently use pending the construction of a nearby General Hospital and at the meeting immediately directed the State Public Works Corporation to immediately fix the roads to improve accessibility to the facility.
    The governor also directed contractors handling the projects to immediately return to their various sites, warning that his administration would not hesitate to terminate such contracts.
    “If we are able to do a link bridge in 11 months, if we are able to do Ajah flyover in 13 months and Abule Egba flyover in 13 months and we are going to commission all of them next month, how can these roads be there forever? So, obviously we should use the same spirit of delivering service to do all the outstanding roads. The Ministry of Works must go back to these sites, I must know what is going on within the next few days,” the Governor said.
    He listed some of the projects to include Mile 10 Road, Mowo Road, Tedi Road, Ilaje Road, Goriola Oseni Road, Sabo Mosafejo Road and Imude Orisa Road where only 1.5km of the road was covered by the contractor.
    “These are contracts already awarded, it’s for our own contractors to go there and finish the job, so the responsibility is on us to make sure you deliver these roads within the shortest possible time and that’s what it should be,” he said.
    The governor also said he had approved that all the mini waterworks across the State, numbering about 41 should be functional within the next 12 weeks to ensure that residents have access to clean and portable water.
    On the plight of the physically challenged, Ambode also directed that the Civil Service Commission and the Local Government Civil Service Commission to put modalities in place to employ at least 250 physically challenged persons into the State Civil Service.
    He also ordered the Chairman of the State’s Sports Commission to offset all arrears of allowances owed the physically challenged athletes in the State next week.
    On his administration’s achievements in the last quarter, the governor said the Neighborhood Watch was rebranded and launched as the Lagos Neighbourhood Safety Corps and provided with equipment to combat illegal activities within the populace, explaining that the Corps will complement the efforts of the police in curbing crime and criminality in the state.
    Ambode added that within the quarter under review the Lagos State Employment Trust Fund continued to fulfill its mandate of providing subsidised loans to entrepreneurs, revealing that N1.7 billion was approved as loans to 1,400 businesses out of which N1.2 billion has already been disbursed to 800 people.
    “By the end of this month, loans to another 1,000 businesses will be approved, taking the total loans approved above 2,000. To further serve Lagos residents, the Fund will soon open the application process for skills development and training to help our unemployed youths take up existing jobs within the Lagos economy. I urge you to visit the Fund’s website or their liaison offices in the local governments to apply for their various programs,” he said.
    On agriculture, the governor said his administration has commenced the upgrade of the 167-hectare Songhai Model Farm in Avia-Igborosun, Badagry to encourage organic agriculture and train citizens interested in agro-business for local consumption or export, while 540 fishermen across the state were trained on the use of fishing equipment to improve their skills as well as optimize their understanding of the trade and boost income.
    On a request for the government to utilise the 300 hectares of arable lands in the area, the governor said he would visit the area with his team to access the land and look at the possibility of boosting the economy of the area through mechanised farming.
    Ambode said the government would kick start the implementation of the Cleaner Lagos Initiative, implement the construction of 181 roads across the 57 LGs/LCDAs, complete the Abule-Egba and Ajah flyover bridges, further signalisation of Lekki – Ajah express road and continuation of Road network upgrade in all the three senatorial zones.
    “Furthermore, initiatives for tourism will be intensified by commencing Development of Heritage Centre for Leadership (Presidential Lodge), Lagos History Centre, J.K Randle Centre, transformation of the Onikan Museum, Development of tourism hubs in Lagos-West, Lagos-East, construction of six cultural theatres in Alimosho, Badagry, Epe, Ikorodu, Ikeja and Lagos Mainland, and continuation of Epe and Badagry waterfront development as well as other tourist potential in the area,” he said.
    Ambode also said he was particularly excited that the 7th edition of the Town Hall meeting coincides with the 50th anniversary celebration of the creation of the state while he took time to appreciate the founding founders and his predecessors whom he said had worked assiduously in the last five decades for the growth and progress of Lagos State.
    “We appreciate the vision, tenacity of purpose and hard work which helped to shape our past and laid the foundation on which to build the prosperous future of our dear State,” he said.
    The people thanked the governor for the opportunity to engage with him. They will certainly look forward to seeing the promises coming to life in the next few months.

  • Govt okays $1.3b loans for DBN

    The Federal Executive Council (FEC) yesterday approved credit facilities of $1.3 billion to support the Development Bank of Nigeria (DBN).

    The Minister of Finance, Kemi Adeosun made this known at the end of the FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    She said the DBN has got $1.28 billion loans from some development partners, but the approval of the National Assembly is required to access the loans.

    The loans will be used to finance the many Micro-Small and Medium Enterpreneurs (MSME) in the country.

    She said: “The other memo was an approval for credit facilities totaling $1.3 billion to support the DBN. As you know the DBN recently received its licence and is been funded by some long term loans from some of our development partners.

    “So the World Bank had given us $500 million repayable over 21 years and all of this is at concessional rate. The African Development Bank (AfDB) are giving us $450 million and KFW are giving us $200 million and the French Development Agency are giving us $130 million.

    “To access this money, we are ready to disburse but there were two requirements that we need to make and one of them is the legal opinion by the Attorney General of the Federation and the other is the National Assembly’s approval.

    “Before it goes to the National Assembly, it needs to be approved by FEC and the FEC simply approved today so that these loan requests should go to the National Assembly for approval. So we can access this money and the DBN can take off fully as it is expected to transform financing to our MSME sector.

    “The Council enthusiastically approved these facilities which are long tenor meaning that the DBN will be able to lend to our MSMEs over much longer periods and at much lower rates. So the impact on the SMEs will be quite considerable.”

    On the fear that the loans will add to the rising debt profile of the country, she said  focus should be placed on the uses the loans will be put and not on debt profile.

  • Banks’ loans to oil, gas, power firms hit N4tr

    •Financial institutions may go to capital market for funds

    Nigerian banks are battling imminent liquidity crisis over huge exposure and non-performing loans to oil and gas and power sector, which is presently in excess of N4 trillion, The Nation has learnt.

    The situation is making it difficult for operators in the oil and gas and power to secure loans for operations.

    Head, Energy Research, Ecobank Group Mr. Dolapo Oni told The Nation banks could not release funds to oil and gas industries because there was no fund to release unless they go and raise money in the capital market.

    He stated that this year, a lot of banks will go to the market to raise capital “because if they don’t raise capital, there will be nothing to lend”.

    Oni said: “Banks don’t have funds to release unless they go the capital market to raise capital. If they don’t raise capital, there is nothing to lend. A lot of banks are exposed to 30-40 per cent of their loan books to oil and gas.  The implication of this is that if oil price continues to remain low, most of those banks will start recording losses on those particular assets.

    “Currently, we have about 12.8 per cent of all loans that are non-performing in banking industry, and the bulk of that is from the power, oil and gas sector.

    “So, it is pushing the banking industry into a region that they are approaching a crisis in terms of non-performing loans. Also, the banks have an issue of foreign exchange (forex) in their hands. Most of the loans are in dollars and these companies that took loans are not getting dollars. So, the banks have dollar issues too.

    “Besides, those banks borrowed from their foreign bankers to lend to the oil and gas companies and so, they are finding it difficult to pay their own foreign bankers too. I think for the banks to continue their duties, they need to raise capital or there will be no funds to lend to the oil and gas this year. Next year, things might be a lot easier and we will see banks lending to oil and gas and power sector.

    “As at Q3 (third quarter) last year, banks’ exposure to oil and gas and power sector was N4 trillion but as the value of Naira depreciates, the amount of those loans rise because the loans were in dollars. Also, by the time the Central Bank of Nigeria (CBN) comes out with its 2016 report, banks’ exposure to the energy sector may be much higher.”

    Oni added that the CBN was not providing enough dollars to the banks, but noted that the apex bank “is having meetings with the banks to see how (they) banks will source more dollars to pay their foreign bankers and other clients”.

    “But unfortunately, CBN insists it doesn’t have such dollars,” the banker said.

    To resolve the forex problem, he said the “Federal Government needs to deregulate the forex market fully so that people can come into the market”.

  • Make loans accessible, body urges govt

    The Association of Economists and Statisticians of Nigeria (AESN) has advised the Federal Government to make loan accessible and affordable to all.

    AESN Vice President, Mr. Olusola Gbadamosi, who spoke during the associations 12th mandatory seminar and 11th induction programme in Lagos, said there is need for government to give more loans to people at zero interest and make the loans accessible, so that people can begin to do something given  the current economic recession.

    He spoke on:  Opportunities in Recession.

    Gbadamosi, who is also the managing partner of Bofas Consulting, identified some of the opportunities people can engage in to minimise the effect of recession to include, diversification into production of essential items.

    “The country is no more about oil; it is now about agriculture, vocational skills, training and re-training. Virtually all homes and families are feeling the recession; people do not have jobs, people are being laid off and people are suffering,” he said.

    A Senior Lecturer in the Agriculture Extension & Management Department, Lagos State Polytechnic (LASPOTECH), DrWoleOgunyemi also urged Nigerians not to allow the economy to slip into depression.

  • Presidency: 1.2m Nigerians to get single-digit loans

    Presidency: 1.2m Nigerians to get single-digit loans

    The Federal Government  on Sunday  said 1.2 million Nigerians would be given soft loans at two or three per cent interest rate as part of efforts to create jobs under its social investment programme.

    Mr Laolu Akande, the Senior Special Assistant to the Vice President on Media and Publicity, said this when he appeared on the News Agency of Nigeria (NAN) Forum in Abuja.

    He said the Federal Government was synergising with its enterprise agencies with the private sector to achieve the goal.

    He named the agencies as Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Bank of Industry (BOI), Bank of Agriculture and National Directorate of Employment (NDE), among others.

    ”About 1.2 million Nigerians are going to be given soft loans, may be at two or three per cent, loans of N20,000 to N50,000, N100,000; the traders, for people that have small businesses.

    “We are going to be using co-operatives, so all these groups mentioned will be working together because we believe small and medium enterprises are very critical to the recovery and rejuvenation of the economy.

    “So, we are working to design all kind of intervention financial facilities since we are not getting the kind of affordable loans in the main banking sector.

    “So, we are using the intervention funds to release money to small and medium scale enterprises so that they can trade with the money. with very little interest two or three or four per cent.’’

    He said that the Federal Government was hoping to do more for Nigerians using the intervention fund as part of its social investment programme.

    He said that the SMEDAN, BOI, Bank of Agriculture, NDE, others had been harnessed to provide such support.

    Akande said the government would continue to use resources from the agencies to actively boost social investment programmes.

    “We are working with these agencies to have that kind of glory of affordable loan to 1.2 million Nigerians to do trading of different kinds,’’ he added.

    He gave the assurance that the Federal Government would soon generate 7000 megawatts (MW) of power.

    Akande said that government was working assiduously to step up power generation from 5000 mw to 7000 mw.

    He said that the country began to experience low electricity supply due to pipeline vandalism and the bombings in the Niger Delta.

    ”When the administration came in as a matter of fact we were doing less than 300mw.

    He said that the Federal Government had signed a Memorandum of Understanding (MoU) with companies that would supply gas that would ultimately increase the output to 5000 mw.

    Akande said that by rejuvenating some of the transmission facilities and infrastructure government was doing what is called “incremental power ‘’  to bring up the megawatt.

    He said that there were plans also by government to effect public, private partnership to ensure that Mambila project came on stream in power generation.

    On the issues of idle power plants Akande explained that the truth was that “a lot of those plants, facilities are just there and not being utilized.

    “The power plants are all disconnected and we are trying to fix them so that the plants will bring significant increment to the output.

    He said that rather than new taxes the government was expanding the coverage area in its Value Added Tax (VAT) drive to generate more income.

    ”Essentially, we are not increasing VAT at this time, but what we are trying to do is to increase the coverage of VAT.

    ”So, for instance now, if  VAT is only coverable for the 10 per cent that it should cover and you know the current rate is five per cent.

    ”We want to increase the coverage to 20 per cent because we believed that by just increasing the coverage, we are going to get in more revenue.

    Akande, however, said that the council was looking at a whole lot of things happening in the business environment to encourage people to invest and to promote their businesses.

    He said the government wanted to ensure that those who want to get   all kinds of approval for business purposes could visit only a one stop shop.

    According to him, we have installed one-stop-shop government policy approach.

    ”That is if you are a businessman and you have dealings with government.

    ”You do not have to go to Ministry of Finance today, Federal Inland Revenue Service or CAC tomorrow, among others you just have to go to one agent.

    ”Whatever you need from those agencies of government, the one stop shop will be the one that will do the running around.

    ”So, things like that are going on and we are actually trying to see that people do not suffer double taxation,’’ he said.

    He assured Nigerians that the government was doing its best to ensure a conducive environment for businesses to thrive

    According to him President Muhammadu Buhari’s economic team is composed of competent and tested people with significant private sector experiences.

    ”The major problem of Nigeria’s economy is a problem of vandalism of our oil installations and also the drop in the prices in the international oil market.

    “Look at what we have been able to do in spite of all these problems. In spite of the drop in revenue we have paid out almost N800 billion for infrastructure, for capital projects, more than what was budgeted for last year.”

  • 150,000 get loans from Catholic agency

    The Catholic Bishop of Ijebu-Ode, Albert Fasina and Rev. John Ngoyi, have urged government to tackle poverty in the country.

    The clerics said unless Nigerians, particularly women, were empowered, there might not be peace in the land because of hunger.

    The duo spoke in Ijebu-Ode, Ogun State, at the weekend during the recognition and award ceremony for women, who excelled under the Centre for Grassroots Economic Empowerment (CGEE) scheme of the Justice Development and Peace Commission (JDPC) of the Catholic diocese of Ijebu-Ode.

    Rev Ngoyi, director of JDPC, said about 150,000 women from Southwest states, including Kwara, had benefited from the CGEE soft loan scheme since it began in 1992.

    He said a beneficiary received at least N50,000 take-off loan and tutorial on skills for running small enterprises.

    Ngoyi added that CGEE is the Catholic’s answer to Christ’s call on the church to care for the poor, the downtrodden and widows, explaining that everybody must be involved in the struggle to get Nigeria out of recession.