Fidelia Okafor

The Manufacturers Association of Nigeria (MAN) has decided to compile names of commercial banks charging above nine per cent single-digit interest rate on loans given to its members.

MAN said the banks had frustrated its members from accessing the over N1.205 trillion various intervention funds.The association added that it would report and submit the lists of the defaulting banks to the Central Bank of Nigeria (CBN) and ensure that the apex bank impose sanctions on the erring commercial banks, which may include an outright ban on them from further participating in the apex bank’s intervention funds.

MAN’s President, Dr. Frank Udemba Jacobs, said that banks were still frustrating manufacturers and others from accessing the various intervention funds guaranteed by CBN in the country.

The intervention funds include the N220 billion Micro, Small and Medium Enterprises Development Fund, the N235 billion and N750 billion intervention funds for the manufacturing and agricultural sectors and the N500 billion loans for non-oil exporters.

According to him, the CBN has given various intervention funds for micro small and medium enterprises (MSMEs) operators at a single digit rate to assist them re-jig their businesses, but commercial banks had frustrated the efforts of the banks.

He noted that this was contrary to why the intervention funds schemes were established by the CBN and the Federal Government.

Jacobs stressed that the association was ready to work in conjunction with the CBN to ensure that banks operating in the country give the loans to the operators in the real sector of the economy at the stipulated nine per cent single digit interest rate.

The president explained that the CBN meant well for the operators in the real sector of the economy through the various intervention funds schemes, but the banks were frustrating MAN members from accessing the credits at single-digit interest rate. Jacobs said: “We are ready to report to CBN on the banks that are charging above the nine per cent single digit interest rate in the country.

We will work with the CBN on this intervention funds because the CBN means well for manufacturers, SMEs and farmers, who want the loan to boost their production and contribute to the growth and development of the economy. “But we know that the banks are the ones frustrating the accessibility of these loans.

“We won’t hesitate to compile lists of the banks flouting the CBN directive on the intervention funds and collaborate with the CBN to ensure that the affected banks are sanction accordingly, especially as a participating financial institution in the country.”

The president noted that private sector operators and manufacturers were groaning over non-access of the intervention funds from commercial banks despite the CBN’s assurance that the loans were available for manufacturers at the banks.

Jacob explained that the current economic recession and harsh operating environment had made it impossible for firms to operate at ease in the sector.

He added that intervention funds for the industry at this period were meant to help cushion the effect of the lingering economy recession on their operations.

Jacobs noted: “We’ve been saying that the manufacturing sector needs intervention fund from government to survive. You know that one of the challenges confronting the manufacturing sector is fund.

So, intervention funds have come and gone for MSMEs. But majority of these intervention funds from CBN do come at a high interest rates, which is not supposed to be so.”