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Border re-opening won’t negatively affect MSMEs’ growth, says Radda

By Anthony Otaru, Abuja.
20 December 2020   |   2:59 am
The Director-General, Small and Medium Scale Development Agency of Nigeria (SMEDAN), Dr. Dikko Umaru Radda, has said borders re-opening by the Federal Government will not have a negative effect

An aerial picture on December 17, 2020 shows a part of the Benin-Nigerian border city of Krake, one day after Nigeria announced the lifting of borders’ closure. – Nigeria is lifting the closure of borders with neighbouring Benin and Niger which it imposed in 2019 to curb smuggling of rice and other commodities, the government said on December 16, 2020. The closure had a major impact on Benin, a key exporter of foodstuffs to Africa’s most populous country via its port of Cotonou. (Photo by Yanick Folly / AFP)

The Director-General, Small and Medium Scale Development Agency of Nigeria (SMEDAN), Dr. Dikko Umaru Radda, has said borders re-opening by the Federal Government will not have a negative effect on small-scale enterprises’ growth in Nigeria.

Radda said: “Government cannot continue to close the borders, because the earlier closure was to produce what we eat. Today, we have achieved that feat. We presently eat our rice. I don’t think there is a need for micro, small and medium enterprises to exercise any fears. It is even an advantage for our local farmers and small scale entrepreneurs to export what they now produce to other African countries.”

The SMEDAN DG gave the assurances while briefing Journalists on the agency’s achievements in the last one year in Abuja.

He revealed that income first quarter of 2021, SMEDAN micro-finance banks will come on stream to boost Micro, Small and Medium Enterprises (MSMEs) loan capacity at reduced interest rates to expand, create more jobs, and positively grow the economy.

He explained that MSMEs have suffered a huge loss in the past, due to their inability to pay the high-interest rates charged by commercial banks, which ranges between 20 percent and above, and that when it comes alive, the SMEDAN microfinance bank will ensure that interest rates for a loan to MSMEs will not exceed single digit.

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