BY NAOMI UZOR
The Lagos Chamber of Commerce and Industry (LCCI), has decried dearth of credit facilities to investors. In a statement,Tuesday, the Director General of LCCI, Mr. Muda Yusuf, said: “It is clearly more attractive now to invest in government securities than to invest in ventures that would create jobs.
“Even banks now would rather buy treasury bills and government bonds than give loans to investors. This credit and interest rate structure would continue to create distortions in the economy, which will only perpetuate the phenomenon of jobless growth and further depresses the stock market,” he said.
According to him, banks tolerance of manufacturing sector continues to decline because of the perception of the sector as very risky as many SMEs lack the capacity to package bankable credit requests, adding that some are too small to access credit individually.
“Many entrepreneurs cannot meet the banks’ credit requirement, especially collateral; Experience of the banks with loan quality of manufacturing and other real sector investors would not dispose them to give further loans; monetary policy tightening of the CBN has pushed up cost of fund; Risk asset provisioning requirements of the CBN is a disincentive to lending,” he said