Merit Ibe
Lagos Chamber of Commerce and Industry (LCCI) has called for a continuos review of the process of making credit available to those who are to benefit from the recent intervention fund by the Central Bank of Nigeria (CBN).
Its Director General, Mr Muda Yusuf, made the call during a business seminar organised by the chamber to sensitise participants, who were mainly young business men and women, on the opportunities in the Nigerian economy.
His plea followed CBN’s recent palliative measures to critical sectors of the economy to cushion adverse effects of coronavirus on Nigerian businesses.
The apex bank also created a N50 billion credit facility through NIRSAL Microfinance Bank for households and small and medium sized enterprises (SMEs) that have been particularly hard hit by Covid-19, including, but not limited to hoteliers, airline service providers, health care merchants and so on.
Yusuf, who agreed that the intervention funds have had positive impacts on a number of businesses, noted that different challenges have impeded business owners from accessing the funds, suggesting the need for CBN and banks to continually review the process of making this credit available to those who are targeted to benefit from it. “So, we need to continually review the process and criteria to ensure that the objectives of setting up these funds are achieved.”
With the invasion of Covid 19, Yusuf posited that the bigger issue now is health; saying public health management is crucial, and advised that more attention should be geared towards research mobilisation and being able to manage the situation.
Emphasising the need to build the confidence of investors, which he said had practically collapsed due to the virus, he said that can only be achieved by being able to contain the problem of the virus.
“Public health management and strategy for effective preventive and response strategy to contain the spread of the virus is crucial now.
“Only a living and healthy person will do business. If the economy is collapsing, what will you achieve. The issue now is how to build the confidence of investors because confidence has practically collapsed.
“In advanced economies, where a lot of stimuli have been sent, nothing is changing, their stock market is crashing, because confidence is collapsing.”
He noted that intervention, containment and awareness were important, adding that research mobilisation should be more towards being able to manage the situation.