The Federal Government has enjoined the nation's banking industry, to as matter of priority; reverse their interest rate on loan from 20 percent to about 12 percent in order to encourage the growth of private investment and small and medium enterprises (SMEs) in the country.
The Minister of Finance and Coordinating Minister of the Economy, Dr Ngozi Okonjo Iweala said this at the pre-commissioning of multi-million Naira ultra modern Cold Roll Steel Mill Complex, by Kam –Industry located in Ilorin, the Kwara State Capital.
Dr. Okonjo commends the management of Kam industry for their giant stride as the first indigenous company to establish cold roll steel plant of that magnitude in the country; saying the Company represents the outstanding example of what President Jonathan-led Administration in the country is trying to accomplish in his transformation agenda, premised on industrialization that will create jobs for the teeming youths of the country.
She underscores the role of steel sector as a key factor to the nation's economy which prompts President Jonathan to graciously grant sector approval in January, 2012 for the new and existing industry in steel sector to import their machineries and equipment, spare parts for establishment of cold roll steel plant at zero percent duty.
Dr. Okonjo disclosed that total of four companies had so far benefited from the Federal Government special investment incentive packaged for the sector, in recognition of the local production of cold steel roll as a foreign earners for the country through import substitution and stimulation of other local entrepreneurships that will generate employment for the unemployable youths in the country.
She acknowledged that the Federal Government recognizes the challenges that stalled the industrial growth and development in the country like infrastructural decadence, inability to access the capital and other related challenges of nature, which led to high cost of production within the local manufacturing industry. She also said that Government is moving aggressively to establish the enabling environment for both local and foreign investment to thrive.
According to Okonjo-Iweala, the Jonathan's administration is intensifying more efforts to stop the problem of power and tackling the infrastructure decadence which is the highest impediment that companies.
She therefore, called on the Kam industry and other private sector in the country to strive for greater productivities that will satisfy the local market as well as ECOWAS regional market.
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