The management of Omatek Ventures Plc has called on the Federal Government to come up with sustainable policies to help manufacturers and small-scale enterprises to fund their businesses by ensuring that they can borrow from financial institutions at a single-digit interest rate.
The Managing Director, Omatek, Mrs. Florence Seriki, made the call during a visit by the Minister of Trade and Investment, Mr. Olusegun Aganga, to Omatek’s ultra modern factory in Lagos on Monday.
She said that the major challenge crippling businesses and manufacturers in Nigeria was inadequate funding, adding that high interest rates on borrowings were not favourable to the survival of small businesses.
Seriki said, “I will like the Federal Government to support manufacturers and small businesses in the country through the creation of sustainable policies that will help to boost their businesses. It is unfortunate that we are not getting the support from our local banks as the interest rate on borrowing is on the high side.
“Here at Omatek, we have been surviving through borrowing offshore, and so, we ask the Federal Government to assist us by ensuring that we can borrow from the banks at single digit; this will go a long way to help us reduce our cost of doing business, thus boosting our profits and shareholders’ value.
“Many countries have used the Information Communication and Technology sector to drive their economies, and Nigeria should not be left out of this; our company, for instance, has become a major manufacturer of a local brand; and so, we seek an intervention fund for manufacturers.”
Aganga said that the ministry was ready to support local manufacturers in funding their businesses.
He explained that patronage of locally-made goods was key to the activities of the ministry, adding that the ministry would partner Omatek and other local industries to boost their production and patronage of their products.
The minister said, “Firstly, we are in the process of changing our name to the Ministry of Industry, Trade and Investment so that we will not be neglecting the industries in our scope of activities. We are delighted to note that Omatek has about 6,000 shareholders and we commend the level of manufacturing, patronage and passion the company has displayed.
“This ministry is impressed by all the work that is going on here and we will be excited to partner with Omatek to ensure that the business is boosted. We will also be working with the capital market to raise funds for other manufacturers.”
Also speaking, the Chief Executive Officer, Nigerian Stock Exchange, Mr. Oscar Onyema, called on corporate organisations and listed companies to take advantage of the Exchange to fund their businesses.
He said the Exchange was ready to support companies that would want to raise funds from the primary market, adding that companies which had long-term funding needs could come to the primary market to raise funds.