Banks operating in Edo State have been urged to increase their investment in small and medium scale enterprises in Edo State. This is because the state is not ranking well among the top beneficiaries of the N28.2bn fund across the country.

The Senior Special Assistant to Edo State Governor on Policy and Economic Strategy Taiwo Akerele stated this while addressing his former colleagues in the banking industry at a cocktail in his honour. He stated that for Comrade Oshiomhole to reduce unemployment drastically by at least 60% he needs the support of the banks.

Currently Edo State share of the Small and Medium Scale Industries Equity Investment Scheme (SMIEIS) according to latest CBN report stands at only N493million in just six projects compared to Lagos (11.6bn), Cross Rivers (6.1bn), Ogun (1.9bn) Rivers (1.7bn), and Ondo (N622m). It is appalling that despite the fact that Edo State is one of the most peaceful states in Nigeria in terms of investment climate only 1.75% of the fund is invested in the state. The State Government will not hesitate to take this issue up with the appropriate authorities.

It is regrettable to note that the fund is invested in only 6 projects across the state despite the thousands of eligible applicants. This is not good enough. Mr Akerele also stated that his office has commenced the process of monitoring and capturing the level of new investments in the state. This is because the level of investment whether local or foreign will affect the unemployment situation in the state and also drastically reduce the pressure on government.

According to him, there is no greater economic strategy than to empower small scale business across the state through micro-credits at low interest rates. The Bangladesh economy according to him was revived with low interest rates, and more so despite the economic crunch in Europe and America, interest rates still remain at less than 3% per annum.

In as much as the Government is ready to do business with banks operating in the state, the banks must take deliberate steps to partner with the Government in areas such as school renovation or adoption, soft loans to small scale businesses at bottom rock interest rates, encourage agriculture production, scholarship award to students studying professional programs and also help in beautifying some roundabouts across the Benin metropolis taking a cue from Lagos and other parts of the country.

TAIWO AKERELE,
Senior Special Assistant to the Edo State Governor (Policy and Economic Strategy)