With interest rates reduction in Nigeria by the Central Bank of Nigeria (CBN), banks’ lending rates still remained deplorably high.
The Premium Breadmakers Association of Nigeria (PBAN) has said that commercial banks are still demanding as much as 34 per cent interest on loans to small businesses
According to a report, the association also revealed that about 40 per cent of its membership had been lost in the last two years due to the harsh operating environment, rising energy costs and difficulties accessing affordable credit.
These were disclosed yesterday by the President of PBAN, Emmanuel Onuorah on the sidelines of the association’s 2026 Day-Out event with the theme: ‘Baking Through the Economic Storm: Innovation, Efficiency and Growth for a Sustainable Industry, held in Lagos.
Onuorah alleged that financial institutions, particularly the Bank of Industry (BoI), had failed to provide the necessary financial support to genuine entrepreneurs in the country.
The CBN, had in September, cut the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent, arguing that this would further encourage business growth.
But, Onuorah lamented that the prevailing lending rates had made it almost impossible for bakery operators to access funds for expansion, modernisation, and the adoption of alternative energy sources.
He disclosed that despite the CBN’s recent monetary policy adjustments, he was offered a loan at 34 per cent interest, alongside a requirement for 20 per cent counterpart funding, to finance a N12 million solar energy project for his business.
He added: “How do I pay back the loan when you are charging 34 per cent interest? We are not asking for free money. We are asking for single digit interest rates that can help small businesses grow.
Quote me on this, no PBAN member has received a Bank of Industry loan. They give these facilities to politically exposed people and those who do not need them, rather than businesses that require the money for growth and development.”
He decried that the stringent requirements imposed on small businesses had continued to frustrate their access to financing.
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