Economy
PRODA Staff Multipurpose Cooperative Society Ltd has advised the Federal Government to introduce reforms that would lower lending rates to stimulate investments across the country.
Its President, Mr Sumaila Ochu, gave the advice on Monday in Enugu during an interview with the News Agency of Nigeria (NAN) on the sideline of the society’s 2019 Annual General Meeting (AGM).
The cooperative society, which was formed in 1980, had some of its members in Project Development Institute (PRODA) and Science Equipment Development Institute (SEDI), Enugu.
Ochu, who was elected during the AGM, said cooperative societies needed single-digit interest rates on loans to thrive.
The president said that the call became necessary due to the critical role of cooperative societies in the economy and the high interest rates on bank loans.
According to him, the government, through the Central Bank of Nigeria (CBN), should institute a single-digit interest rate regime of between two to five per cent on loans of five years period.
“The high interest rate on bank loans is not healthy for any business that needs funds to thrive.
“This is one area we need the government’s intervention through the CBN to build special loan package for cooperators at single-digit interest rate for five years,” he said.
Ochu said that such step would enable cooperators to expand their sources of income for further investments which was necessary to meet the loan demands of members.
Ochu said that the society had grown since its formation from an ordinary one to a multi-purpose one and had impacted on the lives of PRODA and SEDI members of staff and retirees.
He said that his administration would build a robust internal control mechanism to check wastage.
Ochu also promised that the society would be making more investments in the days ahead. (NAN)
-Sep 30, 2019 @ 15:39 GMT |
Tags: cooperative society advises Reduce lending rates for investment growth
