…Says business investments, food production, dying
Senator Ahmad Lawan, president of the Ninth Senate, has lamented that the high interest rate of 34 percent on commercial bank borrowing is affecting business investments and food production in the country.
He said the high interest rate made it difficult for local businesses and farmers to declare profits and compete favourably with their counterparts in other countries offering very low interest rates.
According to a statement by his media aide, Ezrel Tabiowo, in Abuja yesterday, Lawan stated this while speaking to journalists after flagging off the distribution of grains and food materials to the vulnerable in his Senatorial District of Yobe North.
He explained that his foundation, the Senator Ahmad Ibrahim Lawan (SAIL) Foundation, distributed food items to complement the Yobe State government’s efforts to provide relief to the poor and needy during the festive period.
He urged political leaders to find a lasting solution to the nation’s economic and security challenges, adding that bailouts and interventions, including the distribution of food items, are merely temporary measures that do not address the real problems vulnerable Nigerians face.
He said, “Those of us who can afford it need to help those who are in dire need. It is no secret that many Nigerians are in a very desperate situation. This intervention gives solace and some relief, especially during this festive period.
“We intend that these food materials should go down to those who are distressed and vulnerable to the economic situation in the country, and it is not enough.
“Such an intervention can provide some relief for some time. However, our desire and wish is to make every Nigerian self-reliant. Bailouts like this, or stopgap arrangements cannot stop the problems. But, before we reach that destination, we have to do something like this.”
The statement added that Lawan underscored the crucial role played by state governments in complementing those of the federal government in delivering good governance.
He expressed hope that the economic reforms introduced by the President Tinubu administration would yield the desired results in 2025.
Lawan, in part of the statement, said, “I’m looking forward to a very successful 2025 that sees an end to all these economic situations that we face and that those economic reforms introduced by the federal government will yield the fruits that we had expected.
“But governance is beyond the federal government. The state governments also have some critical and crucial roles to complement what the federal government has done.
“Here in Yobe, the state government has been doing very well. Recently, it distributed food items to the vulnerable. Whatever we do here is to complement what the state government is doing, and I’ll advocate that every state does it, but this is not the solution.”
The former Senate President bemoaned the plight of Nigerian farmers in some North-Western federation states, most of whom, he noted, have lost their source of livelihood due to the spate of insecurity.
He said, “We should start thinking about how to make our farmers go back to the farms. In some states of the North-West, the bandits have made it difficult, if not impossible, for them to go to the farms. Most of the people are peasants who depend on farming.
“Now that they cannot go to the farms, what else will they do? So, we must as leaders work for our farmers to go back to the farms, and, not only that, provide the right inputs at the right time to help them get the best yields.”
He called on the federal government to immediately address the high interest rates fixed by commercial banks on borrowing, which, according to him, have become prohibitive for business investments and food production in the country.
Lawan said, “We must also do something to make funds for investment accessible. Today, the interest rate is prohibitive; in fact, it is callous. In other countries, they give half percent of interest rates, but today, in this country, it is probably 34 percent when you go to the bank to borrow.
“How would you invest and compete with farmers from countries that give half percent interest rate? We need to do so much. But before we reach that destination, we must intervene and come in to support our people.”
