The federal governments proposal to grant low interest loans to small and medium scale enterprises has led to questions about fair and efficient distribution among members of the public.
No doubt the huge loan scheme cannot be divorced from the campaign to win votes in 2019. But from figures, 25000 SME’s could benefit and have a positive impact on the economy.
However, as with all good proposals, effective implementation is paramount.
For instance, Nigerian banks might well argue that only they are equipped to ensure fair, objective and efficient distribution; that disbursement through government agencies could be prone to massive corruption, cronyism an squandering of public funds. All they should need are govern guidelines on disbursement.
How about repayment and the monitoring of borrowers’ performance?
Here again the banks can argue that only they are equipped to efficiently receive payments and monitor borrowers performance.
When will the loan be given, and over what period of time? The elections are only a few months away – a rushed distribution can lead to disaster and adverse publicity.
If the moment there are more questions than answers.
A federal government classification should show that the loan scheme is intended for the public good and could be implemented in an efficient and beneficial manner.
