Expert Harps On Long Term Capital For SMEs’ Growth 

A financial expert and the Chief Executive Officer of UT Finance Limited, Ade Adebanjo, says long term capital is required to catalyse growth in Small and Medium Enterprises and make them more viable and sustainable.
He said that many companies could not survive on debt and therefore would need long-term capital.
Adebanjo who made this known on Monday while speaking to journalists at the Port Harcourt International Airport in reactions to the input of financial institutions on agriculture and small scale enterprises, noted that banks were making inputs for SMEs in a sustainable way.
He disclosed that there had been a contribution of over N26 billion in equity fund while a financial committee of banks and finance institutions was still working on framework, and looking at issues of partnership.
“Banks have been made to contribute five percent of their Profit After Tax (PAT) to a fund in CBN towards contributing equity to agriculture and SMEs.
“ We are looking at co-investing with private equity firm as well, and the objective is to catalyse growth in SMEs to ease access to finance to build capacity in the agriculture and SMEs sector to create jobs and ultimately improve prosperity.
“The economic development of the financial institutions committee is working with the development finance and legal department under the supervision of the Central Bank of Nigeria.
“We also want to ensure that there is the right governance around the equity fund, and it is our own contribution to economic growth and prosperity in the country towards the growth of the SMEs,”he said.

By: Corlins Walter