Founder of Afe Babalola University, Ado-Ekiti (ABUAD), Aare Afe Babalola (SAN), has expressed concerns over the rising bank interest rates in Nigeria, describing the development as one of the major obstacles to economic growth and the empowerment of ordinary citizens.
Speaking at the weekend during the 2nd edition of the annual Aare Afe Babalola Day at the Ewi’s Palace, Ado-Ekiti, Babalola lamented that the harsh lending conditions imposed by banks have made it nearly impossible for small business owners and farmers to access credit facilities.
He said that the prevailing 20% interest rate has crippled the capacity of ordinary Nigerians to start or expand businesses, thereby worsening the two hydra-headed monster of unemployment and poverty levels in the country.
Babalola explained that the present economic situation has worsened with multinational companies relocating out of the country and the living conditions of Nigerians deteriorating.
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“The way things are today with many of the multi-national companies relocating out of the country, no reasonable investor wants to come and invest in Nigeria,” he lamented.
He recalled that there was once a time in Nigeria when everyone, regardless of their profession, maintained a small garden for farming and had enough food to eat and share.
Babalola contrasted that era of plenty with the present, which he described as a period of hardship, saying the country now suffers from poor infrastructure, erratic power supply, and widespread insecurity.
In response to the economic challenges, the Legal icon said he established two cooperative societies with a combined capital base of N200 million to provide soft loans for at least 2,000 people at a minimal interest rate of five percent.
Babalola explained that the initiative was conceived as a direct intervention to support artisans, traders, farmers, and other low-income earners who have been locked out of the formal financial system due to stringent banking policies.
He added that the cooperative societies are already operating effectively and have begun making significant impacts in lifting the people out of poverty and idleness.
He, however, appealed to more Ekiti indigenes to join the cooperative groups, stressing that collective participation and prompt repayment of loans would ensure the sustainability of the scheme and the eventual eradication of poverty.
“If members follow the workings of the cooperative societies by repaying their loans on time, sooner than later, poverty and unemployment would be a thing of the past,” Babalola said.
At the event, Babalola made a donation of N100 million toward the completion and beautification of the palace pavilion, besides the N100 million donated to the two cooperative societies.
Ekiti Governor Biodun Oyebanji said that Babalola has immortalised himself by building human resources across Nigeria that will outlive him.
Oyebanji said that the legal luminary has made tremendous impacts in the lives of many Nigerians through philanthropy, his legal profession and establishment of ABUAD, where thousands of citizens are deriving their livelihoods and enhancing their careers.
The Governor, represented by his Deputy, Chief (Mrs) Monisade Afuye, said that the government of Ekiti State is proud of the achievements and life trajectory of the elder statesman, who emerged from a humble background and turned out to be a shining light across Nigeria and globally through his industry, innovation, character, honesty and philanthropy.
