Anyone borrowing money in Nigeria to start up a business can pay as much as 28% interest rate or even more.

You will also provide collateral that must meet the requirement of the bank.

It is a situation that has discouraged many Nigerians with the intention of setting up a business from starting.

There may be succour, however, for small business holders that need money, as the Senate intends to discuss this high rate with the Central Bank of Nigeria to reflect our economic reality.

Senate President Bukola Saraki told reporters on Sunday that the lawmakers will examine the situation.

“It is likely that we will debate it this week,” Saraki said during an interactive session with journalists in Ilorin.

According to him, the high interest rate is not good for the economy as the nation eases out of recession and targets growth.

 “This week we will debate it, have a round table discussion with the Central Bank of Nigeria and other commercial banks and talk frankly to ourselves,” he said.

According to Saraki, it is not fair for the banking sector to be making astronomical profit while companies lose money and retrench workers.

“Hopefully, with the stability of the foreign exchange, we can now begin to address the issue of interest rate.

“There is no business that can make money if you are borrowing at 28%, it cannot work,” Saraki emphasised.

Part of the plan is to engage financial institutions to arrive at an affordable interest rate.

“If they refuse, the Senate may come up with legislation to peg the interest rate.”

According to him, the banks are charging high interest rate because they have tied their assets in government securities and are getting 18% to 19%.