Double digit interest rates is the reason some agencies don’t survive, says Abisoye
Renowned Marketing Communications professional and founder of Sodium Group, Abisoye Fagade, has cited unresolved issues of security and high interest rates on loan as major factors that kill businesses in Nigeria.
Mr. Fagade who said this during an exclusive interview with MARKETING EDGE in Lagos threw more light on some of the grey areas that requires intervention of government and professionals in view of a better business environment.
In his words: “Government can assist by granting the Industry access to single digit interest rate loans. The truth is that a lot of agencies source funds to execute major projects pending when the clients eventually pay. Some of these sources charge huge interests on loans and it in turn affects the profit margins. This is part of the reasons why some agencies don’t survive beyond their first few years of formation.”
He further stressed that security threats facing road shows and activations also needed to be resolved as hoodlums and area boys sometimes interfere in the running of these activities.
“Provision of security permit for road shows and activations is another way the government can help. If, for example, an agency gets a permit from the government for a state-wide project, the permit should protect the agency from area boys (hoodlums) as it would be seen as a government approved project. And they would not disturb the activations just like they won’t disturb a government agency performing its duties. The provision of such powerful permit would go a long way in assisting the industry,” he said.
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