The National Association of Proprietors of Private Schools (NAPPS) has made a call for financial institutions in the country to grant its members access to long-term loans.
The Deputy National President of the association, Chief Yomi Otubela, made the appeal in a media interview in Lagos, were he said the measure would help the private schools to expand and upgrade their facilities.
“Presently, we are battling with the fact that financial institutions in Nigeria do not have long-term facilities for our members.
“School is not a business that you will expect an immediate return on investment.
“Because of this, we are still struggling to get financial institutions that can give us loans that can span 10, 15 or even 20 years for repayment,” he said.
Otubela said the appeal became necessary because some schools could not easily break even until after 10 to 15 years of establishment.
He added that it would be difficult for such schools to obtain short term loans of between six months and four years and be able to repay in record time.
Otubela disclosed that the association established a cooperative society to raise capital for members as an interim measure to mitigate their financial needs.
According to him, the cooperative is doing well in Lagos and there are plans to replicate the Lagos experience in other states of the federation.
“We have been able to raise a level of capital in Lagos state from which a lot of our members have benefitted from.
“The loan spans between five to 10 years with just one per cent interest, depending on one’s contributions,” Otubela said.
He said that the association had yet to realise its full potential because it was being run through self help, adding that its financial base was not enough to meet the members’ demand.
He expressed the optimism that the ongoing negotiations with some banks would yield positive result for long term facilities for the association.