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Expert faults new BoI’s loan condition to manufacturers

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Industrial analyst and development economist, Dr. Chijioke Mbanalu has raised strong objection to the new condition introduced by the Bank of Industry (BoI), saying it amounts to the growing number of multiple taxation which manufacturers had been complaining over the year.

The bank, Friday last week released a new condition which stipulates that every applicant for import loan must get certification from the National Agency for Food and Drug Administration and Control (NAFDAC) as prerequisite for approval of loan requests by manufacturers of drugs, pharmaceuticals, food and food products.

The Acting Managing Director of the bank, Mr. Waheed Olagunju, stated this in Lagos during the signing of a Memorandum of Understanding between the bank and NAFDAC.

Dr.Mbanalu queried “what will be the meaning of the new certification if not another form of taxation or another ploy by BoI to cause another government agency to have a cut from a loan a manufacturer had requested to use in running his company”.

“Every manufacturer of drugs, pharmaceuticals, food and food products already had a manufacturing approval and NAFDAC number for all products, so why is the bank and NAFDAC creating confusion just to extort money from manufacturers.

“This is some of the reasons why so many manufacturing firms have relocated from this country. “How can a government be telling manufacturers that it is encouraging us and it is working on perfecting ease of doing business in Nigeria and you are turning around to create very unreasonable tax window because, it is not possible for NAFDAC to give you a certification to get a loan for free; never.

Continuing, Dr.Mbanalu revealed that the development will further reduce the respect Nigerians has for NAFDAC in monitoring production of consumables.

“If the bank and NAFDAC are jointly saying that the partnership is aimed at ensuring that food and drugs produced in the country meet international standards, have we been producing low standard products?

“Again, how can taxing an ailing manufacturer who is struggling with forex ensure that the Small and Medium Enterprises producing these products have the financial support they need when you are going to collect money for the certification?

Details of the new partnership between BoI and NAFDAC showed that those who produce foods must receive NAFDAC certification and endorsement before they can access credit.

Mbanalu argued further that the explanation by Olagunju, the BoI boss that “The importance of this is that if you don’t have a NAFDAC number, you cannot sell your products in the open market; and when you cannot sell, your business model will become defective and your business plan will not materialize,” is clearly baseless because the said certification has just noting to do in that matter because we have been having NAFDAC number on all products.


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