The leadership of the Manufacturers Association (MAN), has opened up on what they described as frustrating and near elusive posturing of Nigerian banks on issues of business facilities for manufacturers, saying many banks in the country have not demonstrated enough commitment to financing industrialisation.
This was revealed by the Chairman of Kwara and Kogi states branch of MAN, Alhaji Kamorudeen Yusuf, during the MAN chapter’s seminar entitled; ‘Deriving the full benefits of loan facilities in the banking industry, the dilemma of bottlenecks and bureaucracy’, in Ilorin, weekend.
According to him, though loans were said to be available in banks, they were only available on paper and not in reality for industrialists.
Represented by the Deputy Managing Director, KAM Industries Limited, Mr. Bola Awojobi, at the event, Yusuf averred that manufacturing activities were essential for national growth and development, adding that industrialists must overcome all stumbling blocks against industrialisation.
He said “Hardly can a major manufacturing firm operate without loans. The best financial system is therefore one which ensures that funds are accessible to industrialists by way of soft loans and meetable conditions that do not intend to bleed and kill industries”.
“Loans for running businesses have always been available at virtually all our banking institutions. Unfortunately, however, their availability has been more on paper than in our hands. Several factors have denied us in our efforts to obtain these loans. The most worrisome being the hydra headed bottlenecks and bureaucracy.”
However, in a swift response, the Kwara State Manager, Bank of Industry (BoI), Mr. Olusegun Adekogbe, observed that the lender was desirous and committed to assisting industrialists and micro, small and medium enterprises to grow.
In his submission, he noted that “”the BoI must be convinced of the genuineness and profitability of the business and the ability to repay loans before fund providers could grant credit facilities.
“BoI now handles with dispatch applications for credit facilities and that some credit applicants do not meet the necessary requirements for such loans to be granted,” Adegoke stated.
