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  • NSE, CBAN renew call for access to credit by MSMEs

    By Chikodi Okereocha

    The Nigerian Stock Exchange (NSE) and the Credit Bureau Association of Nigeria (CBAN) have renewed the call for  access to credit facilities by Medium, Small and Micro Enterprises (MSMEs) to unlock their growth and development.

    The Head, Trading Business, NSE, Mr. Jude Chiemeka, while receiving CBAN delegates, led by its Chairman, Mrs. Jameelah Sharieff- Ayedun, at the NSE head office in Lagos, during the week, said MSMEs needed an improved credit reporting to access capital for various projects.

    According to him, the MSME sector is the backbone of major developed economies, as well as an important contributor to employment, economic and export growth. He said MSMEs accounted for over 80 per cent of businesses and more than 70 per cent of employment in Nigeria.

    Read Also: NSE, CBAN renew call for access to credit by MSMEs

    Chiemeka added that, despite the significant contribution of MSMEs to the economy, challenges still persist that hinder their growth and development, as they find it difficult to access credit to expand and grow their business.

    He, however, said the NSE remains fully committed to ensuring that the MSMEs, which he described as the engine room for Nigeria’s economic development, have long term access to finance as it has set in motion a modality to achieve this objective.

    Responding, Mrs. Sharieff-Ayedun, who is the managing director/CEO, Credit Registry, Mrs. Sharieff-Ayedun, said there was need to promote and encourage MSMEs by providing an enabling environment where they can have access to affordable credit.

    This, she said, would add value to the economy, improve the country’s Gross Domestic Product (GDP) and correspondingly contribute to more employment and improved standards of living for Nigerians.

    According to her, Nigeria has witnessed a tremendous improvement on loan repayment by both corporate and individual borrowers, attributing this to the existence of the Credit Reporting Act in the country.

    She added that borrowers needed to be accountable to credit they collected, saying that CBAN has, over the years, engaged in education and enlightenment on responsible borrowing.

    According to her, the Sixth National Credit Reporting Conference, a yearly flagship event of the association, holding tomorrow, would discuss the accessibility of credits by the MSMEs and other issues relating to responsible borrowing.

    The event, which will hold in Lagos, will have Lagos State Governor Mr. Babajide Sanwo-Olu and the Central Bank of Nigeria Governor, Mr. Godwin Emefiele, as Special Guests of Honour.

    Mrs. Sharieff-Ayedun said the conference would discuss the need to evaluatie MSMEs to unlock further growth of the sector.

    She added that such evaluation would assist in attaining a status report on the level of impact of the funding and other support strategies on the target recipients.

    It would also aid in driving policy assessment, redirection and formulation going forward, especially in this economic climate.

    CBAN is an incorporated not-for-profit and non-governmental business management organisation formed to promote a credit reporting culture towards the expansion of Nigeria’s economy through its values.

    Members of the association are the licensed private credit bureaux, including First Central Credit Bureau, CRC Credit Bureau Limited and CR Services Credit Bureau.

    CBAN promotes the use of credit information, access to finance and the success of members and stakeholders through advocacy and capacity building, among others.

  • CBAN chief seeks more credit for small firms

    More than 80 per cent of loans in Nigeria are concentrated in high networth individuals, big commercial entities and specific sectors, particularly the oil and gas sector.

    This is why bad loans or non-performing loans are more in the oil and gas sector, the Credit Bureau Association of Nigeria (CBAN) Chairman, Mr. ‘Tunde Popoola, has said.

    He spoke at a briefing in Lagos at the weekend. He said there was the need to change the model for lending by targeting the estimated 37 million Micro, Small and Medium Scale Enterprises (MSMEs).

    Noting that retail loans remain a viable area for banks to play, he said it was necessary for banks to change their model of lending, which concentrates on commercial entities, high net worth  individuals and big corporate, particularly those in the oil and gas sector, and focus more on MSMEs, which are the engine of growth.

    Popoola noted that if MSMEs were empowered through unhindered access to credit, they would be in a better position to spur more productive activities and, ultimately, create jobs, reduce poverty and engender sustainable economic growth and development.

    The CBAN chair said the total value of loans granted in Nigeria has risen from N7 trillion to N16 trillion by last December, adding that there had been a significant decline in the rate of non-performing loans.

    He, however, reiterated that the majority of the non-performing loans were in the oil and gas sector, partly because of the crash in oil prices.

    He said the significant decline in the rate of non-performing loans was one of the impacts of Credit Bureaus in Nigeria. “Retail loans are enjoying special attention by virtually all the banks, which has inevitably turned the tide of high level of non-performing loans that was prevalent in the 1980s – 1990s,” he pointed out.

    Popoola also said Nigeria is sixth in the world on the Getting Credit Indicator. “Furthermore, Nigeria  ranks 145th out of 190 countries on the Ease of Doing Business, compared to 169th in last year’s report.

    “This is due to efforts by the Presidential Enabling Business Environment Council (PEBEC) initiatives of which the Credit Bureaus played an integral part last year,” he added.

    The CBAN boss also said credit bureaux have helped increase access to credit. According to him, individuals now have greater access to loans based on their good credit history.

    “This is, particularly, important to MSMEs who may not be able to meet the collateral and security demands of banks, but have a good credit history. These MSMEs would still have access to credit based on the strength of their good credit history and it is the credit bureaus that enable this,” Popoola said.

    Licensed in 2008 by the Central Bank of Nigeria (CBN), Credit Bureaux collect and share information about the creditworthiness of individuals and businesses.

    He, however, expressed regrets that while operators in the financial sector have complied with the provisions of the Act, those in the non-financial sector, including the telecom companies and utility providers, were yet to fully embrace the Credit Reporting System.

    “This clearly runs contrary to the provisions of the Act,” he complained, noting that the association intends to target the non-financial sector and other identified stakeholders, especially consumers and SMEs to let them know what the law says on the use of the products/services of credit bureaux and how this could positively impact their sectors in the long run.

  • CBAN improves access to credit

    The Central Bank of Nigeria (CBN) and International Finance Corporation (IFC) have praised the Credit Bureau Association of Nigeria (CBAN) for their contribution towards improving access to finance in the country.

    This was disclosed at the third National Credit Reporting Conference organised by CBAN on Wednesday in Lagos.

    Speaking at the event, CBN Governor, Godwin Emefiele, who was represented by CBN Branch Controller, Lagos, James Omebere Tyari, said the success of credit reporting underpins the stability and economic development of Nigeria has the dangers of Non-Performing Loans (NPL) are a major threat to the stability of our financial system.

    “The quantum leap in data captured by private credit bureau operators has contributed in no small way to the successes recorded in improving the financial environment and access to credit, which has improved the standard of living of Nigerians.”

    IFC Lead Financial Sector Specialist, Mrs. Luz Maria Salamina, who was represented at the event by Ubong Awah stated that a well-developed credit infrastructure is critical to ending poverty and promoting shared prosperity.

    CBAN Chairman and MD/CEO of Credit Registry Services, Mrs. Jameelah Sharrieff-Ayedun expressed optimism that the contribution of the credit bureau segment of the financial services sector will have immense impact on the growth of the economy. She said: “I strongly believe we will consolidate on past successes, enhance the promotion of regulations and policies that will improve access to credit, deepen our strategic business ties and grow the credit bureau segment, financial services sector and Nigeria will get better for it.

  • CBN, IFC, CBAN to host conference

    The Credit Bureau Association of Nigeria (CBAN) will be hosting its third National Credit Reporting Conference with the theme: “Credit bureaux and access to finance: Nigeria’s success story” on Wednesday.

    Chairman of the association, Mrs. Jameelah Sharrieff-Ayedun, said this year’s conference coincides with the 25th anniversary of credit reporting in Nigeria and it’s the third edition of the national conference series.

    The Credit Bureau Association of Nigeria was established to promote the use of credit reporting in Nigeria, access to finance, execution of policies favorable to the health of the financial system and to promote the interests of credit bureaux.

    According to Mrs. Sharrieff-Ayedun, the gathering provides the opportunity to evaluate the successes recorded over the 25-year period and achievements of credit reporting in Nigeria. Credit Bureaux have been stimulating economic growth through the provision of critical risk management and fraud prevention services to the financial services sector, and the promotion of regulations and policies that have generally improved access to finance for households and the real sector of the economy.

    Central Bank of Nigeria (CBN) Director, Banking Supervision, Mrs. Tokunbo Martins, who will be speaking on an analysis of the guidelines on licensing and operations of credit bureaux: its relevance to the Nigerian financial sector, said the conference is expected to bring industry leaders together to forge a common front towards financial system stability through adequate monitoring and improved access to finance.

     

     

  • ‘Abuja Exchange privatisation ready in 12 months’

    ‘Abuja Exchange privatisation ready in 12 months’

    The privatisation of the Abuja Securities and Commodities Exchange (ASCE) will be concluded within the next 12 months, the Managing Director, ASCE, Mr. Yusuf Abdurraman, has said.

    Abdurraman disclosed this during the inauguration of 186 new members of Commodity Brokers Association of Nigeria(CBAN),in Abuja. He said the Federal Government, through the National Council on Privatisation had already given approval for the Exchange to be privatized.

    He said the exercise, when fully completed, would result in more earnings for private sectors and farmers. It will also improve the quality of the country’s non-oil exports.

    He said: “The Federal Government through the National Council on Privatisation has already given approval for the ASCE to be privatised . This will be achieved within the next 12 months and the Exchange will be up and running at that time.

    “The implication is that we are going to have an organised market where you can trade non-oil commodities .This will ensure good pricing for the farmers and also quality produce from agro-processors and major manufacturers.

    “In addition, the country’s export quality will be greatly enhanced. This will equally translate to more earnings for the farmers that dominate the economy and more earnings to those who add value to agricultural produce along the agricultural value chain”.

    Adulrraman, assured that the privatization process would be transparent in line with global best practice.

    The President , Commodity Brokers’ Association of Nigeria (CBAN), Hon. Altine Shehu Kajiji, said CBAN would create a Commodity Investment Fund to help brokers raise enough capital buy agro commodities from farmers.

  • ‘Piracy killing publishing’

    ONE of the problems of the books industry is piracy, the President, Christian Books Association Nigeria (CBAN), Mrs Modupe Ehirim, has said.

    She spoke at this year’s national convention/fair of the group in Lagos.

    She said because of the problem, there are more pirated books in the market, adding that given their cheap prices and the economic downtourn in the country, some people prefer them to the original ones.

    Praising the National Copyright Commission (NCC) on its battle against piracy, she said more efforts by the law enforcement agency and other sister agencies would help to nip the problem.

    Mrs Ehirim urged the government to prosecute the cases of arrested books’ pirates, adding that arrests and seizures of their books were not enough to deter suspects and others from the illegal trade.

    She called for more enlightenment on the evils of piracy to the economy, saying that more people should be urged to desist from buying pirated books.

    On the fair, she said it was aimed at making available good books and creating awareness for the industry. Assessing its impact in the last 10 years, she said the turnout of people at the fair had been impressive. “Last year’s fair in Port Harcourt was well attended. Beside books, we also feature music and other church materials in our fairs. As Christians, we do not sell what is fake. We only sell good materials,” she said.

    She also called on the government to assist CBAN’s members by repairing roads and providing other social amenities, which she said, were hampering the distribution of books, adding that the wear and tear of the roads was adding to the cost of distribution and making business difficult. “My bookshop is not in Lagos. Because of bad roads, it takes some time to distribute to some customers,” she said.

    On Nigerians reading culture, she said: “It is poor. The environment does not encourage reading. In those, the British Council Library was very conducive for reading for us. Now there are no such public libraries or where they exist, they are not enough. But this is changing. Adults are beginning to appreciate the importance of reading. It is the same thing with the youth. In our bookshop, we had invited youths for an excursion. She commended President Goodluck Jonathan for encouraging reading culture through the Bring Back Book project,” adding that the programme should be sustained.

    She urged Nigerians to read, saying that reading enables people not only to know about themselves but also about others abroad and how they solve their problems.