The Nation Newspaper

Tag: LOAN

  • CBN bans dud cheque issuers from clearing, loan access

    CBN bans dud cheque issuers from clearing, loan access

    The Central Bank of Nigeria (CBN) yesterday mandated commercial banks to ban any of their customers that issues dud cheques from use of the clearing system for a period of five years.

    CBN Director, Banking Supervision,  Mrs. Tokunbo Martins who disclosed this in a circular, said the banks are to also ban the serial issuers of dud cheques from accessing credit facilities from the banking system for a period of five years.

    She noted with great concern the impunity with which some customers of banks issue dud cheques on their accounts despite the provisions of the Dishonoured (Dud) Cheques Act of 1977 and its recent directives to banks’ customers to desist from such practice.

    She said the names of the offenders should be forwarded to the three Private Credit Bureaux and the Credit Risk Management System (CRMS) adding that no institution shall, except with the prior written approval of the CBN, remove such a person’s name from the three Credit Bureaux and the CRMS.

    Martins said the customers’ names would be listed on the database of the private credit bureaux and CRMS for a period of five years from the date of submission, after which offenders will be eligible for removal.

    However, if the offender is found wanting after the name is removed, such an offender shall be permanently reinstated in the data base of both the three Credit Bureaux and the CRMS.

    The CBN director said that where an Institution fails to report a serial dud cheque issuer in its return to the CBN CRMS and Private Credit Bureaux as required, it shall be considered as concealment and misrepresentation of material fact and the affected institution shall be penalized in accordance with the relevant provisions of the Banks and Other Financial Institutions Act, LFN 2004 CAP B3 (BOFIA).

    Martins said that to sustain the positive achievements already recorded in the Nigerian Payment System, it is essential that confidence and integrity in negotiable instruments, especially cheques, should be restored and enhanced.

    “Consequently, it has therefore become imperative for the CBN to implement further measures to dissuade the issuance of dud cheques to the barest minimum. The CBN has put in place additional regulatory measures against dud cheque issuers. Upon CBN’s compilation and dissemination of information on serial issuers of dud cheques based on bank’ returns, banks would be required to Recall/cancel all unused cheque books issued to serial issuers of dud cheques,” she said.

  • Fed Govt seeks $2b W/Bank, AfDB loan

    Fed Govt seeks $2b W/Bank, AfDB loan

    A few days to a crucial national election and crippling low oil revenue, the Federal Government has gone to borrow $2 billion from the World Bank and the African Development Bank (AfDB) so it can implement its policies and programmes this year.

    The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, said the facility was part of the approved 2012-2015 External Borrowing Plan and being a concessionary loan, she said the facility would pose no  burden on the nation.

    The minister who spoke during   an interactive session with reporters in Abuja, yesterday,  also said the  government was working to strengthen the nation’s currency, among others.

    She said: “We have entered negotiations with international financial institutions, specifically, the African Development Bank and World Bank. You know they have some resources for us already programmed, which is in the Borrowing Plan. We have asked them to turn these resources into budget support for us. We are negotiating for $2 billion that will come in foreign exchange. “The terms of this loan from the AfDB are quite reasonable (between three and four per cent) compared to what you can get outside, and this is money that they had committed and set aside for us. “So we have decided to draw on it and use it in the form of budget support to come in form of foreign exchange.

    “Government will get the naira equivalent given to us by the Central Bank.  It will come in two tranches. It will bring in the needed foreign exchange that will help our private sector people to have access.

    “So, it will alleviate the situation. It’s something that we are working on. We are communicating day and night with them. We have to address the needs of manufacturers and others. That is one more thing we are doing and I hope that will help to ameliorate the situation.”

    The CBN governor had on on Tuesday, said the nation’s foreign reserve now stands at about $30 billion in an economy that is partially dollarised, coupled with high dollar demand and low foreign exchange inflow.

    As a first step to check the economic slide, the minister of finance appealed to Nigerians to reduce their appetite for imported goods and patronise made-in-Nigeria products so as to conserve available reserves for more productive uses.

  • BoI disburses N123m loan for aquaculture development in Ogun

    BoI disburses N123m loan for aquaculture development in Ogun

    The Bank of Industry has disclosed that its loan portfolio to aquaculture cooperative societies and enterprises in Ogun State has hit N123 million.

    According to the bank, the facility was accessed at a single digit interest rate of seven per cent per annum under the matching fund arrangement that saw the Ogun State Government and the bank creating a pool of N1.0 billion for on-lending to MSMEs in the state.

    In a statement made available by the bank, the bank explained that in pursuance of its mandate of transforming the Industrial sector of Nigeria, evolved the Matching Fund concept in partnership with various State Governments, in order to provide access to finance for Micro, Small and Medium Enterprises (MSMEs) in the states.

    “The Matching Fund Scheme entails the State Governments providing funds that are matched equally by BOI, in order to increase the quantum of funds available to MSMEs in the states in support of their economic activities geared towards job and wealth creation.

    “Ogun State is one of the 17 states currently collaborating with BOI in the Matching Fund arrangement. The Ogun State Government contributed the sum of N500million which was matched by BOI to create a pool of N1.0 billion for on-lending to MSMEs in Ogun State at a single digit interest rate of 7 per cent per annum.

    “The Matching Fund has been deployed towards funding entrepreneurs engaged in aquaculture, livestock and fish feed milling, cassava flour, garri, bakery, water bottling, textiles (batik/tie and dye), polyethylene products, block making among others,” it added.

    Under the arrangement, the bank stated that a total of N123 million has so far been disbursed to 21 aquaculture cooperative societies and enterprises engaged in the production of cat fish in eight Local Government Areas of Ogun State namely: Abeokuta South, Yewa North, Ijebu North, Ijebu South, Sagamu, Odogbolu, Abigi and Ijebu-Ode.

    It explained that the 21 cooperative societies and enterprises however currently produce 1,890 tonnes of fish, which only meets 2.4 per cent of the estimated demand of 79,000 tonnes of fish per annum in Ogun State, reflecting an indication of the great opportunity that exists for investment in aquaculture in the State, as well as for value addition activities in fish processing for production of smoked fish, fillets, among others.

    The Managing Director/Chief Executive of the Bank of Industry, Rasheed Olaoluwa, in assessing the aquaculture development programme, declared that “I am indeed very happy that BoI is creating such a remarkable economic impact in Ogun State, which is evident in the almost 2,000 jobs (500 direct and 1,500 indirect) created under the programme, coupled with the linkages established between the fish farms and off-takers such as restaurants, hotels, food processing companies, as well as with suppliers of fish feeds and other inputs.”

    On his part, the Ogun State Commissioner for Commerce and Industry, Bimbola Ashiru said: “it was the widely acknowledged importance of fish as a rich source of dietary protein that prompted the Ogun State Government to collaborate with the Bank of Industry in promoting aquaculture in the State under the Matching Fund Scheme.”

  • Kaduna farmers to benefit from N1b loan

    Kaduna farmers to benefit from N1b loan

    A total of 500 farmers in Kaduna State would benefit from N1 billion loan facility being provided by the Bank of Agriculture (BoA) in partnership with the state government.

    Of the amount, N500 million was provided by the state government while BoA provided the balance.

    Kaduna State Governor,  Mukhtar Yero  inaugurated the committee that would disburse the loan in Kaduna.

    According to him, the loan facility will go a long way to finance massive agricultural produce and agro allied businesses in the state.  The governor said it was also a conscious effort by the government to generate revenue from agriculture in view of dwindling earnings from oil.

    Yero said the loan had an interest of five per cent, adding that it would be made available to qualified beneficiaries without delay.

    He pledged that the government would increase its investment in necessary technology to drive the agricultural sector to greater heights

    According to him, 10 cooperative groups from each of the 23 local government areas would benefit from the loan.

    He also said 92 small scale farmers, 69 medium scale and 46 large scale farmers had also been screened and cleared to benefit from the facility.

    Yero warned that the loan was not largesse to political cronies but an intervention to genuine farmers, adding that the farmers must repay the loan.

    He told the beneficiaries that the Bank and the state Ministry for Agriculture would monitor the utilisation of the loan and ensure the recoveries at the appropriate time.

    The Managing Director of the bank, Mr Babatunde Sadiku, said the collaboration with the state government started six months ago.

    He said it was meant to harness the huge agricultural potential in the state and create jobs and wealth for the people.

    Sadiku said the facility was expected to support the production of rice, maize, wheat, ginger, tomato, onion and livestock.

  • Access Bank grants $250m loan to Sea Truck

    Access Bank grants $250m loan to Sea Truck

    Access Bank Plc has granted a $250 million credit facility to Sea Truck Group an international group of companies offering offshore installation, accommodation and support services to the oil and gas industry worldwide, in continuation of its financial intermediation role,

    In a statement, the Group Managing Director, Access Bank Plc, Herbert Wigwe, said the lender has recorded commendable expansion and growth in the last decade.

    The feat, he said, has positioned the bank within the top five banks in the country. “With regards to our regional spread, Access Bank is currently in seven countries inclusive of the United Kingdom and now has an office in China with plans to establish presence in Dubai next year,” he said.

    The bank chief described the Sea Truck Group as a company that is dear to the lender’s heart. “We will always support the company in its dealings, as we are confident that this mutually beneficial relationship will provide the backbone for future more robust dealings,” he said.

    President/Chief Executive Officer, Sea Trucks Group, Jacque Roomans praised the bank chief for arranging the signing ceremony and also commended the lender for the successful close on the transaction.

    “The manner with which Access Bank handled this transaction is highly commendable. This is a demonstration of how far the bank has come overtime. Sea Truck Group is proud to associate with Access bank and will not hesitate to build on this existing relationship. I admonish other financial institutions to emulate Access Bank,” he said.

    The Executive Director, Corporate and Investment Banking, Access Bank Plc, Elias Igbinakenzua in said the bank’s capacity to support big businesses is never in doubt. “In our bid to stimulate growth in the economy, we have established first class relationships with corporations and multi – nationals to position us to better support our customer’s businesses,” he said.

  • Unsecured loan, missing CEO add red flags to China lending

    omura Holdings and co-lenders spent nine months poring over the books, sizing up management and even checking out the factory floor at China’s Ultrasonic AG before deciding in August to give the Frankfurt-listed shoemaker a $60 million unsecured credit facility.

    The loan was unsecured in keeping with regulations in China at the time it was structured. Nomura, a Japanese bank, and its partner banks, however, felt they had done their homework.

    But within weeks, the three-year loan had been drawn down in full and two of Ultrasonic’s top executives had disappeared – leaving the lenders in a situation that should ring alarm bells for foreign bankers exposed to China.

    “You couldn’t get onshore security for offshore loans,” said a person involved in the loan negotiations. “It was a common risk in offshore borrowing for Chinese companies.”

    The affair is a reminder for offshore banks of the risk of lending to small and mid-sized Chinese firms which have long struggled to access credit. Local banks are more inclined to lend to larger, more established companies as economic growth slows, forcing smaller firms to seek expensive loans in the less-regulated shadow banking industry or from offshore lenders.

    Asia-Pacific banks had about $1.2 trillion worth of China-related exposure at the end of last year, including bank and non-bank lending, latest Fitch Ratings data show.

    “These mid-sized companies are getting hit the hardest by the slight slowdown in the economy, and that’s having an impact on how they view the future …,” said Kent Kedl, Shanghai-based managing director for Greater China and North Asia at consultancy Control Risks.

    “This isn’t to say that mid-sized companies have any more innately corrupt people in them than do large companies, but large companies can weather storms a little easier.”

    China’s economy grew 7.5 percent in April-June, a touch quicker than the previous quarter’s 7.4 percent – the slowest since the third quarter of 2012.

    Ultrasonic on Tuesday said CEO Wu Qingyong and his son, Chief Operating Officer Wu Minghong, had been missing since the weekend, and most of the company’s cash reserves in China and Hong Kong had vanished. On Thursday, the company said the pair had withdrawn the cash in two tranches.

    Just five weeks earlier, the CEO and Ultrasonic’s listed holding company had guaranteed the loan, extended by Nomura’s Hong Kong unit after extensive checks on the company and its customers, people involved in the loan talks told Reuters.

    CEO Wu was well known in Jinjiang City in the southeastern province of Fujian, where the company’s factory was located. He received an award from the provincial government last year in recognition of his contribution to the development of the Western Taiwan Straits Economic Zone, according to a government website.

     

  • Kogi farmers get N750m loan

    About 3,800 farmers in Kogi State have benefited from a N750 million loan jointly facilitated by the Bank of Agriculture (BoA) and the state government.

    Disbursing the loan yesterday, Governor Idris Wada urged the beneficiaries, who cut across 21 local government areas, to repay the loan promptly so that others can benefit from it.

    He said: “Agriculture used to be the main stay of the nation’s economy. With the credit facility and farmers’ commitment, in the near future, agriculture can again become the main stay of our economy.”

    Commissioner for Agriculture Zacchaeus Oluwagbotemi said his ministry would monitor the beneficiaries to ensure that the loans are used for the purpose they are meant for.

    BoA Managing Director/Chief Executive Officer Babatunde Sediq said the bank has disbursed N1.3 million to farmers, adding: “Loan below N250 million are given without traditional collateral but with guarantee by the cooperative societies. This was done to assist peasant farmers, who have the intention to grow their farm business but lack the capital for expansion.”

     

  • NDE, BoA sign loans’pact

    NDE, BoA sign loans’pact

    The National Directorate of Employment (NDE) has signed a Memorandum of Understanding (MoU) with the Bank of Agriculture (BoA) to assist NDE trainees with loans.

    The Coordinator of NDE in Kano State, Alhaji Aliyu Abubakar, made this known at the opening of a training for 50 women in modern bag-making and footwear production in Kano.

    He said under the deal, the directorate would identify viable business proposals from the beneficiaries for  funding. He urged them to open accounts with the bank to get loans.

    The coordinator advised the women trainees to form cooperative societies to enable them to tap from the advantages of networking.

    Abubakar said the decision to train the women was to provide them with skills to enable them set up their own businesses.

    He said after the training, the trainees would be given a start-up capital to enable them to start their own businesses.

    “Unemployment among women can have highly devastating effects owing to their vulnerability. In addition, the Universal Declaration on Equal Opportunities and Gender Sensitivity has become household principle. We have been championing the cause of women by ensuring their full participation in economic activities for self-reliance,” he said.

    The Commissioner for Women Affairs, Dr. Binta Jibril, praised the directorate for tackling unemployment among women and youths.

    Jibril, represented by the Director Women Affairs, Hajiya Hajara Shehu, said the government was ready to partner with the directorate to reduce unemployment in the state.

    The training, which commenced last week, will last 21 days.

  • Solomon makes loan move to NK Zadar

    Solomon makes loan move to NK Zadar

    Nigeria youngster Theophilus Solomon has left Croatia outfit HNK Rijeka on a season long loan deal to top division side NK Zadar.

    Solomon endured a torrid loan spell at Croatia second division side Promorac, where he scored just once in 11 games as he was constantly played out of position.

    The 18-year-old returned to Rijeka this summer and picked up the most valuable player plus top-scorer award at the 62nd edition of the International Kvarner Riviera Cup with the club youth team.

    Tipped for a breakthrough into Rijeka’s main team for their Europa and domestic campaigns, the teenager was surprisingly left with the youth team all through pre season. However, his recent goal rush for the youth team in their pre-season games where he scored seven times in five games didn’t go unnoticed especially his brace against Dinamo Zagreb.

    NK Zadar, who finished seventh last season in the Croatian league, made the swoop for him to solve their goal scoring problems.

    The fast paced striker nicknamed “Nigeria Ronaldo” will join up with his new teammates on Monday and might make his debut against his parent owners Rijeka in 10 days time.

    Despite the option of a recall in his loan agreement the Nigerian, former Golden Eaglet and Flying Eagles invitee has no clause in his loan deal barring him from facing his former team. Three years ago, prior to joining Rijeka, his proposed move to Juventus was truncated over ownership tussle.

    He also famously snubbed a pre-contract from Serie A side Catania in January to sign a two-year professional contract with Rijeka citing lack of transparency in the deal.

  • Moses to join Stoke City on loan

    Moses to join Stoke City on loan

    • Undergoes medical 

    Super Eagles midfielder Victor Moses is set to join Stoke City on a season-long loan deal.

    Reports coming out of England late Friday night has it that Stoke City are poised to sign the Nigerian international pending a succesful medical.

    SportingLife can report that the former Wigan star will undergo a medical at Stoke’s Clayton Wood training ground this morning to complete the formalities of his move to Britannia Stadium but won’t be available for today’s game against Aston Villa.

    The 23 year-old star, who will be Stoke’s sixth summer signing, has fallen down the pecking order at Chelsea since Jose Mourinho returned last summer.

    Moses spent last season on loan at Liverpool when he started six Premier League games and featured in 13 from the bench, scoring his only goal on his debut against Swansea.

    Moses, who was handed Chelsea number No 18 shirt on Friday in the Blues jersey shake-up and  made his first appearance for the Blues as a substitute in their 2-1 victory over Hungarian side Ferencvaros in one of the team’s pre-season matches, raising the hope of getting the chance to fight for a shirt under Mourinho.

    But with the latest development, it seems Moses will play his football at the Potters on loan this season.

    Having first made his name at Crystal Palace, Moses switched to Wigan for over £2m in 2010.

    He impressive  enough there to earn a £9m move to Chelsea in the summer of 2012 but has since struggled to make an impact at Stamford Bridge.

    Born in Nigeria, he chose to represent England at various youth levels up to the under-21s before deciding to play for the country of his birth in senior internationals.

    Stoke boss Mark Hughes has spent all summer trying to sign a winger and Assaidi was his preferred choice after the 25 year-old Moroccan impressed on loan last season.

    But Assaidi’s wage demands became an impediment to a permanent deal in this transfer window.

    And when Norwich held out for a transfer fee of more than £6m for Redmond, that left Hughes turning to Moses to secure that natural width he wants.