Tag: LOAN

  • ‘Granting farmers loans’ll reduce poverty, unemployment’

    The ‘Egbe Agbe Onigari, Akinle-Ijebu’ has called on the Federal and state governments to reduce poverty and the high rate of unemployment in the country by assisting cassava farmers with soft loans.

    The group said cassava is now a “golden crop,” adding that promoting agriculture could solve the challenge of hunger, poverty, increased social vices and unemployment ravaging the country.

    Speaking at the bi-Annual General Meeting of the association in Ago-Iwoye, Ogun State, its Chairman, Chief Baderin Parakoyi, said a critical analysis of the economic situation of the country revealed the need for diversification from oil to agriculture.

    The meeting, which has as theme: ‘Way out of the food and unemployment crises in Nigeria,’ was addressed by the Chairman of the Adenle Farms, Alhaji Wasiu Adenle.

    The major reason the government relied on oil money, the University of Lagos graduate turned cassava farmer, said, was the criminal neglect of the agric sector by successive administrations.

    “Cassava is now a ‘golden crop’ across the world, where over 2,000 different products can be extracted. Nigeria is currently the largest producer of cassava in the world with annual production of over 34 million metric tonnes. Yet, there is glut in cassava production in the country mainly because of the absence of adequate processing of the crop into many products,” he said.

    Assisting the farmers, he said, would encourage them to cultivate more, hence there will be increased farm activities, while hunger, poverty and unemployment would be reduced.

    However, Adenle identified paucity of funds and implements as the major problems confronting the farmers.

    He said they were interested in supplying several tonnes of cassava to many of the agro-allied industries in the country, such as Dangote Group, Flour Mills of Nigeria Limited and Okin Biscuits, which they could not do because of insufficient funds.

    At the meeting, the association released a 12-point communiqué on the way forward to boost food production in the country.

    These are: There is an urgent need for inter-agency interaction for expedited information flows, facilitated and desirable synergies; private sector and other stakeholders should build co-operative linkages with farmers to catalyse a paradigm shift built on greater productivity; entrepreneurship and technology infusion into the nation’s farms; government should streamline taxes to encourage agric enterprises through incentives; and the government, in partnership with the private sector should also provide adequate training for farmers to ensure international best practice.

    Others were that CBOS, NGOs and co-operative societies should be used to mobilise and direct agriculture since they are based at the grassroots; government should lease out storage facilities like silos, scattered over the country to farmers on group basis; government should create a fund to finance long gestation agricultural projects and managed through private sector involvement; both the federal, state and local governments must increase budgetary allocation to agriculture by at least 10 per cent initially and 20 per cent subsequently; agricultural loans must be kept at single dignity through strengthening agricultural credit guarantee schemes including incorporating appropriate incentives; priority attention must be given to the provision and rehabilitation of basic infrastructure most especially water, road and power to promote agricultural growth; and that federal, state and local governments must explore investment opportunities in agriculture; and that only politicians with good agricultural policies should be elected.

     

  • Delta empowers over 3,000 farmers with N600m loan

    Delta empowers over 3,000 farmers with N600m loan

    Delta State Government has empowered 3,921 farmers across the state with N600 million loan through its Farmers’ Support Programme in the last four years.‘

    Gov.Emmanuel Uduaghan made this known in Asaba at a four-day workshop on Bankable Proposals for Loan Facility Requirement and Repayment for Enterprise Development’ in Delta.

    Uduaghan, who was represented by Mr Valentine Okwuchi, the Permanent Secretary, Ministry of Commerce and Industry, said the workshop was aimed at assisting farmers expand their farms.

    He said that soft loans were given to farmers as well as farm inputs to improve their yields.

    The governor also said that 950 youths across the state benefitted from the youth empowerment through Agriculture and Farmers’Support Programme.

    He said that the empowerment programme had created jobs for youths in poultry production, fishery, piggery and snailery.

    Uduaghan said the government was committed to harnessing the abundance and energies of youths in the state.

    While commending the Delta Association of Chambers of Commerce, Industry, Mines and Agriculture (DACCIMA) for organising the workshop, the governor urged investors to take advantage of the abundance of natural resources in the state.

    He said besides the various windows designed by the private sector to grow businesses, the government, through various investment-friendly policies and programmes, was poised to make the state an “industrial and commercial haven of the nation.’’

    In his speech at the occasion, the President of DACCIMA, Chief Uju Udeme, said that the workshop would equip owners of projects with the techniques of presenting project proposals to potential sources of finance by proving the viability of such projects.

    He said the workshop would also equip the participants with management skills that would enhance their capacity and prevent default.

  • Wema Bank to deploy N40b capital in loan expansion

    Wema Bank to deploy N40b capital in loan expansion

    Wema Bank Plc has said the N40 billion capital raised from shareholders will be channelled into growing its loan volume by over 60 per cent in the next few years.

    Its Chief Financial Officer (CFO), Tunde Mabawonku, said in an interview at the weekend that the lender is committed to growing its loan volume from N89 billion to between N150 billion and N160 billion over the next few years.

    He said managemnt is aware that the expectations of shareholders are extremely high, adding that management is committed to ensuring that such expectations are met. He disclosed that over 90 per cent of the new fund will be used as working capital.

    “We are not spending any money in terms of infrastructure or strengthening of Information Technology (IT) base because they are already in place. As we have got this money now, it will be strictly used for business. And in terms of business plan, our primary market simply remains the Southwest, South-south and the Federal Capital Teritory,” he said.

    He said last year was a challenging one for the lender as it was hampered by lack of capital and adverse effects of loan provisioning. “Those two factors affected our operations in 2012, we had very low capital and were unable to do as much business as we had wanted to,” he said.

    He explained that while that lasted, lending was slowed, but deposit mobilisation continued, adding that with the restrictions lifted, the lender is now on a path of growth.

    Mabawonku said while waiting for the new capital, the bank continued its aggressive deposit drive especially at the retail segment of the market. “Our idea is to go out and open as many accounts as possible and increase our deposit base,” he said.

    According to him, the bank has been able to clean up its loan book with its non-performing loans (NPLs) currently standing at three per cent from NPLs as high as 89 per cent three years ago. “We started pushing the NPLs down gradually, most importantly by putting in place proper structures of risk management. We are also interested in recoveries, but more so in good corporate governance. So, in 2010, we moved from 89 per cent to 56 per cent, to 18 per cent, 14 per cent and three per cent. And we believe we will not go above the three per cent mark in the nearest future,” he assured.

    He said the bank has strengthened its retail structure and workforce within the segment, adding that a customer could now walk into any branch of the bank and get loan approval within 24 hours.

    However, within such period, all the necessary credit checks on the account including the customer’s past loan history and credit rating will be analysed.

    The bank’s cost of funds, Mabawonku said is also impressive. “Our cost of funds in 2012 was 5.6 per cent and at the third quarter, it was 5.8 per cent. We believe that one of the ways to make profit is to reduce the cost of funds. We did not go into taking expensive funds, what we are doing is step by step retail growth,” he said.

    He reiterated the bank’s commitment to ensuring that its public sector deposit does not exceed 10 per cent of its deposit liability. “After the Central Bank of Nigeria (CBN) policy on public sector funds became effective, we began re-pricing our public sector funds. It hurts us that we lost some funds, but it is better to remain profitable than to be big and unprofitable. We intend to keep our public sector deposits below 10 per cent of our total liability,” he said.

    The CFO said the bank’s first priority remains providing superior returns to its shareholders, adding that in the last few years, the bank has been quiet, carrying out some internal restructuring on its processes, people and technology.

    He said the bank is not applying for national banking licence to operate in all parts of the country but in strategic areas, such as Kano, Kogi, Aba, Port Harcourt where its high-volume customers operate.

  • Utomi denies taking loan from Bank PHB

    Utomi denies taking loan from Bank PHB

    Renowned political economist, Prof. Pat Utomi, yesterday told a Lagos High Court, Ikeja he did not obtain any loan from the defunct Bank PHB to fund his presidential campaign between 2006 and 2007.

    Utomi, who contested the 2007 presidential election on the platform of the African Democratic Party (ADP), told the court presided over by Justice Lateefat Okunnu that he spent about N30 million on the campaign.

    He made the clarification when being cross-examined by the counsel to the Economic and Financial Crimes Commission (EFCC), Mr. Kemi Pinheiro, in a matter brought against the bank’s former Managing Director, Mr. Francis Atuche.

    He said his presidential campaign did not gulp N2 billion as alleged by the prosecutor, Mr. Pinheiro.

    Pinheiro alleged that Utomi’s campaign was funded by the bank when cross-examining him as the defence witness.

    The EFCC sued Atuche, his wife, Elizabeth and the bank’s former chief operating officer, Ugo Anyanwu, for alleged theft of the bank’s N27.5 billion.

    Counsel to the EFCC Mr. Pinheiro alleged that the bank advanced a N2 billion credit facility to Baywood Continental Limited, a company whose board was chaired by Utomi.

    He claimed that the loan was secured from Bank PHB about the same time Utomi was going round the country soliciting votes from Nigerians for his presidential ambition.

    But Utomi, a former chairman of Bank PHB Corporate Governance Committee, denied the allegation, saying Baywood Continental never collected any loan from the bank.

    He said the company was only indebted to Spring Bank Plc long before he became the chairman of the company and the eventual acquisition of Spring Bank by Bank PHB.

    According to Utomi, it was public knowledge that he never exceeded N30 million during his campaign.

    He said it would amount to a misconception if the indebtedness of Baywood to Spring Bank Plc, before its acquisition by Bank PHB, could be linked to his presidential campaign.

    The renowned economist also reiterated his earlier views made before the court that Bank PHB was stolen from the owners by the powers that be.

    He said bank loans could be domiciled in neighbour banks pending when they could be expended on the purpose of the credit facility.

  • Ogun Assembly approves N2b loan

    Ogun Assembly approves N2b loan

    The Ogun State House of Assembly yesterday approved Governor Ibikunle Amosun’s proposal to obtain N2 billion real estate development loan from the Federal Mortgage Bank of Nigeria.

    The loan would enable the State Housing Corporation provide affordable housing for the people and improve infrastructure.

    The approval followed a resolution passed to that effect on the floor of the House by the legislators, headed by the Speaker, Suraj Adekumbi.

    The motion for the approval of the loan request was moved by the Chairman, House Committee on Finance and Appropriation, Mr. Olusola Bankole, after an amendment by the Minority Leader, Mr. Job Akintan and seconded by Mr. Babatunde Edunjobi.

    Bankole said the loan would be used to upgrade infrastructure in existing housing estates, adding that this would improve the standard of living and boost the morale of workers.

    Mr. Adeyinka Mafe, Olusola Sonuga, Olakunle Oluomo and Babatunde Edunjobi said the loan would give civil servants, who are contributors to the housing scheme, an opportunity to own houses.

    They said the passage of the resolution was one of the 13 conditions to be met, adding that Ogun would be among the states to get the loan.

    With the approval, the government can now obtain the N2 billion loan to provide low cost housing and the issuance of an Irrevocable Standing Payment Order (ISPO) by the Accountant-General of the Federation in favour of the Federal Mortgage Bank of Nigeria.

     

  • Osun to benefit from World Bank’s $300m loan

    Osun State is among the four states that will benefit from the World Bank’s $300 million poverty reduction loan.

    In a statement, the Commissioner for Information and Strategy, Mr. Sunday Akere, said the state was the first to be selected for the first phase of the project, tagged: Youth Employment and Social Support Operation (YESSO).

    He said the programme was aimed at providing short term employment opportunities, especially for unskilled/semi-skilled youths .

    Akere said the World Bank is collaborating with state governments to provide jobs for the poor and vulnerable members of the society.

    He said youths would be trained in skill acquisition.

    Akere said the Osun Youth Empowerment Scheme (OYES), an initiative of the Governor Rauf Aregbesola administration, qualified the state for the fund.

    He said: “It is a jointly funded operation, in which the World Bank’s contribution will be through a loan with 40 years tenure and an interest rate of three per cent.

    “The operation disposes the need for beneficiary states to engage middlemen, consultants or brokers.”

  • BoA, Sokoto provide N1b agric loan

    BoA, Sokoto provide N1b agric loan

    The Bank of Agriculture (BoA) and the Sokoto State government have provided N1.15 billion loans to farmers in the 23 local government areas in the state.

    The scheme is being operated under a memorandum of understanding (MoU) signed between the state government and BOA.

    Through the agreement, the government provided N650 million while the bank provided N500 million.

    The Managing Director of BOA, Dr. Mohammed Santuraki, said the loans were given to  small  farmers, who account for 90 per cent of farmers in the state.

    He said the farmers can only operate well when given the necessary support.

    He decried the massive importation of food into Nigeria, despite  the vast  fertile land in the country.

    “So we are happy with this collaboration and this event has become a reality today barely five weeks after the signing of the MoU with the state government,” Santuraki added.

    The Governor, Alhaji Aliyu Wammako, said each of the 23 local governments was given N50 million, adding that  the gesture would only be extended to genuine farmers. Wammako said it is revolving scheme, aimed at encouraging farmers to produce more.

    He said the bank would  provide technical assistance to the beneficiaries of the loans in form of extension services for growth.

     

  • Ogun Assembly okays N16.6b loan for capital projects

    The Ogun State House of Assembly yesterday gave Governor Ibikunle Amosun permission to take a N15 billion loan from Guarantee Trust Bank (GTB) to finance capital projects.

    It also empowered the governor to obtain N1.6 billion from ECOBANK to pay the Universal Basic Education Commission (UBEC) counterpart fund.

    A few days ago, Amosun sought the Assembly’s approval to obtain the loans.

    Yesterday, the Majority Leader, Israel Jolaoso, who moved the motion supporting the request, said the Assembly had met with the Ministry of Finance on the modalities for repayment.

    The lawmakers agreed that the projects for which the loans are being sought would improve the state.

    Also yesterday, the Assembly summoned the Commissioner of Police, Ikemefuna Okoye, to appear before it by April 12 in respect of the students’ unrest at the Tai- Solarin College of Education (TASCE), Omu, Ijebu – Ode.

    Also summoned were the Omu Divisional Police Officer; the Area Commander of Ijebu Area Command; the Commissioner for Education, Mr Segun Odubela; TASCE Provost and the representative of the Student Union Government.

    They were summoned following a motion moved by the Chairman of the House Committee on Education, Mr. Adeyinka Mafe.

    Mafe, who represents Sagamu 1, said over 190 students of the institution were allegedly arrested by the police and four killed.

    He said it was important to find out who authorised the police to fire live bullets at defenceless students.

  • Loan for Sokoto farmers

    Loan for Sokoto farmers

    Farmers in Sokoto State have been assured of adequate support by the Aliyu Wamakko administration, but only genuine growers will get that support.

    Hon. Mani Maishinku Katami, chairman, Silame Local Government Area of the state said the council will ensure that only practicing dry-season farmers will benefit from the N50 million tripartite agriculture loan by the state government.

    He said the disbursement will be fair and transparent to genuine farmers in order to meet the objective for which it was initiated.

    Speaking to reporters in Sokoto, Alhaji Katami said the council has inaugurated a sub-committee to go round communities and villages with a view to identifying genuine farmers for the disbursement.

    Governor Wamakko inaugurated committees across the 23 councils to facilitate the disbursement of N2 billion agriculture loans to dry-season farmers in the state.

    Wamakko at the inauguration warned against politicing the exercise which is aimed at fast-tracking socio-economic transformation of the state agriculture sector by encouraging dry-season farming.

    The chairman explained that his council will ensure that the loans will be repaid.

    “The essence is aimed at boosting food production and security”, he said.

     

    “It will also provide avenue for job creation and economic empowerment of the people”, he stated.

    According to Katami, all categories of farmers would be adequately noted as the exercise commences.

    Similarly, Katami said the council had earlier provided farmers across villages and communities with hand pumps and funds to sustain them in readiness of the grand disbursement exercise.

  • Osun increases workers’ car loan by 75 per cent

    Osun State Governor Rauf Aregbesola has approved 75 per cent increase in the car refurbishing loan to civil servants.

    In a statement, Commissioner for Finance, Economic Planning and Budget Dr. Wale Bolorunduro said the gesture showed the administration’s commitment to the welfare of workers .

    Bolorunduro said the review is the first since the state was created 22 years ago.

    He said Aregbesola recognises the role of workers in achieving his administration’s goals and would always protect their interests.

    Bolorunduro said the review affects workers from Grade Levels 1 to 17. He said workers initially entitled to N100,000 would now get N170,000 and those on N200,000 are now to get N350,000.

    The commissioner said the loan would be repaid in 60 instalments within five years.

    He urged the workers to reciprocate the gesture by rededicating themselves their work.