The Nation Newspaper

Tag: LOAN

  • NAFRC appeals for agric loan as 295 military personnel retire

    The Nigerian Armed Forces Resettlement Centre (NAFRC), Oshodi, Lagos has appealed to the Ministry of Defence (MOD) to facilitate loans through the Ministry of Agriculture for retired  military personnel.

    NAFRC’s Commandant Air Vice Marshal Ajibola Jekennu made the plea at the weekend during the retirement of 295 military personnel, who underwent a six months skills acquisition training/rehabilitation to prepare them for life after service.

    According to Jekennu, 80 per cent of the retirees, comprising 270 from the Nigerian Army, 18 from the navy and seven from the Air Force, indicated interest in venturing into agriculture.

    He said: “In line with the current diversification policy of the Federal Government, over 80 per cent of the graduating trainees opted for agriculture.

    “This exposed them to various trends in agriculture and we helped their training by emplacing two green houses within the premises of the centre.

    “The current management is desirous of transforming the centre to a modern training institution that will favourably compete with any of it’s kind anywhere in the world.

    “In this quest, we have enjoyed tremendous support and encouragement from the Minister of Defence, defence committees of the National Assembly and the Permanent Secretary, MOD.”

    To the retirees he said: “Bear in mind that as retired members of the armed forces, the society you are going back to expects much from you.

    “It is important that you uphold the professional ethics you have imbibed over the years by remaining obedient to constituted authority.”

    Commending the Chief of Defence Staff (CDS), Gen. Gabriel Olonisakin, on the plan to review the mandate of NAFRC in synchronisation with modern trends, Jekennu said they had commenced renovation of a 50-room hostel facility ahead of the take off.

    He said: “It is worth noting that at no other time has the centre been given attention in terms of capital projects since inception like it has enjoyed in the last couple of months.”

    In his address, Defence Minister, Mansur Dan-Ali, urged the retirees not to misuse their retirement benefits, adding that they should avoid negative influence from friends and family members.

    The minister, who was represented by the Permanent Secretary, Ambassador Danjuma Sheni said President Muhammadu Buhari was committed to ensuring proper resettlement of ex-service personnel.

    He said: “The Federal Government is not relenting in its efforts to improve the welfare of service personnel. It has vigorously stemmed the tide of corruption while pursuing due process towards ensuring transparency, accountability and rule of law.

    “I enjoin you to key into this laudable strides towards building our democratic values and sustainable national development.

    “As ambassadors of the armed forces, you are also obliged to reflect the core values of loyalty, integrity and unalloyed service on your societal interactions and activities, particularly in the area of national security.

  • Moody: Nigeria ‘ll ‘easily’ get $3.5b foreign loan

    Nigeria will easily achieve its target of $3.5 billion foreign borrowing  this year as improved oil output helps the economy to recover from last year’s contraction, the first since 1991, Moody’s Investors Service has said.

    Its Vice President and Senior Analytical Adviser for Africa, Aurelien Mali, said: “The international financial institutions are ready to support Nigeria. As long as its project-based lending, the funding will be available from lenders such as the African Development Bank (AfDB), and the budget support from the World Bank will come on top of that.”

    The government has been negotiating $1.25 billion in budget support from the World Bank and expects to get the remaining $400 million of a $1 billion credit facility from theAfDB, Mali said. It can raise the rest from bilateral and multilateral partners and also from lenders through commercial loans and or even a sukuk bond, he added.

    Moody’s rates Nigeria’s debt at B1, four levels below investment grade. Last month, S&P Global Ratings kept its assessment of the nation’s credit at one step lower than Moody’s.

    The nation will probably raise debt through more Eurobond sales this year, the International Monetary Fund (IMF) said. This is in addition $500 million placed last month as part of the 2016 budget and $1 billion raised in February.

  • Wheat farmers in Kano secure N50m loan

    The Wheat Farmers Association of Nigeria (WFAN) in Kano State, has secured a N50 million loan from the State Government, its Chairman, Alhaji Faruk Rabi’u, said on Wednesday.

    Rabi’u said that the loan would be used to assist the farmers warehouse their produce after harvest.

    The chairman told the News Agency of Nigeria (NAN) in an interview in Kano that the association had introduced the ‘ Warehousing Finance Receipt Programme’, to ensure safety of produce at the end of the season.

    Rabi’u said farmers who need money during the period would be given interest-free loan from the N50 million.

    “The idea is to discourage farmers from selling their produce at a give away prices after harvest.

    “When there is bumper harvest, middlemen buy and hoard the product and later sell it at exorbitant prices which is to the detriment of farmers.”

    He believed that the introduction of the warehousing receipt programme, farmers would keep their products safely until when the commodity appreciated.

    According to him, if any member requires money during the period his product is warehoused, the association would offer them the interest-free loan, to repay after selling the produce.

    Rabi’u said under the programme, farmers would get 30 per cent value of their products as loan and would be made to pay a token for warehousing their commodity.

    The chairman disclosed that the association had set up a committee to recover the loan disbursed to its members under the CBN anchor borrower programme.

    “Harvesting has commenced and we have set up a committee for loan recovery which will soon commence its assignment.”

    He called on farmers to ensure prompt payment of the loan, to avoid any embarrassment.

  • Etisalat, lenders disagree over $1.2b loan settlement terms

    Etisalat, lenders disagree over $1.2b loan settlement terms

    Local lenders have opposed a proposal by Etisalat Nigeria to convert part of the $1.2 billion loan into naira. Rather, the lenders want its parent, Abu Dhabi telecoms group Etisalat, and its shareholders to recapitalise the telco, it was gathered yesterday.

    A source privy to the negotiations said the seven-year syndicated loan, on which the telco defaulted in payment schedule, has a dollar portion of $235 million which the carrier wants to convert into naira to overcome chronic foreign exchange (forex) crunch at the interbank market.

    “Etisalat is asking for us to convert the dollar component to naira but banks don’t want that option and have told them to talk to their parent to settle the loan,” Reuters quoted a banking source as saying. The source said the regulators, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) which had waded into theimpasse and prevented a possible takeover of Etisalat Nigeria are favourably disposed to the  naira conversion idea.

    Vice President, Regulatory and Corporate Affairs at Etisalat, Ibrahim Dikko, said he would not be able to give update about the outcome of discuissions with the lenders. He promised to do that today.

    The UAE’s Etisalat own 45 per cent of Etisalat Nigeria, while Abu Dhabi’s Mubadala owns 40 per cent of the company.

    This meeting came about after the CBN and NCC agreed with local banks to prevent Etisalat Nigeria from going into receivership.

    Global crash in oil prices has seen the country grappling with forex shortage since oil is the country’s major forex earner. The economy slipped into a recession last year for the first time in 25-years.

    Most of the 13 lenders involved in the loan syndication had raised dollars abroad to participate, meaning that further naira weakness would see them receive fewer dollars.

    The currency had lost half of its value since the loan, which matures in 2020, was made. Interest is due monthly and the next principal payment is due in May, the source said.

    Etisalat, which generates 3.7 per cent of its revenues from the Nigerian business, has questioned the rationale of investing more in it and may sell its stake, sources say.

    Etisalat had written down the value of Etisalat Nigeria last year to $50 million due to naira weakness, Moody’s said in a note, adding that the default at the affiliate company did not affect the parent’s credit profile.

    Etisalat owes GT Bank N42 billion, and Access Bank N40 billion. It also owed Fidelity Bank N17.5 billion, the bank’s investor relations team told Reuters.

    Etisalat  has 20 million subscribers, according to NCC;s figures, making it the country’s number four mobile operator with a 14 per cent market share. South Africa’s MTN has 47 per cent, Globacom 20 percent and Airtel – a subsidiary of India’s Bharti Airtel – 19 per cent.

  • CBN, NCC move to intervene in Etisalat loan issue

    CBN, NCC move to intervene in Etisalat loan issue

    The Nigeria Communication Commission (NCC) on Thursday said the Commission and Central Bank of Nigeria (CBN) had moved to intervene in the Etisalat loan issue.

    The Director of Public Affairs of NCC, Mr Tony Ojobo said this in a statement issued in Abuja.

    “After a meeting on Thursday afternoon in Abuja between the Executive Vice Chairman of  NCC, Prof. Umar Danbatta and the CBN Governor,  Mr Godwin Emefiele and his team, a decision was reached to intervene in the loan issue between Etisalat Nigeria and a consortium of commercial banks.

    “The meeting which was held at the CBN in Abuja was convened by the financial regulator at the instance of NCC and the telecom regulator to further deliberate on how best to stop the attempt by the banks to take over Etisalat.

    “At the end of the meeting, the CBN agreed to invite Etisalat management and the banks to a meeting tomorrow, Friday, toward finding an amicable resolution,’’ he said.

    Ojobo said that the NCC as a regulator of the telecom industry had moved quickly to intervene earlier in the week by reaching out to the CBN because it was convinced of the negative impact such takeover move would have on the industry.

    He added that NCC was worried about the fate of the over 20 million Etisalat subscribers and the wrong signals this might send to potential investors in the Telecom industry.

    It was reported that on March 8, Etisalat was had been taken over by three banks because of its N541.8 billion debt.

    However, NAN correspondent spoke with the Head of Public Relations, Etisalat Nigeria, Ms Oluseyi Osuntedo, dispelled the talk that banks had taken over the company.

    Osuntedo NAN in Lagos that discussions were still ongoing between the banks and the company.

    “Discussions are going on; nobody is taking up the company.

    “It is not true that we are being picketed, whoever gave the information is not telling the truth,” she said.

    A consortium of some foreign and Nigerian banks, including Guaranty Trust Bank, Access Bank and Zenith Bank, have been having a running battle with the mobile telephone operator, over a loan facility totalling 1.72 billion dollars (about N541.8 billion) obtained in 2015.

    The banks said their attempt to recover the loan by all means, was fuelled by the pressure from the Asset Management Company of Nigeria (AMCON), demanding immediate cut down on the rate of their non-performing loans.
    .
    NCC appears not to be favourably disposed to the takeover proposal as it believed that Etisalat is not only a viable going concern, but also willing and able to negotiate the servicing of its loans.

    Etisalat is Nigeria’s fourth largest telecoms operator with about 21 million subscribers as at January 2017, according to the NCC.

    It commenced business in Nigeria in 2009. (NAN)

  • BoI offers Aba manufacturers loan tips

    BoI offers Aba manufacturers loan tips

    The Bank of Industry (BoI) has offered tips to Aba-based manufacturers on ways to secure its facilities to expand their businesses.

    BoI’s Acting Managing Director Mr. Waheed Olagunju coordinated  the National Micro, Small and Medium Enterprise clinics for viable enterprises, organised by the Federal Government in collaboration with the Abia State Government.

    Vice President Yemi Osinbajo opened the event, which had various Federal Government agencies involved in economic development interacting with Aba traders with the aim of growing and supporting their businesses.

    Olagunju noted that to easily access a loan, a business owner must imbibe some cardinal virtues, such as character, capacity, and commitment. He added that skills, requisite knowledge, and responsibility are needed to ensure that the person is committed to the business.

    Identifying collateral as a major constraint to accessing loans by most businessmen, Olagunju noted that the government had taken steps to make businesses viable by providing relevant tips to break the barriers of difficulties faced by some in accessing loans.

    “The first aim starts with marketing, how do manufacturers market their businesses? Hence the government has been coming up with procurement policies that are in favour of Small and Medium Enterprises (SMEs),” he said.

    Noting that this had been done in other parts of the world, the BoI chief said: “We are evolving the same thing in Nigeria so that the government patronise MSMSEs so that what happened in the past do not happen again.”

    Olagunju, however, said there was the need for Nigerians to change their taste for foreign goods and consume what they produce rather than consuming what they do not produce. He said now that Nigeria has foreign exchange crunch, the country is being forced to leave  foreign goods the more.

    Abia State Governor Dr. Okezie Ikpeazu expressed happiness that the Federal Government has finally recognised Aba as the hub of manufacturing not only in Nigeria but also in sub-Saharan Africa.

    He enjoined Abia indigenes to freely interact with various government agencies at the two-day event, noting that it was held to make their doing business in the state easy.

    On his part, Nigerian Association of Small Scale Industrialists (NASSI) Director-General, Imo Anasonye, described the event as a welcome development, adding that it was a good start for the government’s diversification programme from the non-oil sector.

    “What is happening here is a good thing in the sense that Nigeria wants to rebrand economically, diversifying from oil to the real sector, which is the productive sector.

    “That the maiden edition of the MSMSE Clinic is happening in Aba is not by accident because Aba has been the cradle and home of craftsmanship in Africa. There is no product that can be made locally that is not made here”, Anasonye added.

  • Foundation gives farmers N100m loan

    An industrialist, Chief Chamberlin Okechukwu Adiaso, has  given a N100million loan to farmers in Abia State.

    Adiaso, Mayfair Project Ltd Managing Director, said the loan was disbursed through the Nma Abia Co-operative Society.

    He spoke during opening of an hospital in honour of his mother Mercy Adiaso in Obieketa autonomous community in Isiala Ngwa South Local Government Area of the state under the auspices of this foundation.

    He said: “I am the initiator of Nma Abia. We gave out agricultural loans free of interest in 2016. There are so many young men and women, who are loitering the streets because they have no one who can give them even N20, 000 to support their education. We have set up an educational scheme that cuts across the length and breadth of Abia State.

    ‘’Apart from giving out agricultural loans and scholarships, I have also been engaged in upgrading infrastructure in the rural communities. I started grading roads in my local government area and beyond to help open up the rural areas and create access to the villages.’’

    Hailing Adiaso for the gesture,  Think Nigeria First Initiative Director-General, Alhaji Abubakar Tsanni, urged states to emulate him to develop their communities.

    He urged All Progressives Congress (APC) members in Ukwa Ngwa Local Government Area to imbibe President President Muhammadu Buhari’s change mantra by electing incorruptible leaders.

    Peoples Democratic Party (PDP) Vice Chairman in the state Chief Allen Nwachukwu praised Chief Adiaso for his empowerment of less privileged across the state.

    He said Adiaso touched many lives by donating N100 million for agricultural soft loans.

    The traditional ruler of Obieketa autonomous community, Eze Charles Chukwudinma, thanked  Adiaso for grading all the roads in the local government and beyond.

    The Diocesan Bishop of Ngwa Central Diocese Rev. Prince Uwaomakalu said Adiaso’s late mother, was a merciful woman, was kind to the church, ministers and expectant mothers. He said her maternity home should be named Mercy Maternity Home.

  • Fed Govt’s $29.9b planned loan okay to reflate economy, says Gbajabiamila

    Fed Govt’s $29.9b planned loan okay to reflate economy, says Gbajabiamila

    The plan of the government to borrow $ 29.9 billion is necessary for the country to come out of recession, the Leader of the House, Femi Gbajabiamila has said.

    Speaking while giving reporters the end of year report on the activities  of House of Representatives for 2016, the House Leader said the reason this administration is seeking such quantum of funds for infrastructure is because of the foundation laid by the previous regime.

    According to him the borrowing plan is specific and targeted and necessary to pull the country out of recession and reflate the economy.

    Giving reason why the Buhari administration is borrowing despite the country’s exit from the Paris Club of creditors during the government of former President Olusegun Obasanjo, he said: “I’m glad you mentioned Obasanjo. But you forget that between Obasanjo and this government, there was another government that served for six, eight years or however long and I believe and unfortunately I must say it, they brought us to this sorry state that we are in today.

    “It is what this government found on ground that informed the quantum and the nature of the borrowing they have to undertake. Now to get out of this recession and the sorry state we have found ourselves, I don’t think we can do it without borrowing.

    “Borrowing is necessary, United States, England, Germany they all borrow Borrowing it is an essential feature of democracy especially when you’re running a deficit budget.

    “For now, the borrowing is necessary to pump into the system to inflate activity in the economy, diversify the economy, theres a lot of things we need money for and if the country is not making money, like we used to we have to borrow money.”

    The lawmaker said “former President Obasanjo was able to come to an agreement to exit the Paris club because we were making money”

    He said the country is still within the borrowing regulations as relates to the nation’s GDP.

    On the possibility of increasing the salary of worker particularly in the face of soaring inflation and biting recession, he admitted that salaries at present “are very low,” and that “something has to be done about it.”

    He added: “The House is a House of the people and it will never back away from any move to increase salaries of worker. That is the reason we’re here, weather government or private workers, we’re here because of the people. And i for one and I believe a lot of our members, if and when the issue comes on the floor, I doubt if there will be a dissenting  voice.

    “And we will begin to,look at that viz- a- viz inflation and unemployment

    “Personally, I believe wages are too low as we stand and i think something has to be done about it. And I think the House will be proactive in making that move.”

    On legislation by the 8th House in the past one year, the House Leader said:

    “In the last 12 months, a total of 551 Bills were introduced in the House for the first time with 64 cases of consolidation of several Bills addressing similar issues. Five of the Bills were negatived (not passed) while only 179 passed for second reading and 47 Bills successfully passed by the House in the year 2016.”

  • ‘$30b loan won’t be squandered this time around’

    ‘$30b loan won’t be squandered this time around’

    Prof. Chris Onalo, Registrar/CEO, Institute of Credit Administration (ICA), in this interview with Ibrahim Apekhade Yusuf is convinced that the proposed plan by the federal government to obtain $30billion credit is in order given the parlous state of the economy. Excerpts:

    DO you think there is any justification for the $30billion loan by the federal government?

    My response as a credit economist and Registrar/CEO of the Institute of Credit Administration (ICA) is that Nigeria as a country, and as a member of the United Nations and other multilateral institutions is good and fit to pick up any loan that will aid the economic development of Nigeria. I believe the government of President Muhammadu Buhari cannot be an exception in approaching multilateral credit providers or institutions for its infrastructural development needs in Nigeria. As the largest economy in Africa and the most populous black nation on earth there is no way Nigeria can generate enough funds without relying on international credit line. Even if the oil price is at $200 per barrel and Nigeria is producing 3-4million bpd, we will still require credit line and will still need to borrow from these multilateral agencies that provide soft line credit that can be accessed by any developing or newly developing economy.

    Are you saying the reaction by Nigerians is uncalled for?

    I believe the reaction that has greeted the quest by the government to borrow $30billion for development finance, arises from the past records of such borrowing. People are not having confidence that the funds would be utilised as expected and as such could consequently result in Nigeria becoming indebted to credit providers as it was in the past. We can therefore say that the fears being expressed by Nigerians in these circumstances cannot be ignored.

    I think the government needs to provide sufficient proof that such borrowings will not go the way of the past and I believe such proof is already manifested. The government of the day, in my opinion, is already taking such steps. Really, the kind of infrastructure Nigeria needs today is beyond the financial capacity of this government.

    The question being asked is from where are we going to pay back this loan?

    One thing you need to know is that the attitude of credit providers out there is that they are accustomed to the situation of the country. What I mean is that they know that our major economic strength as a country is oil and they understand that the oil prices has fallen globally as such they won’t give us very stringent conditions that we cannot meet. Having said that, I think the government must be able to clearly make a presentation stating our position and all in order to strike the critical balance.

    But isn’t there other alternatives to taking this loan?

    I don’t think there is any alternative in the sense that we have seen the critical scenarios in the nation’s revenue generation. Nigeria is facing recession so there is a limit to government ability to generate revenue from internal sources as it were. There is limit government can impose levies like taxes, VAT on the citizenry. Even though the oil price is trying to pick up, production is being undermined by the activities of the restive youths in the Niger Delta considering the spate of bombings we have witnessed in recent times. The export sector is comatose and agriculture sector, which is receiving a bit of attention from the government lately, is not something we can bank on for the time being. Even the funds retrieved from looters are not big enough. I think the government seems to have no alternatives as it were.

    But to be honest with you, I think we need to move forward. We must understand that a lot of damage has been done on the system, so people should not be quick to expect that the government of the day will be able to fix things up with a snap of a finger. You would recall that there were no inhibitions at all by these so-called past leaders but imagine after doing such incalculable damage these same people who overthrew and sack the rule of law are now running to the constitution and fighting back. You can see a lot of hiccups and lots of hurdles we have to cross. The same Nigerians who plundered and undermined the future of this country are now coming to fight back. Corruption is really fighting back. If the international community is willing to give us money, we should encourage the government to go ahead. All we need to do is to put measures in place that would ensure that such funds are well-utilised.

    I think Mr. President should go beyond politicians and get a mix of professionals who understand the intricacies of development finance. What the government can also do is to invite experts from the credit providers to ensure the efficient management of these funds in order to guarantee its judicious use. I believe if these measures are taken, the loan will not go the way of others. That is the essence of the change agenda we’re talking about. Something just must give this time.

  • BoI unveils N10b agro-equipment loan scheme

    BoI unveils N10b agro-equipment loan scheme

    The Bank of Industry (BoI), in collaboration with its development partners, has unveiled a-N10billion agro-equipment loan for agricultural service providers and farmers.

    The bank said with better access to credit to fund the acquisition of agro equipment, there would be improved efficiency and production output in the sector.

    Its Acting Managing Director/CEO, Waheed Olagunju said applicants under  the scheme are categorised into micro, small and medium schemes.

    Olagunju, who spoke yesterday in Abuja at the signing of the Memorandum of Understanding (MoU) between the bank and its development partners on the agro mechanisation product programme, said: “Recognising the catalytic role that agro mechanisation plays in boosting food production, BoI in collaboration with the Development Partners, has designed a product programme to provide finance for agro equipment service providers and well established farmers as well,” adding thatThere will be improved efficiency and production output in the agricultural sector.

    “It is a N10billion fund earmarked exclusively for the acquisition of agro-equipment by either agricultural service providers or well established farmers. N10billion is the largest amount of money that the bank has earmarked for any programme and this is testimony to the importance of agro mechanisation in economic development of Nigeria.”