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BoI Strategises to Increase SMEs’ Access to Loans

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Worried by inability of SMEs to access its loans as a result of badly presented applications, the Bank of Industry (BoI), at the weekend unfolded plans to partner Business Support firms (BSFs) to drive its intervention agenda in the small and medium enterprises sector.

Besides, the bank also expressed its resolve to explore new funding alternatives in a bid to realise its mandates, following the pressure, which has continued to mount on government’s resources in terms of financing.

The bank noted that it was seeking new funds to make impactful contributions to Federal Government’s National Industrial Revolution Plan (NIRP) as well as serve the underserved, particularly the small and medium enterprises.

Addressing journalists in Lagos, Rasheed Olaoluwa, managing director, BoI, noted that the bank was developing strategies to improve stakeholders’ access to funds.

“BoI is trying to achieve a balance in its functions as a development finance institution in terms of delivering social impact and maintaining a sustainable loan infrastructure.

“We have met with Business Support Firms to address the large percentage of substandard loan applications as we have discovered that a good way out is to engage with BSFs who will receive the applications and help review them as they better understand how a bankable proposal should look like,” he said.

He added that the SME sector would receive adequate attention from the development bank and their funding challenges addressed through concrete and visible steps.

“Although we are confident that key shareholders  in the NIRP initiative like the Ministry of Finance Incorporated and the Central Bank of Nigeria CBN, will continue to support the bank with some equity injection, but considering the fact that there is a lot of demand on government’s resources, we are exploring alternative modes of funding such as continuation of sector specific intervention funds by the CBN, Ministry of Agriculture, Solid Minerals and others; managed funds from various state governments and foundations; long-term loans at very low interest rates from multi-lateral/international development institutions,” he said.

He added that BoI would also explore domestic and international bond issuance and other sustainable annuity sources that may become statutorily imperative in the medium to long term.

He disclosed that in pursuance of the success of President Goodluck Jonathan’s transformation agenda, a major focal point of the bank was to help promote employment generation and wealth creation through access to development funds.

“We have met with Business Support Firms BSFs to address the large percentage of substandard loan applications as we have discovered that a good way out is to engage with BSFs who will receive the applications and help review them as they better understand how a bankable proposal should look like,” he said.

“As you are aware, our Honourable Minister in the Ministry of Industry Trade and Investment, Olusegun Aganga, is leading the efforts to industrialise Nigeria and to create millions of jobs in the process. At BoI, we’re passionate about these objectives,” he said.

He said that he had also met and discussed with the Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina on issues relating to the various agricultural development funds managed by BoI as part of the minister’s efforts to transform Nigeria’s agricultural sector.

“We are in agreement that there is room for wider collaboration between his ministry and BoI, especially in the area of financing the agricultural value chain,” he said.

He unfolded the bank’s agenda to pursue good corporate governance; sharp focus on its core mandate; sound risk management and compliance; venture capital investments; partnerships and collaborations; customer service responsiveness and create linkages between innovation and industry.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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