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Business Owners, Mayakorp Boss Call for Funding for SMEs

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Owners of small and medium scale enterprises (SMEs) and businesses in Nigeria have called on banks and other microfinance organizations to assist them with funds to grow their businesses.

They said that the sector has been neglected despite all the hype of availability of funds to assist them.

The businessmen spoke after a meeting at the palace of the Dr. John Chukwudi Nwosu, Ezeigbo of Mushin, Lagos.

Speaking at the occasion, C.F.C. Obih, president, Market Leaders Association of Nigeria, said that over the years, small and medium scale enterprises are catalysts for economic growth and national development in Nigeria.

SME is also assumed to play the role of employment generation, facilitator of economic recovery and national development.

However, this sector has being experiencing retarded growth due to many factors including: lack of easy access to funding/credit which can be traced to reluctance of banks to extend credit to them owing to poor and inadequate documentation of business proposals; lack of appropriate and adequate collateral, high cost of administration and management of small loans; as well as high interest rates.

According to him, “We have approached banks individually and collectively to assist us with loans but most of us are usually disqualified due to lack of knowledge of the process. Moreover, banks do not have enough personnel to train all SMEs on the rudiments. That is why we have gathered ourselves together on the platform of a summit to be educated on how we can assess loans to improve on our businesses. Unfortunately, most banks are still not supportive but we are optimistic in helping ourselves to grow our business and Nigerian economy.”

Martins Ndigwe, managing director of Mayakorp Nigeria Limited in his contribution said that sector has the most need for financial loans to boost their businesses.

He emphasized that they also need to be educated on the process of obtaining such loans.

Unfortunately, the banks are not helping much to enlighten them on how to grow their businesses perhaps due to inadequate human capacity.

Ndigwe said “The Annual Business Empowerment Summit coming up in July 4, 2013 at the Sports Hall of Teslim Balogun Stadium is designed to bridge the gap. This inaugural edition will bring together over 5, 000 small and medium scale traders and dealers on automobile, telecommunications, information technology, agriculture, food and beverages, building materials and household wares sectors in an interactive business forum with their product and service providers.

By doing this, we hope to resolve those challenges which affects them from developing capacity to realizing their full potentials as well as the prospect for improvement and development for employment generation, economic growth and national development,” he stated.

At the end of the summit, participants are expected to improve on their businesses with strengthened commitment to economic reform which in turn would offer a turning point in facilitating the recovery of Nigeria economy and national development.

The Mayakorp boss called  on banks, financial institutions and other sectors to come to the aid of this sector by supporting a programme such as this.


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Nigerian Manufacturing Sector Contracts for 5th Consecutive Month – CBN

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The Manufacturing Purchasing Managers’ Index (PMI) in September stood at 46.9 index points, indicating a contraction in the Nigerian manufacturing sector for the fifth month.

This was disclosed by the Central Bank of Nigeria (CBN) in its September PMI report released last week.

According to the report, four out of the 14 sub-sectors surveyed reported expansion (above the 50 per cent threshold) in September.

It listed the expansion order as electrical equipment; transportation equipment; cement and nonmetallic mineral products.

It said the remaining sub-sectors reported contractions in the following order: petroleum & coal products; primary metal; furniture & related products; printing & related support activities; food, beverage & tobacco products; textile, apparel, leather & footwear; chemical & pharmaceutical products; fabricated metal products and plastics & rubber products; while the paper product sub-sector was stable.

Production

At 47.3 points, the production level index for the manufacturing sector indicated contraction in September for the fifth consecutive month.

Of the 14 sub-sectors surveyed, five recorded increased production level, one reported same level of production, while eight recorded declines in production.

New Orders

At 46.4 points, the new orders index also contracted in September for the fifth consecutive month. Six sub-sectors reported expansion in new orders, while the remaining eight recorded contraction in the month.

Supplier Delivery Time

The manufacturing supplier delivery time index stood at 53.5 points in the month, indicating a faster supplier delivery time for the fifth time.

Six of the 14 sub-sectors recorded improved suppliers’ delivery time, five reported same level, while three recorded slower delivery time

Employment Level

The employment level index stood at 44.1 points, indicating contraction in employment level for the sixth consecutive month.

Of the 14 sub-sectors, two recorded growth in employment, three recorded same level of employment, while the remaining nine recorded lower employment level in the review month.

Raw material Inventories

The manufacturing sector inventories index also contracted for the sixth consecutive time in September to 43.0 points. Four of the 14 sub-sectors recorded growth in inventories, while the remaining 10 recorded lower raw material inventories.


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FG Sacked IST Members over Fraud- Ahmed

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Mrs Zainab Ahmed, minister of Finance Budget and National Planning, has said the Federal Government sacked some past members of the Investments and Securities Tribunal (IST) as they indulged in corruption.

FG Sacked IST Members over Fraud- Ahmed

Inaugurating the new members, the minister charged the new members to eschew corruption and be forthright.

Bar. Azi Amos Isaac was appointed as Chairman for a five year term and Bar. Nosa Smart Osemwengie, was re-appointed as member for a second term of four years.

“The problem with the tribunal has been infighting amongst members, lack of industrial harmony and series of complaints bordering on maladministration.

“This has been the bane of the tribunal and a source of embarrassment not only for the Ministry of Finance but for the government in general,” Ahmed said.

The new chairman, Azi, assured the finance minister that, “the teething issue of restiveness has been addressed since he assumed duty,” adding that, “The place is calm and the staff have become very supportive.”

Azi said since 2003, the tribunal has “given judgment in the value of assets worth over N844 billion and that from 2017 to date, they have given decisions in monetary value totalling over N28bn.

“It has not failed in its adjudicatory responsibility.

“It has carried out its assignment with candour and integrity and intends to improve on what has been on ground.”

 


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CBN Bans Customer-to-Customer Forex Transfer

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Central Bank of Nigeria (CBN) has banned transfer of foreign exchange (forex) from one customer to another.

CBN Bans Customer-to-Customer Forex Transfer

According to the apex bank, forex cash lodgements into domiciliary accounts can only be done by the account owners henceforth.

An internal memo available in the media space explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

The circular states: “Forex inflows cannot be credited to customers until the legitimacy of funds is established.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

Also oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds.

Offshore forex inflows from other Nigerian banks and internal account to forex transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

“Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.

“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.” Payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

 


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