Connect with us
nairametrics

Business News

BoI’s MD complains that SMEs don’t repay loans, Nigerians react 

The MD of Nigeria’s BoI, Kayode Pitan, was recently quoted as saying that it is very challenging to get repayment on loans issued to SMEs.

Published

on

BoI’s MD complains that SMEs don’t repay loans, Nigerians react 

The Managing Director of Nigeria’s Bank of Industry (BoI), Kayode Pitan, was recently quoted as saying that it is very challenging to get repayment on loans issued to SMEs. According to him, some business owners in the country often behave as if loans given to them by the BoI represent their own share of the “national cake”. As such, they refuse to pay back the loans when they are supposed to.

“People have the perception that money from BoI and other DFI, are their share of the “National Cake, so they avoid repayments.”

[READ MORE: CBN grants approval for banks to debit accounts of loan defaulters]

Getting a loan,

It is very easy to see Pitan’s frustration. After all, the issue of loan default is a general problem bedevilling the Nigerian banking sector. The problem also explains why Non-Performing Loan has been a major problem in the country for such a long time. Interestingly, it is the same entrepreneurs who often complain about lack of access to financial facilities that are guilty of defaulting on loans. This makes it very problematic for banks to lend, no doubt.

GTBank 728 x 90

In the case of the Bank of Industry, however, there is another way to consider the issue of loan default. Some Nigerians who reacted to Pitan’s complaints have pointed out that one of the reasons SMEs default on BoI loans is because said loans are supposedly given to people who are underserving of them in the first place. One person even alleged that the BoI only gives loans to entrepreneurs who are willing to give kickbacks to officials of the institution.

Other people also asserted that staff at the BoI only approve loans for those they know, regardless of whether such people meet the loan requirements. In other words, due diligence is seldom followed through, allegedly. Sadly, when the loans are not paid back, BoI’s Pitan begins to complain.

Coronation ads

Other people, however, did point out that refusal to repay loans is a bad attitude that must stop. Those of us here at Nairametrics agree to this point of view because loan defaults have disadvantages that somehow affect everyone, albeit negatively.

Loan

Jaiz bank ads

[READ ALSO: Non-Performing loans hit 4-year low as Banks recover N496 billion]

Stanbic IBTC

Note that the Bank of Industry is a state-owned development financial institution whose primary function is to fund the real sector of the economy by providing funding “for the establishment of large, medium and small projects as well as the expansion, diversification and modernisation of existing enterprises…”

 

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs. He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor. Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan. If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Corporate Press Releases

PAC Trustees webinar highlights seamless access to credit facilities for organizations  

The webinar was geared towards enlightening the general public about the necessary requirement for ensuring a smooth lending process for corporations irrespective of size.

Published

on

PAC Trustees Limited, a leading Trust company in Nigeria on Tuesday 24th November hosted financial experts in a conversation about the role of Corporate Trustees in Credit administration.

The one day-event, which held virtually, was geared towards enlightening the general public about the necessary requirement for ensuring a smooth lending process for corporations irrespective of size.

The Virtual discussion follows the announcement by the Central Bank of Nigeria (CBN) on the reduction of the benchmark interest rate to 11.5%, from 12.5% amongst other updates from the Monetary Policy Committee meeting held in September.

Kicking off the virtual event with his opening remarks, the Managing Director of PAC Trustees, Yinka Adegbola highlighted the current standing of PAC Trustees as a Corporate Trustee to many organizations including the Lagos state government, Ogun State government as well as the 50 Billion Agro Bond when he listed some of the services and products offered.

In his remark, he added that the role of credit administrators is only one of the many services the Trust company offers including products such as, PAC Celebrity Trust, PAC Diaspora Trust and PAC Education Trust can attest to this.

GTBank 728 x 90

Taking the first shot as a speaker at the webinar, Heritage Bank’s Acting Chief Risk Officer, Enterprise Bank Management, Kehinde Olugbemi began by stating the relevance of credit administrators in the borrowing process while emphasizing on the necessary qualities these administrators should possess which is mostly obtainable among Trust companies.

During his presentation, using significant scenarios, he reiterated the relevance of Trustees in credit administration. However, he urged Trust Organizations to stay abreast with regulations and governance guidelines.

Trust Companies inclusive of PAC Trustees are regulated by the Securities and Exchange Commission as well as other guidelines. There is therefore an expectation that they work within the confines of the law. As such, the Trust Administration Memo should explicitly capture salient issues and relevant administrative charges as dictated by governing regulations,” he declared.

Coronation ads

On his part, the Global Chairman, Tokunbo Orimobi Legal Group, Michael Orimobi, shed light on security documentation.

The astute commercial lawyer shared that, “nomenclature can be confusing and it has therefore become necessary to go into the substance of the document to actually understand what it is really referring to.”

He concluded by admonishing lawyers to not only focus on documentation but to most importantly advise clients on the appropriate transaction and security structure for the deal which often determines the documentation process and helps in avoiding the common problems of over-collateralisation and under-collateralisation.

Following the presentations, attendees of the virtual event were given the opportunity to ask questions, many of which were succinctly answered by Mr. Orimobi.

After which, the Executive Director of PanAfrican Capital Holdings Limited, Eric Okoruwa shared a vote of thanks with honourable accolades to attendees and panelists.

Jaiz bank ads

PAC Trustees Limited is a wholly owned subsidiary of PanAfrican Capital Holdings Limited. Incorporated with the Corporate Affairs Commission and duly registered with the Securities & Exchange Commission (SEC), the organization focuses on providing Trust services in three (3) major areas – Private Trust, Public Trust and Corporate Trust

Stanbic IBTC

A recording of the session can be found here https://bit.ly/2JaSbb4 using the code, FkTw7iO!

Continue Reading

Corporate Press Releases

Benefits of having an immutable ledger to the healthcare system

EHR Data’s vision is for both the healthcare industry and individual patients to benefit from the blockchain platform housing healthcare records.

Published

on

Technological progress has paved the way for advancements in medical science; and ample healthcare data that has made momentous contributions in the treatment of various diseases. However, there is still a lot more to be done. The current pandemic has shown everyone that data silos are not equipped to handle a huge amount of healthcare information. So many people are dying all over the world; and many of these can be prevented with enough transparent patient data within the healthcare sector.

In the latest Bitcoin news, on the second day of the CoinGeek Live conference, data platform EHR Data presented their concept of clinical healthcare data that are stored, shared and managed at an individual level on the blockchain, which is a globally distributed digital ledger.

Currently, healthcare data are stored and accessed only on private servers and transferred to third parties who request for the data. According to Chief Clinical Officer Cheryl Jorgenson, real-time clinical information cannot be accessed, clinical services cannot be tracked and there is nonexistent workflow integration in data structures at present. Patients also have no say in how their healthcare history is stored. Many even find themselves in a bind when trying to access their own personal healthcare data.

Blockchain Technology Used for Healthcare Data

Satoshi Nakamoto first used blockchain technology as an immutable database where all Bitcoin transactions are stored. It is distributed in that all nodes on the Bitcoin SV (BSV) network have a copy of the blockchain; and it is immutable because data recorded on the blockchain cannot be changed or altered.

GTBank 728 x 90

Headed by Jorgenson, Chief Scientist & Consultant Ron Austring and Director of Product Design Joseph Eckstein, EHR Data proposed that a marriage between healthcare data and blockchain technology is the solution to the lack of transparent healthcare data. This will then create the world’s biggest health data set. EHR Data envisions healthcare records to be stored at a personal level, meaning patients will have control over who can access their data, on what terms and for how long.

Healthcare data on the blockchain can have multiple uses through micro transactions and smart contracts. In building this blockchain platform, EHR Data said they hope to improve the way private healthcare data is accessed, managed and even monetized. This is certainly big Bitcoin news for blockchain technology to be used in such a relevant manner.

Coronation ads

Benefits of Housing Healthcare Data on the Blockchain Platform

EHR Data’s vision is for both the healthcare industry and individual patients to benefit from the blockchain platform housing healthcare records.

  • This data model is built with the capacity to assimilate to the various systems being used by hospitals and other medical organizations. Inter- and intra-operability of data is the main objective—being able to provide “a single source of truth powered by the BSV blockchain.”
  • Through the use of the BSV blockchain, which is highly scalable, this new data system can widen its range to more states, more countries and more drug types. It will consolidate healthcare data and systems into a more practical and accessible format.
  • Consumers of healthcare need not remain as mere consumers anymore. This proposed model allows patients to benefit from more positive health results and lowered healthcare costs brought about by an upgraded data structure. Individuals can also earn money by allowing medical and pharmaceutical institutions to gain access to their personal healthcare data for research and other uses.

This most recent Bitcoin news could not have come at a better time. With the ongoing pandemic, this proposed model of using the BSV blockchain to power a new healthcare data system not only serves to benefit national and global healthcare, but also provides individuals with a new source of income.

Jaiz bank ads
Continue Reading

Coronavirus

Covid-19: African Union in talks with China and Russia over vaccine

The AU and Africa CDC have revealed that they have reached out to both China and Russia over the possibility of vaccine partnerships.

Published

on

Covid-19: African Union in talks with China and Russia over vaccine

The Africa Centres for Disease Control and Prevention and the African Union announced they have been in talks with China and Russia over the possibility of vaccine partnerships to ensure that Africa is not left behind when vaccines become available.

This was disclosed by John Nkengasong, Africa CDC Chief, at the Bloomberg Invest Africa online conference.

READ: Covid-19: Pfizer to file for emergency authorization for its vaccine, reaches safety milestone

Mr. Nkengasong said that Africa would not limit itself to only one vaccine partner and that Africa was willing to work with as many partners as possible to provide a vaccine for its 1.2 billion people.

“We are not limiting ourselves to any particular partner. As a continent of 1.2 billion people, we are willing to work with any partner who adheres to our strategic plan for vaccine development and access in Africa.

“The continent is taking the access and development of vaccine very, very seriously. We really need to see clinical trials being done on the continent, so they address issues like background infections from other diseases.”
He disclosed that the Africa CDC resumed talks last week with China, to discuss partnerships with Chinese Drug Manufacturers and also clinical trials in Africa. He added that Russia has been approached with a similar plan.

He said that the WHO Covax programme only covers 20% of the population, but Africa will need 60% of its population vaccinated to achieve herd immunity.

GTBank 728 x 90

There are multiple avenues being explored now to make sure Africa has the appropriate doses of vaccines and also that we have that in a timely fashion, not in a delayed manner,” Nkengasong said.

He revealed that the AFREXIM Bank agreed to finance vaccine procurement with $5 billion and is waiting to see how much it will receive from World Bank’s $12 billion vaccine procurement fund for developing nations.

READ: COVID-19: G-20 to extend debt relief to developing nations

Coronation ads

What you should know 

Nairametrics reported earlier this month that Pfizer Inc. disclosed that its experimental vaccine, which is jointly developed with BioNTech, was more than 90% effective in preventing COVID-19, based on initial data from a large study in the ongoing phase 3 trials.

(READ MORE: COVID-19: AstraZeneca vaccine could be 90% effective against the virus)

Last week, a pharmaceutical company, Moderna Inc., stated that its COVID-19 vaccine was 94.5% effective in treating coronavirus, after preliminary analysis of a large late-stage clinical trial.

The G-20 nations also announced a pledge to pay for vaccine distribution to developing nations that could not afford it. The leaders also unveiled a debt extension programme to developing nations during the weekend’s G-20 summit.

Jaiz bank ads

The Federal Government of Nigeria also announced through the Ministry of Health, that it would inaugurate an 18-man Covid-19 Vaccine Task Team, in a bid to ensure vaccine security In Nigeria.

Stanbic IBTC

Continue Reading