Bank of In­dus­try ex­plains strin­gent con­di­tions on loans

Daily Trust - - NEWS - By Sun­day Michael Ogwu

The Bank of In­dus­try yes­ter­day de­fended the strin­gent con­di­tions at­tached to loans, say­ing they were meant not only to pro­tect the lend­ing in­sti­tu­tion it­self but the in­di­vid­ual pro­mot­ers of projects the loans are used to ser­vice.

Act­ing Man­ag­ing Di­rec­tor of the bank Mr. Wa­heed Olagunju said this yes­ter­day at a break­fast in­ter­ac­tive ses­sion dur­ing the Char­tered In­sti­tute of Stock­bro­kers 3rd an­nual work­shop in Abuja. The theme of the work­shop was up­date on the trans­for­ma­tion agenda: Ex­pec­ta­tions from the pri­vate sec­tor.

He said of­ten when projects fail; it was the pro­moter who suf­fers the first and likely the most se­vere ef­fect of such fail­ure. It takes a cou­ple of project fail­ures for the lend­ing in­sti­tu­tion to be sig­nif­i­cantly af­fected he said. He said there have been cases of pro­mot­ers cav­ing in on the pres­sure of project fail­ures.

At the for­mal open­ing ses­sion of the three day event, chair­man of the Se­cu­rity and Se­cu­rity Com­mis­sion (SEC) Suleiman Ndanusa said no coun­try could achieve real eco­nomic trans­for­ma­tion with the cap­i­tal mar­ket. He said it was the cap­i­tal mar­ket that helps ag­gre­gate fund­ing for lo­cal and for­eign in­vest­ments.

Chair­man of Honey­well Group Oba Otudeko in his re­marks iden­ti­fied the ex­pec­ta­tions of the pub­lic sec­tor from pri­vate businesses in the de­vel­op­ment of the econ­omy.

The for­mer pres­i­dent of the Nige­rian Stock Ex­change also said lo­cal businesses must po­si­tion them­selves to be com­pet­i­tive to be able to part­ner with for­eign in­vestors who wish to en­ter the lo­cal mar­ket us­ing businesses in the en­vi­ron­ment just as he said it was im­por­tant for in­vestors to be sen­si­tive to the need of their host com­mu­nity.

He said both sec­tors needed to ap­pre­ci­ate other and syn­er­gise to suc­ceed.

“There must be fair­ness and level play­ing field for all businesses as well as pro­vide free move­ment of goods and ser­vices,” Otudeko said.

He said govern­ment ex­pects in­vestors-both for­eign and lo­cal must re­spect lo­cal laws and poli­cies and not seek to jump the queue.

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