Bank of Industry explains stringent conditions on loans
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.