By Ahmed Suleiman
Manufacturers Association of Nigeria (MAN) Kwara and Kogi States branch have accused the commercial banks of demanding unrealistic collateral from industrialists and other business sectors
The branch Chairman of the association, Alhaji Kamorudeen Yusuf, made the disclosure during a sensitisation programme at the weekend themed, ‘Deriving the full benefits of loan facilities in the banking industry, the dilemma of bottlenecks and bureaucracy ‘ in Ilorin.
He said: “Hardly can a major manufacturing firm operate without loans. The best financial system is therefore one which ensures that funds are accessible to industrialists by way of soft loans.
“Loans for running businesses have always been available at virtually all our banking institutions. Unfortunately, their availability has been more on paper than in our hands.
“Several factors have denied us in our efforts to obtain these loans. The most worrisome being the hydra headed bottlenecks and bureaucracy.
According to him, most of the banks demand for collateral of about 140 per cent over a loan that is 80 per cent, thereby frustrating the manufacturer’s interest on that particular loan.
Yusuf, who was represented by the Head of Business Department, KAM Industries Limited, Mr. Bola Awojobi, stressed that for the country to attain industrial development, the apex banks should fine tune guidelines for commercial banks granting loans to investors.
He stressed that manufacturing activities are essential for national growth and development in terms of creating the needed goods and services and also creating employment opportunities for the masses.
The guest lecturer from Al-Hikman University, Dr. Aderemi Medupin tasked industrialists to monitor the growth of their investment through concrete records keeping.
Also , the Manager, Bank of Industry, Ilorin branch , Mr. Olusegun Adekogbe, assured of support to industrialists and micro , small and medium enterprises with loans for the expansion of their businesses.
He, however, said that the BoI must be convinced of the genuineness and profitability of the business and the ability to repay loans before they could be granted credit facilities.
