Business Archives - Page 25 of 49

Manufacturing companies have said they cannot access loans at the Central Bank of Nigeria’s five per cent lending rate under its intervention scheme for manufacturing and other critical sectors. According to them, the loans have structural framework problems and are almost never accessed in banks at five per cent. They added that banks were more open to giving manufacturers loans at their official market rates. Speaking with The PUNCH, the Chairman of Manufacturers Association of Nigeria’s Electrical/Electronic sectoral group, Mrs Ijeoma Oduonye, said efforts made by her firm towards accessing the intervention funds through one of its designated commercial banks had proved abortive. She said, “Before now, we tried to work through one of the banks, but it didn’t materialise, now we are talking with another bank. It is a sector intervention fund that was going for nine per cent before but now they brought it to five per cent. But we as a company have not accessed it because the commercial banks we wanted to process it in could not process it. “I do not understand the details from their end. I don’t know the regulation between the bank and the CBN. But the bank told my firm they won’t be able to process it. Ordinarily, commercial banks would prefer you use their funds, it is at a higher interest rate.” Also, according to the Sectoral Chairman of the Manufacturers Association of Nigeria’s Gas users and the Executive Director of Haffar Industries, Michael Ola-Adebayo, the structural framework of the CBN intervention leading has complexities that limit manufacturers from accessing them through the designated commercial banks. He said, “We have not been getting the loans. Has any manufacturer been borrowing this money? The commercial banks have not provided the facility to borrow money at five per cent, or even 10 per cent. According to a The PUNCH report, the CBN agreed to leave interest rates at five per cent per annum for critical sectors and manufacturing industries until March 2023. This decision followed the resolution of the Monetary Policy Committee to increase the benchmark interest rate to 13 per cent from 11.5 per cent. When contacted, the Director of Corporate Communicatios, CBN, Mr Osita Nwanisobi, disagreed with the position of the manufacturers. Read Also CBN’s rate hike portends harder times for SMEs We’ll no longer route sensitive election materials through CBN – INEC Bank customers to produce indemnity for online transfers above N1m – CBN According to him, more than N1tn has been disbursed under the intervention scheme for the manufacturing sector and others. He said, “I don’t know who the manufacturers are, because if we have a fund, and the payout as of today is over N1tn, is it not manufacturers that collected this money? “If over N1tn has been disbursed, are they ghosts? It couldn’t have been a ghost. Under the Differentiated Cash Reserve Requirement, over N1tn has been given out. The one for manufacturers, we call it the DCCR, and it is also at five per cent.” Nwanisobi added that the manufacturing firms that might have been unable to obtain funds through the scheme were not able to pitch convincing proposals on the projects that the funds would be used for. He stated, “The banks would have to do due diligence on those projects. Somebody else has to carry that credit risk.”

MAN tackles CBN over N1tn low-interest loan

Manufacturing companies have said they cannot access loans at the Central Bank of Nigeria’s five per cent lending rate under its intervention scheme for manufacturing and...

Crude oil exports leap by 194%, hit N5.6tn in three months

Business2 years ago

Crude oil exports leap by 194%, hit N5.6tn in three months

Nigeria’s crude oil exports jumped to N5.6trn in the first quarter of 2022, reflecting nearly 200 percent increase when compared to the same period in 2021....

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Mercedes Recalls Almost 1 Million Cars Over Faulty Brakes

German carmaker Mercedes-Benz is recalling almost 1m older vehicles from around the world because of potential problems with their braking system. Over the weekend, the...

Lagos Motor Fair: Coscharis Motors launches ‘Bronco’

Business2 years ago

Lagos Motor Fair: Coscharis Motors launches ‘Bronco’

Coscharis Motors has launched the all-new Bronco into the Nigerian market at the Lagos Motor Fair, to the amazement of all that were present at the...

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Musk Says He May Drop Twitter Deal If Fake-Account Data Not Provided

Elon Musk may walk away from his $44 billion deal to acquire Twitter Inc (TWTR.N) if the social media network fails to provide data on spam...

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EXCLUSIVE: Elon Musk Pause Hirings, to Cut 10% of Tesla Jobs

Tesla (TSLA.O) CEO Elon Musk has a “super bad feeling” about the economy and needs to cut about 10% of jobs at the electric carmaker, he...

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Banks tighten forex access as reserves hit 7-month low

Figures obtained from the Central Bank of Nigeria have revealed that the country’s external reserves hit a seven-month low after falling to $38.57bn on Monday. Findings...

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Rite Foods Marks Children’s Day with Sponsorship of Fun-filled Initiatives for Kids

As part of this year’s Children’s Day celebration, Rite Foods Limited, a market leader in Nigeria’s food and beverage sector, has sponsored lots of exciting activities...

Business2 years ago

Elon Musk’s Starlink licensed to operate in Nigeria

Elon Musk, the billionaire tech entrepreneur, has announced that his satellite Internet service, Starlink, has been granted approval to begin operations in Nigeria. Musk made this...

Business2 years ago

Mouka Donates Mattresses to Chess in Slums Africa to Support its Initiatives

Mouka, Nigeria’s market leader in the mattresses and beddings sector of the economy, has donated its quality mattresses to Chess in Slums, Africa, a non-profit organisation,...

Earth News

MAN tackles CBN over N1tn low-interest loan

Crude oil exports leap by 194%, hit N5.6tn in three months

Mercedes Recalls Almost 1 Million Cars Over Faulty Brakes

Lagos Motor Fair: Coscharis Motors launches ‘Bronco’

Musk Says He May Drop Twitter Deal If Fake-Account Data Not Provided

EXCLUSIVE: Elon Musk Pause Hirings, to Cut 10% of Tesla Jobs

Banks tighten forex access as reserves hit 7-month low

Rite Foods Marks Children’s Day with Sponsorship of Fun-filled Initiatives for Kids

Elon Musk’s Starlink licensed to operate in Nigeria

Mouka Donates Mattresses to Chess in Slums Africa to Support its Initiatives

Anambra Draws Attention To Media Reports Excluding The State From 70,000 Minimum Wage Paying States … Confirms Payment

Governor Soludo 2025 Budget to Strengthen Anambra Free Education Policy, Transforming Schools Digitally

Mr. Macaroni slams government over misplaced priorities

Edo Election: PDP alleges rigging as APC Okpebholo wins

FG must end petrol subsidy now — Dangote

Bigi Carbonated Soft Drink Treats 50 Lucky Consumers to a Movie Hangout at Ikeja City Mall

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