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Tag: Loan

  • APC, Makinde trade words over N7.6b loan

    The All Progressives Congress (APC) in Oyo State has berated Governor Oluseyi Makinde and the Speaker of the state assembly Hon. Adebo Ogundoyin over express approval of a fresh N7.6 billion loan aimed at reviving two farm settlements in Ido/Ibarapa East Federal Constituency of the state.

    The state House of Assembly had on Thursday, approved the governor’s request to borrow the sum three months after a similar request to obtain a N10b “infrastructural loan” was granted, bringing the total to N17.6b. The approval was granted amid opposing voices by legislators who wanted the loan to be applied to farm settlements across the state.

    The APC, In a statement by its Assistant Publicity Secretary, Prince Ayobami Adejumo, the party condemned what it described as the “conspiracy of bad governance” between Gov. Makinde and Speaker Ogundoyin over an alleged disrespect for the opinion of majority of his colleagues who had questioned the rationale behind the fresh loan request at the plenary on Thursday.

    It read in part: “The current governor has succeeded in bringing the whole machinery of local government administration to a halt completely and to further demonstrate his resolve to drag Oyo State backward by many years within the shortest period of time, we have again been made to see the need for the concerned citizens to beam their searchlight on the PDP administration of Engr. Seyi Makinde as financial indiscipline is now the order of the day in the business of government.

    “ As much as we would not even like to dwell much on the futile attempt by Gov. Makinde’s media handlers to change the narratives on the controversial fresh loan, the whole world has realized that the present administration is here to mismanage resources and enmesh the state in an inimical debt crisis. Without a clearcut action plan, the Makinde administration has made itself a good customer to many financial institutions as it gets all forms of loans. Unfortunately again, most of these loan transactions are done covertly and to the disadvantage of the good people of the state.

    “The latest N7.6 billion loan, as announced, by the state legislature was different from the N10 billion obtained three months ago even as tongues are already wagging on what has become of the whopping over N17b billion which came into the state government treasury in the month of June alone. Apart from the statutory payment of salaries to government workers, nothing concrete has been done by the PDP government since May 29, 2019.

    “The orchestrated Light-Up Ibadan City project and purchase of 100 security cars have not come to any fruition even when bogus amount of state funds had been expended on them without any due process. Oyo now has a governor who would always singlehandedly design capital projects and approve funds for their execution without any recourse to State Executive Council. As if this was not enough, he has found an ally in the Speaker who overrules his colleagues at will only to dance to the tune of Mr. Governor.

    “It is on record that no significant programme was put in place for the celebration of the Nation’s 59th Independence anniversary this year because the governor was nowhere to be found. Meanwhile, Gov. Makinde who has been ruling the state from unknown destinations in the past three weeks, got the Speaker to do a hatchet job on the fresh loan which was hinged on the revamping of two farm settlements which are closely located in the same federal constituency. We urge the state legislature to revisit the matter and act in the overall interest of the entire citizens of the state.” APC said.

    Reacting, however, Makinde described the loan approval as victory for the people of the state. He pointed out that the loan was in pursuit of agricultural sustainability and economic emancipation of the Makinde administration.

    In a statement through his spokesman Mr Taiwo Adisa, the governor, who described the decision of the state House of Assembly to grant immediate access to the loan facility, said the loan was borrowed from the Central Bank of Nigeria (CBN) for “agricultural equipment” by the immediate past administration of Governor Abiola Ajimobi.

    A statement signed by the Chief Press Secretary to the Governor, Mr. Taiwo Adisa, indicated that Governor Makinde had, in May 2019 when he was still governor-elect, moved to prevent the misappropriation of the funds by approaching the Oyo State High Court in Ibadan to get an injunction restraining the Ajimobi-led administration from accessing and spending the loan few days to the end of the tenure.

    Governor Makinde maintained that contrary to insinuations that he was obtaining an additional N7.6 billion loan after an initial approval for N10 billion loan facility for infrastructure development, the N7.6 billion loan had already been approved by the CBN before he got to office.

    He added that the apex bank had begun to deduct money from Oyo State’s Federation Account Allocation Committee (FAAC) allocations from source to repay the loan.

    The governor stated that his administration had only approached the House of Assembly to seek approval to change the purpose of the loan facility so that it could be put to better use in developing farm estates in Eruwa and Akufo farm settlements in the state in a pilot scheme that will be used as a model for the state-wide farm estate initiative of the administration.

    Makinde further explained that limiting the scope of the project to Akufo and Eruwa Farm Settlements, which were in the same federal constituency, was to allow for effective planning, monitoring, evaluation and coordination for the pilot scheme, adding that the project would extend to other settlements across the state, as his administration will remain fair to all zones in the state.

  • Access Bank partners Lagos State Government to launch N10billion loan portfolio for women

    Access Bank partners Lagos State Government to launch N10billion loan portfolio for women

    Africa’s largest retail bank, Access Bank Plc., yesterday collaborated with the Lagos State Employment Trust Fund (LSETF) to launch the LSETF W Initiative aimed at economically empowering women in Lagos State.

    The initiative, which has a total loan portfolio of N10billion, is targeted at women-owned businesses (with at least 50% ownership share) in operation for 1-5 years.

    While delivering his address, Access Bank Group Managing Director, Herbert Wigwe said: “Access Bank is fully committed to bridging the existing gap and provide women with the support they need to successfully implement their business ideas”.

    “Looking at the number of women present here today, I don’t think the initial N4billion we set aside to help women will be sufficient and based on that, the initiative fund will be increased to N10billion. Through partnerships with organisations such as LSETF, Access Bank will continue to help women break boundaries, reinvent the status-quo and take advantage of opportunities provided by technology and quality financial systems to make significant impact on the economy of Lagos State and Nigeria as a whole,” Wigwe added.

    Delivering his keynote address, the Lagos State Governor, Babajide Sanwo-Olu expressed his delight at the timeliness of the initiative, including its immense opportunities for residents in the state.

    “The LSETF W Initiative has come at a very critical time for our economy, as we believe that women have a great role to play towards achieving the developmental results that we seek in our state,” said Sanwo-Olu.

    “It is important to leverage on the accumulation of resources built through relationships, trust, goodwill, and influence between the State and other private sector stakeholders to make things happen quickly. We are very proud of Access Bank as they continue to make available their financial and business expertise as well as their funds towards ensuring that our women are given adequate access to resources that will aid their successes,” he added.

    Access Bank has a long history of supporting female empowerment, offering over 8,000 personal loans valued at over N10.6billion since 2018, with over 330 loans given to women in business valued at over N16.6billion.

  • Kuwait approves $2bn loans for African countries

    Kuwait approves $2bn loans for African countries

    The Ambassador of the State of Kuwait to Nigeria, Abdulaziz Albisher, has said that the Emir of Kuwait has approved $2 billion as grants and concessionary loans to African countries.

    He said the loans, reserved for investment and development, will be spread over five years.

    Besides, the envoy said that Kuwait has initiated another Annual Prize of $1 million for researches and research projects on agriculture, health and Ebola eradication.

    Mr. Albisher, who made the disclosures at a pre-58th National Day interaction with select media in Abuja, urged African nations to take advantage of the loan facility.

    He said: “Kuwait has always had Africa at heart, that need not to be underlined, for it fashioned numerous contributions and initiatives meant to enhance Africa’s development. The presence of my government`s developmental efforts is well recognised.

    “Let me first of all throw the light on the Arab-African Summit held in Kuwait during which His Highness, the Emir of the State of Kuwait gave his directive to the Kuwaiti Fund for Arab Economic Development to facilitate grants and concessionary loans to African countries to the tune of $2 billion reserved for investment and development spread over five years.

    “It (the $2 billion) is meant to support the efforts of the African countries towards realising their developmental aspiration in various fields, particularly infrastructure. As this initiative is to be executed through the Kuwait Fund it goes through legal procedures.

    “In line with the interest of His Highness on Africa, he attended the 19th African Union Summit held in Ethiopia as guest of honors where he offered to well equip the then newly build African Union secretariat.

    “The same summit witnessed granting the State of Kuwait membership to the African Union in the capacity of an observer.”

    Albisher also informed that Kuwait has set aside another $1 million annually for researches in agriculture, health interventions and Ebola eradication, among others.

    He added: “Let me also make mention that the Emir of the state of Kuwait has also announced the intention of his country to grant an Annual Prize of one $1 million U.S. in the memory of late Dr. Abdulrahman Al-Sumit.

    “This prize is meant for development researches and research projects in agriculture, health and Ebola eradication. This prize is under the auspices of Kuwait Scientific Institution and the theme for the 2019 prize is food security.”

    On his assessment of Nigeria, Albisher said it has the potentials of emerging as one of the best economies in the world.

    He said: “Nigeria in my opinion is the giant of Africa, with huge potential that made it a pioneer in regional, continental and international scenes; it has already assumed remarkable roles by maintaining peace and stability through financial and human sacrifices.

    “As for the Nigerians they are indeed hospitable and friendly. In fact we share a lot in terms of culture and cherished values.

    “Nigeria is a very special country endowed with numerous resources that will undoubtedly enable it to be one of the top world economies in the near future, its cultural heritage is exceptional, the roles played by its successive governments and the current able government in particular on the regional continental and world levels maintaining peace and security are very much appreciated.”

  • Loan saga: Court enters $16.4m judgment against Stella Oduah

    A Federal High Court sitting in Lagos south west Nigeria has entered judgement in favour of Sterling Bank Plc jointly and severally against the former aviation minister Senator Stella Oduah and her company Sea Petroleum and Gas Limited in the sum of $16,412,819.06 and N100,493,225.59 respectively.

    The sum being the outstanding debt owed by the Sea Petroleum and Gas Company and duly guaranteed by Senator Stella Oduah as at November 2016 to the bank with accrued interest.

    The Presiding Judge, Justice Ayotunde Faji in his judgment while granting six reliefs out of the 14 sought by the bank, issued order of attachment in favour of the bank against such entire assets of Sea Petroleum and Gas company, cash in bank, bond, deposit, real estate, stocks, all forms of negotiable instruments in all stock broking firms, discount houses, mortgage institutions, financial houses, microfinance houses, and all licensed banks within Nigeria having Sea Petroleum as beneficial owner funds to the full extent of the unsatisfied portion of the sum of $16,,412,819.06 and N100,493,225.59 respectively as at November 2016 and other accrued interest.

    The court also declared that having regard to the clear and unambiguous provisions of the deed of guarantee and indemnity personally executed by Senator Stella Oduah in favour of Sterling Bank over facility advanced to the Sea Petroleum and Gas company Limited who has failed upon demands to liquidate same, judgment can be granted against Senator Stella Oduah for the unsatisfied portion of the sum owed by Sea Petroleum and Gas company to the bank.

    The judgment of the court was sequel to a debt recovery suit filed before the court by a Lagos lawyer Barrister Oluwakemi Balogun SAN on behalf of Sterling bank Plc.

    In an affidavit sworn to by business manager, Maritime of Sterling bank Plc Mr Segun Akinsanya,with 34 exhibits attached filed and argued before the court by Mr Balogun (SAN), Mr Akinsanya in the said affidavit averred that on October 8, 2012, the bank granted a lease/cabotage vessel finance facility to Sea Petroleum and Gas Company in the sum of $10,069,620.25 to finance one unit 5,000 MT tanker vessel.

    The loan was secured by unconditional personal guarantee of the company director, Princess Stella Oduah supported by statement of her net worth, legal mortgage of two properties worth N135 million, power of Attorneys of the tanker vessel in favour of Sterling Bank and fully executed irrevocable standing payment order and tripatite remmitance agreement between First Bank Plc, Sterling Bank and Stella Oduah.

    It was further averred that between June 27, 2013 Sea petroleum Company requested for and was granted additional facilities in the sum of $449,600.00 for post delivery expenses, $642,954.00 and $350,000 to meet the requisite conditions in securing the release of the tanker.

    Upon the persistent failure of the defendants to liquidate their indebtedness Sterling Bank instructed the law firm of Oluwakemi Balogun to recover the debt.

    Despite several reminders, demands, pleas and persuasions emanating from the bank and its solicitor, the defendants failed and refused to liquidate their indebtedness which has culminated in the sum of $16,412,819.06 and N100,493,225.59 as at November 2016.

    Consequently, the bank urged the court to enter judgment in its favour as per its claim.

    However, in her counter affidavit, Senator Stella Oduah, contended that, the vessel purchased with the loan facility was registered in the name of Sterling Bank until the defendant discharges the facility.

    The bank was to appoint technical managers for the vessel to ensure it is in good condition. The managers appointed by the bank mismanaged the vessel resulting in several losses to the defendants. The bank ignored all pleas for the managers to be changed. The company Sea Petroleum and Gas limited could therefore not meet up with its financial obligations.

    The non payment of the loan was thus occasioned by the bank’s inaction and it would be unjust to impose on the company the liability occasioned by the bank’s inaction. The bank still retained the vessel since ownership was in the bank. The bank would have expected to sell the vessel but failed to do so in spite of the company’s consent to the sale. The bank is not also seeking a sale of the vessel in this suit.

    Consequently the impossibility of performance is a defence to claim for specific performance. Where a plaintiff defaults in his obligation under an agreement he cannot succeed in an action for specific performance.

    The court was then urged to refuse the claim of the bank. The bank was expected to sell the properties pledged, title documents which are in the bank’s custody. It is only after then that it will be clear who is indebted to who. Thereafter the company’s liability can be determined and Senator Stella Oduah’s liability arise.

    In his judgement, Justice Faji said, “The defendant by letter dated 6/2/15 acknowledged it’s indebtedness. This is part of Plaintiff’s case to show that the debt is not disputed. The defendant did not comply with the repayment under the various facilities. The Sea Petroleum and Gas Limited statement of account for the period 1/9/12 to 24/11/16 shows a debt balance of $16,412,819.06 and Naira debit balance of N100,493225.59.

    As regards Sea Petroleum therefore, it is clear that the company was all material times indebted to Sterling Bank, Stella Oduah guaranteed the indebtedness and issue a guarantee and indemnity. The bank was to have a lien upon the immediate right of set-off against Stella Oduah whether on any current, deposit, domiciliary, or other accounts and assets.

    ”I do not see any defence to this claim by Sea Petroleum and Gas company, As regards Stella Oduah, having guaranteed the loan and given an indemnity, she is equally liable with the company to pay the debt. I grant reliefs 1-6 in so far as they relate to the assets of Senator Stella Oduah and Sea Petrol and Gas company Limited within Nigeria.

  • 36 states, FCT to access World Bank’s $750m loan, grant soon – FG

    The Federal Government has disclosed that 36 state governments and the Federal Capital Territory, FCT, will soon access World Bank’s $750 million loan and grant facility.

    This was made known by the Minister of Finance, Zainab Shamsuna Ahmed, while addressing the 7th Community of Practice (CoP) made up of State Commissioners of Planning and Budgeting, in Abuja, with theme, ‘Achieving Realism in State and Federal Budgets for Effective Service Delivery’, as contained in a statement signed by the Special Adviser to the Minister of Finance on Media and Communications, Paul Ella Abechi.

    Ahmed, who was the founder of CoP in September 2016, as then Minister of State for Budget and National Planning was invited to speak on issues concerning the CoP, where she expressed optimism that states will continue with their fiscal responsibility which will serve as platform to access the loan and grant from the World Bank.

    The Community of Practice meetings enhance the State Commissioners of Planning and Budget’s capabilities in performing their functions, and serve as platforms for facilitating peer learning and information exchange, strengthening coordination, collaboration and networking.

    Issues being discussed at the 7th CoP meeting include expanding the forum beyond the current membership to include the Minister of Finance and Commissioners of Finance from States for better coordination of planning, budget and public finances.

    She said: “During the course of these meetings we had the benefit of hosting the World Bank and several other opportunities including the Governors’ Forum. During the course of this exercise, the Ministry of Finance had to on instruction from the President provide bailouts to the state because at one point states were not able to pay salaries.

    “Part of the conditions that was given for those bailouts is a fiscal responsibility plan which needed to be implemented for the state to continue to be qualified to access the funds that the Federal Government was giving.

    “This FSP was quite successful because as a result of that we saw improvements in the public financial management in a lot of states, some of which is evident in the increase in the IGR and also the increase in the frequency of the preparation of financial statement in the availability of budget that used to never been found anywhere.

    “This year, it was so good that the World Bank said this group has done well and therefore we are going to give $750million in the form of concession loans and grant which will be available soon for the states to access.

    “We are in the process of going to the Federal Executive Council (FEC) to get the approval; the World Bank on its own has already approved this and others. So we hope that you will continue to implement your fiscal responsibility so that you will qualify for this facility as well as the grant.

    “And those principles agreed by NEC are still as relevant today as they were in 2016. So I want to urge the CoP to ensure that the monitoring aspect of this is still continuing in one way or the other.”

    She also charged the CoP to make monitoring of the process of implementation of budget as cardinal, because it would benefit and enhance what they are doing to improve the standard of living of the people in their states.

    “Let me add that the need for monitoring is beneficial because it will enhance process improvement, it will also help us to refocus ourselves as well as our principles to stay on those commitments that are made, but most importantly it will enhance public service delivery to the citizens”, she stated.

  • Senate bows to Melaye, Aidoko’s request, probes Kogi govt’s $500m foreign loan

    The Senate on Wednesday asked its Committee on Local and Foreign Loans to investigate alleged plan by the Kogi State government to take a $500 million foreign loan.

    The loan plan, it was learnt, is without recourse to the National Assembly, which is empowered by law to approve such loan.

    Two Kogi State senators – Atai Aidoko (Kogi East) and Dino Melaye (Kogi West) – who drew the attention of their colleagues to the loan plan, urged them to stop the state from taking the loan in the interest of the residents.

    Melaye, in a motion, raised the alarm that the approval for the $500 million had been given by the Ministry of Finance in contravention of the law.

    He prayed the Senate not to allow the alleged approval to stand.

    The senator alleged that most Kogi residents were convinced that the state government would spend the loan to prosecute next year’s general elections.

    Melaye also claimed that the state government did not involve the House of Assembly in the plan to obtain the loan.

    He said: “The Kogi State government has approached East West Capital Corporation, based in the United Arab Emirates (UAE), to get a loan of $500 million. That is about N186 billion. Already, the state government has borrowed about N40 billion since it came on board in 2016.

    “The law clearly states that any foreign loan must be approved by the National Assembly. That was not done. But I am aware that the Minister of Finance has already given the approval. The Senate cannot sit back and allow this illegality to stand. The Senate needs to stop this.”

    Aidoko seconded the motion.

    The Kogi East senator regretted that due to alleged mismanagement of resources in the state, Deputy Governor Simon Achuba had not been collecting salary for months.

    He added that the government had not paid any allowance to the deputy governor in the last one year.

    According to him, electricity supply to the official residence of the deputy governor has been disconnected by the Abuja Electricity Distribution Company (AEDC) due to unpaid charges.

    Aidoko who represents the deputy governor in the Senate also told his colleagues that the House of Assembly had adjourned sine die following the failure of the state government to pay the salaries and allowances of the lawmakers.

    The senator said Kogi civil servants had not been paid in the last one year, same with judicial officers.

    To worsen the situation, Aidoko said judicial officers were planning to go on strike due to the failure of the state government to pay their salaries and allowances.

    He noted that despite huge funds received by the state government, it had borrowed over N40 billion since the Yahaya Bello administration came on board in January, 2016.

    Aidoko said approving such a loan would create more problems for the state and its people.

    Senate President Bukola Saraki ruled that a standing committee on Local and Foreign Loans was in a better position to handle the matter.

    He referred the matter to the Committee on Local and Foreign Debts to, among others, ascertain the veracity of the claims by Melaye and Aidoko.

    The Senate President mandated the Shehu Sani-led committee to turn in its report within 48 hours to enable the Senate take a position on the matter.

     

  • Bayelsa obtains $1mn World Bank/EU loan

    The Bayelsa State Government on Wednesday commenced the deployment of one million dollars bilateral loan it obtained from the World Bank and European Union (EU).

    Projects selected for implementation from the loan are scheduled to be completed in two years.

    Figures from Debt Management Office put Bayelsa’s external debt as at June 20018 at 47.756 million dollars, while the domestic debt stood at N123 billion.

    The World Bank and EU facility would be administered under the State Employment and Expenditure for Results (SEEFOR) Project to provide 6,000 jobs for youth empowerment.

    Mr Parminder Brar, the World Bank Task Team Leader (TTL) for the SEEFOR in Nigeria, disclosed this in his remarks at the opening ceremony of the SEEFOR Project Implementation Support Mission (ISM) in Yenagoa.

    He said that during the first 12 months of the two years, 40 new projects would be started and crafts, technical and vocational training centres in the state would receive support under the SEEFOR project.

    Brar also said the overall allocation for the SEEFOR project was 480 million dollars of which 65 per cent was from the World Bank and 35 per cent from the EU, adding that the allocation for Bayelsa was 55 million dollars.

    Delivering a keynote speech at the event, Retired Rear Adm. Gboribiogha Jonah, the Bayelsa Deputy Governor, decried Nigeria’s slow approach to tackling its development challenges.

    Gboribiogha said that the approach was especially slow in terms of improving life expectancy, literacy rate, access to water and roads, among others, when compared to its neighbours.

    He said that some state governments focused on developing the urban areas while the rural areas received little or no attention, noting Bayelsa had keyed into the SEEFOR project to change the narrative in the rural areas.

    Jonah commended the SEEFOR project for not only providing more than 10,000 jobs for the teeming youths in the state in the previous phases, but also for constructing roads for farmers to evacuate their farm produce.

    He emphasised that the successful execution of SEEFOR projects would attract more projects to the state.

    Jonah also said that the greatest challenge facing Small and Medium Scale Enterprises (SMEs) in the country was lack of access to funds that would attract minimal interest, enough time to execute projects as well as pay back loans.

    The deputy governor, who called on the participating states of Edo, Delta, Rivers and Bayelsa to have equal SEEFOR assessment, participation and benefit, enjoined them to take the peer-review sessions seriously, especially in the area of public financial management.

    Joshua Ongore, the state Commissioner for Budget and Economic Planning, said that the objectives of the SEEFOR project were in line with the development agenda of Gov. Seriake Dickson-led administration.

    He said that the Bayelsa Government prioritised youth empowerment through training, entrepreneurship and employment.

    He described the scheme as an innovation that would open opportunity for peer-learning across the states, stressing that the SEEFOR project was active and responding to the challenges of innovative and better ways of doing things.

     

  • Fayemi signs Executive Order to stop education taxes, approves N200m loan for teachers

    The Ekiti State Governor, Dr. Kayode Fayemi, has signed an Executive Order banning various fees collected by some principals, headteachers and other school officials.
     
    He also approved N200m as car and housing loans for teachers in public schools in the state to boost their morale.
     
    The governor disclosed that the loans would be disbursed on or before November 15 adding that payment of arrears of salaries owed by the last administration would commence any moment from now.
     
    Speaking on Wednesday after signing the order Fayemi said it provided for free and compulsory education in government primary and secondary schools.
     
    The executive order, according to him, imposed stiffer sanctions and penalties for school principals and headteachers extorting pupils by collecting illegal fees.
     
    The governor stated that he signed the executive order because of reports that school heads were still collecting illegal fees after his proclamation last week banning education taxes.
     
    He added that some principals and headteachers were still extorting students under the pretext of collecting “voluntary donations.”
     
    Fayemi stressed that the executive order would prevent such illegality in schools, eliminate school dropouts and as well as encourage children enrollment.
     
    He urged parents to report any head of schools who asked their children for money to the Ministry of Education for necessary action.

  • Chelsea striker Michy Batshuayi joins Valencia on a season-long loan

    Chelsea striker Michy Batshuayi joins Valencia on a season-long loan

    Chelsea striker Michy Batshuayi has joined Spanish club Valencia on a season-long loan.

    The 24-year-old Belgium international spent part of last season on loan at German club Borussia Dortmund, scoring nine times in 14 appearances.

    Batshuayi joined Chelsea in July 2016 for a fee in the region of £33m and has scored 19 times in 53 games.

    His departure will leave Alvaro Morata, Olivier Giroud and Tammy Abraham as Chelsea’s recognised strikers.

    Batshuayi made three appearances for Belgium at the World Cup in Russia this summer, scoring after coming off the bench in the 5-2 group-stage victory over Tunisia.

    Chelsea also announced on Friday that 23-year-old French defender Kurt Zouma will spend the season on loan at Everton.

  • Promasidor secures N5.6b BoI loan for expansion

    Promasidor Nigeria Limited (PNL), has secured a N5.6 billion credit from the Bank of Industry (BoI) to support its aggressive expansion programmes.

    PNL Finance Director, Mr Per Kristensen, said the facility would be used for additional machinery, factory expansion and value chain development, which would create jobs for Nigerians and increase the company’s capacity to support the country’s economy.

    Disclosing this in Lagos, Mr Kristensen said repayment of the loan was structured over a seven-year tenure, including a 12-month moratorium. He added that the facility was a vote of confidence on the company’s untainted financial integrity, high credit rating and exceptional corporate governance practice.

    “The near single digit interest loan is guaranteed by First City Monument Bank Limited. You cannot compare this with any other commercial loans in the country. What this means is that Promasidor has the needed funds to pursue its growth in machinery, backward integration, production plants and create more jobs,” he said.

    “The loan comes with comfort because it is denominated in local currency. For the period of seven years, the only risk is the interest rate, which is minimal. We are going to repay in Naira and the process is very transparent. We are excited about the development. It will give us additional opportunity to contribute to the growth of the country’s economy.

    “The business is expanding and we need a lot of capital to support that. The injection of the BoI facility gives the management the needed stability and relief to continue to pursue the expansion plans. A lot of expansion activities are ongoing at the factory, and we will continue to see more of that in the next 24 months,” he added.

    Head of Legal and Corporate Communications at Promasidor, Mr Andrew Enahoro, said the company and BoI had shared passion and interest in supporting job creation and the economic growth of the country.

    He pointed out that, “BoI’s interest is to support business expansion, stimulate jobs and create social values. These are fundamental to BoI’s support for any organisation. Promasidor, on its part, has plans to expand its different plants and develop other exciting products. These will create jobs.

    “If we employ additional 500 people as a result of the credit, it is just the beginning of the impact it will create,” he added.

    He added that the company would have to look at other multiplier effects of its spending and that of the employees that would come on board on the economy as well as other indirect jobs that would be created.

    “Nigeria’s economy will gain. We should not forget that lower interest rate translates to lower cost of production, higher profits and more taxes. Essentially, both Nigerians and the national economy will benefit immensely from this partnership.

    “BoI is ready to work with us to grow the economy because it has confidence in our processes and corporate governance culture,” Mr Enahoro further said.