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BANKS SHOULD RELAX COLLATERAL CONDITIONS - NACCIMA

By NBF News
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Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, has called on commercial banks in the country to relax their stringent conditions for collaterals from private sector applicants for their facilities to enhance the growth of businesses.

National President of NACCIMA, Dr. Ademola  Ajayi, made the call during an interactive forum organised by NACCIMA with Nigerian Export-Import  Bank,NEXIM and Ecobank on financing Export and Import and Regional Solution for customers trading in West Africa.

He enjoined   Ecobank and other commercial banks to relax their stringent demands for collaterals from private sector.

The NACCIMA helmsman also called on NEXIM to double its efforts in the provision of services on funds in the Export and Import promotion, to reposition the non-oil export sector of the economy.

Ajayi said the forum was held to demonstrate the commitment of the private sector to ensure that they have necessary ingredients required to make businesses thrive better in Nigeria.

Ifeanyi Nwade, Asst General Manager/ Head, Project Finance NEXIM, disclosed that the bank had disbursed a total of N28.84 billion to finance non-oil exports in the last seven years between  2005 and 2011.

'Annual statistical data of NEXIM bank's intervention funds in the export sector for the period covering January 1, 2010 to October 31, 2011, showed it disbursed N28.84 billion during the stated period,' he said.

In a paper presented, 'The Role of NEXIM Bank in (non-oil) export Development in Nigeria', Nwade, noted that N1.79 billion was disbursed in 2005, N5.66 billion in 2006; N6.20 billion in 2007 and N2.90 billion in 2008 in that order.

He maintained that the bank further gave out N2.27 billion (2009), N3.67billion (2010) and N6.35 billion in 2011. He also noted that the bank understands that trade facilitation is actualised through simplification and harmonisation, as well as time and cost reduction of transactions.

Similarly, Ecobank Head of Regional Business, Nigeria, Mr. Daromosu Ganiyu; who spoke on 'The Challenges of Doing Business in West Africa:- Ecobank Solution', said: ' to us the major challenges are : Payment  and collection, regulatory framework, protocol  and policies including documentation  requirement; artificial barriers in terms of cost of doing business -check points  and taxes ; logistic  and infrastructural challenges, credit facilities as well as market accessibility.'