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Banks unwilling to give industrialists loans – MAN

Banks unwilling to give industrialists loans – MAN

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Success Nwogu, Ilorin

The Chairman, Manufacturers Association, Kwara and Kogi states branch, Alhaji Kamorudeen Yusuf, has said that many banks in the country have not demonstrated enough commitment to financing industrialisation.

He stated that though loans were said to be available in banks, they were only available on paper and not in reality for industrialists.

Yusuf, who was represented by the Deputy Managing Director, KAM Industries Limited, Mr. Bola Awojobi, spoke on Friday during the MAN chapter’s seminar entitled, ‘Deriving the full benefits of loan facilities in the banking industry, the dilemma of bottlenecks and bureaucracy’, in Ilorin.

He stated that manufacturing activities were essential for national growth and development, adding that industrialists must overcome all stumbling blocks against industrialisation.

Yusuf 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, however, 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.”

The Kwara State Manager, Bank of Industry, Mr. Olusegun Adekogbe, stated that the lender was desirous and committed to assisting industrialists and micro, small and medium enterprises to grow.

He stated that the BoI must be convinced of the genuineness and profitability of the business and the ability to repay loans before fund providers could grant credit facilities.

According to him, the BoI now handles with dispatch applications for credit facilities and that some credit applicants do not meet the necessary requirements for such loans to be granted.

A lecturer at the Kwara State University, Dr. Aderemi Medupin, urged manufacturers to preserve in their efforts to industrialise the country and provide employment and wealth generation opportunities to people.

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