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Cassava Association Condemns BoI Loan Recovery Tactics

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Cassava Farm in Nigeria
  • Cassava Association Condemns BoI Loan Recovery Tactics

Members of the National Cassava Processors and Marketers Association (NCAPMA) have condemned the methods used by officials of the Bank of Industry (BoI), in a bid to recover facilities extended to them in respect of the federal government’s Cassava Bread Policy.

The facilities, which the officials of BoI seek to recover, were extended to members of the association by the Federal Ministry of Agriculture and it is being administered by the Bank.

When the issue of default came up, the association wrote to the Managing Director of the Bank on July 27, last year to request status report on the level of indebtedness of members.

The association’s letter of July, titled the “Status Report on BoI Facilities with NCAPMA Members”, referred to a meeting both parties held with the Minister of Agriculture and Rural Development, Chief Audu Ogbe in Abuja on Friday 2nd of July, 2016, during which it requested that the BoI should provide details reports on the following: The status report on the upgraded term loan/grants and the status report on the working capital loan disbursed to its members.

“We shall appreciate timely response to these requests as this shall form the basis (time) for a planned national meeting of the association,” said NCAPMA in the letter.

However, the association said, in another letter last month to the Managing Director of BoI that the Bank did not respond to the letter, saying “your field officers have continued to put severe pressures on our members to liquidate the facilities provided by the Federal Ministry of Agriculture and Natural Resources but being managed by your Bank.”

The association in the letter signed by its Chairman, Engineer Ayo Olubori told the bank’s MD: “We are shocked to learn that your field officers are goading our members to source funds from other creditors at an extremely high interest rate to service the non-performing facilities under this scheme, an action that will further compound the already precarious financial situations of our members.”

According to them, “There are also reports that our members are being pressurised to issue post-dated cheques and coaxed to sign blank CAC forms 8 without discussing details of what your bank will fill in the form as particulars of mortgage. “We see these developments as unprofessional. In our opinion, we consider the activities of your field officers as an attempt to ridicule and undermine the determination and efforts of the Honourable Minister, together with that of all other stakeholders in confronting the problems associated with the implementation of this Cassava Bread Policy and proffering a holistic and sustainable approach for the way forward. We are at loss to understand why your bank, a Federal Government Agency, will not join hands with others to find a solution to this national dilemma.

“In consideration of the foregoing, we request your bank and officials to stay actions on the contents of letters sent to our members pending the outcome of a proposed meeting involving the Federal Ministry of Agriculture and Natural Resources, NCAMPA and BOI where all issues are to be discussed and ironed out on mutually beneficial terms.”

Regardless, the association stated that “the Bank of Industry (BOI) never responded or replied any of the letters dated 27th July, 2016 and 5th September, 2017 written to them.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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