Credit managers implore Buhari to build stronger economy

Published

9 years ago

April 3, 2015

Following the announcement of General Muhammadu Buhari of All Progressive Congress(APC) as the winner of the recent presidential election, credit managers, under the auspices of the Institute of Credit Administrators of Nigeria (ICA) have called on Buhari to build a stronger economy through credit instrument.

The credit managers, in a statement made available to Newswatch Times yesterday, noted that the president-elect must deliver on his promise, adding that the development of the country was a crucial step to building a credit- based economy.

The statement quoted the Registrar, ICA, Professor Chris Onalo as saying, credit administrators believe Buhari has the requisite discipline to lead the country into the next regime of strong economic prosperity, social justice and freedom.

When he assume office, Onalo implored him to build a strong economy for the future, adding that Buhari must focus very quickly on structural reforms, fiscal responsibility and investment. Moreover, he appealed to the new president-elect to cut cost of doing business in Nigeria, stating that this would quickly gain him local and global acceptance.

Stating that it is possible to fix electricity within six months, he called on Buhari to prioritise nationwide road construction.

According to him, “He need to set up as a matter of urgency, a national agency that guarantees access to loans by Small and Medium Enterprises (SMEs) and not to disburse loan to them.”

Such agency, he pointed out, can be called the Nigerian Credit Guarantee Corporation (NCGC). “Surprisingly, up till today, Nigerian government is still not dreaming of creating this national platform that would support the development of SMEs,” he said.

If a National Credit Guarantee Corporation is set up by the federal government with strong capital base and very robust operating fund,he noted that the corporation would serve as collateral and security for people, that is, the SMEs who want to borrow money for business growth.

Saying the policy thrust of the president-elect should be economic growth revival and massive infrastructural build ups to help boost economic growth, he added that there was the need to stream down the functions of the Central Bank of Nigeria (CBN) to make it more functional and efficient with its traditional monetary policy moderation mandate.

Nigeria, according to Onalo, must engage free market economy in order to achieve overall resilience in economic activity, employment and fiscal performance.

To him, abundance of credit availability in monetary and trade terms to fuel exports of made in Nigeria goods must become the major driver of Buhari’s economic reform agenda.

Oil, he stressed, must be de-emphasized, while agriculture must become a major backbone of the nation’s economic growth. While calling for overhaul of the educational system to produce best brains for labour market, he charged Buhari to work largely with best brain professionals.

The well-functioning of credit in any economy, he said,, is a pre-condition for enterprise and trade to develop and thrive.

The granting and state of credit in any economy, according to the Registrar, has important implications for both financial stability and private sector sustainability. As Nigeria’s economy is still susceptible to external shocks, the well-functioning of credit is crucial for our economy to grow, he stated.

He stressed that the poor attitude to credit, especially to public loans provided by government’s development finance institutions, and lack of a robust regulatory regime for the DFI sector to operate is a fundamental threat to the health of the Nigerian economy. “Your government is expected to be committed to enhancing the regulatory regime; your government is expected to enhance credit regulations by providing greater protection for the country’s DFIs,” he pointed out.

In granting of credit, he said both parties to the transaction need to be guided by a sense of values and ethics in their business dealings. “The present situation of credit lax in Nigeria has evidenced the gaping hole that should be occupied by values. Integrity and honesty which yourself (Buhari) represents need to be the guiding principles in all business decisions in Nigeria. It is this responsibility towards the other party that will determine the well-functioning of credit in our economy,” he emphasised.

Newswatch Times

Related Topics:General Muhammadu Buhari Institute of Credit Administrators of Nigeria

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WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

Published

5 years ago

April 13, 2019

Maritime First

…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development.

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity.

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years.

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further.

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA.

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers.

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being.

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained.

Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

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6 years ago

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Maritime First

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Wind Farm Vessel Collision Leaves 15 Injured

Published

6 years ago

February 20, 2019

Maritime First

…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg.

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt.

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital.

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News