In line with the Federal Government’s new automotive policy, the Bank of Industry, in partnership with the National Automotive Council, has embarked on the establishment of six prototype mechatronics centres.
Acting Managing Director, BOI, Mr. Waheed Olagunju, stated this at a seminar organised by the financial services group of the Lagos Chamber of Commerce and Industry, held in Lagos on Thursday.
Olagunju, who spoke on ‘Intervention funds: The journey so far,’ was represented by the Assistant General Manager, Mr. Joseph Okechukwu.
He said the centres, which have been equipped by NAC from the NAC-AD Fund, was aimed at capacity building of auto-technicians and improving the skills of auto technicians in handling modern diagnostic equipment to carry out routine servicing and maintenance of new generation vehicles.
He said, “The centres are Lagos State Polytechnic, Ikorodu; Rivers State Polytechnic, Bori; Kaduna State Polytechnic, Kaduna; Metallurgical Training Institute, Onitsha; Federal College of Education, Gombe and Federal Science and Technical College, Orozo, Abuja.
“Collaboration is also in place with reputable microfinance banks for on-lending to auto technicians to enable them acquire simple modern tools while a portion of the loan is being deployed through other financial institutions for procurement of locally assembled vehicles.”
According to him, the NAC facility is currently being provided at 7.50 per cent interest rate for term loan and 10 per cent for working capital loan.
On the Cotton, Textile and Garment Fund, meant for resuscitating existing CTG projects, Olagunju said N51.326bn has been disbursed to sixty projects since the inception of the scheme.
He added that as of December 31, 2013, 77 applications amounting to N58.603bn have been approved.
He, however, said the manufacturing and Small and Medium Enterprises sector were still plaqued by heavy debt, especially to commercial banks due to high cost of fund in the acquisition of operating assets.
According to him, there also is less than 30 per cent industrial capacity utilisation resulting from lack of power supply, while dependence on high import with the associated foreign exchange risk remains a major challenge resulting in the inability to compete in the global market place.
The President, LCCI, Alhaji Remi Bello, explained the seminar was aimed at providing a platform for BOI, and other stakeholders to meet with the business community to share briefs on the various intervention funds.
He said the major concern has been how to improve access to the various intervention funds established to cater for certain categories of business.
“The intervention funds have become necessary in the face of poor access to finance and high cost of credit from the conventional lending institutions in Nigeria. This seminar will also serve as an enlightenment forum to let businesses and operators fully aware of terms and conditions of accessing the special funds,” he said.
The Chairperson, LCCI Financial Group, Mrs. Olajumoke Fashanu, stated that in every developing economy, such as Nigeria, the financial services sector is confronted with various challenges.
She said, “As part of its contributions towards the development of this sector, interactive sessions such as this are organised by our group to give participants from diverse corporate lineage an opportunity to express their views on topical issues and proffer solutions to challenges and problems that may confront them in the course of their business operations.
“We appreciate the fact that just as the nation is maturing politically; the financial services and other sectors are also maturing with the passage of time.”
