Banks demand more collateral as loan defaults rise
Banks are demanding more collateral from firms seeking loans as default rates have worsened, a new report from the Central Bank of Nigeria has revealed.
The Credit Conditions Survey Report for the fourth quarter 2016 said the overall availability of credit to the corporate sector increased in the quarter and was expected to further increase in the first quarter of 2017.
It said the major factors contributing to the increase in credit availability were changing sector specific risk, brighter economic outlook, favourable liquidity conditions and tight wholesale funding conditions.
According to the report, availability of credit increased for the large Private Non-Financial Corporations and other financial corporations in the fourth quarter but decreased for the small businesses and the medium PNFCs, and the same trend is expected in the next quarter.
First Bank extends women initiative to Akwa-Ibom, Benue
First Bank of Nigeria Limited has extended its women-focused initiative, FirstGem, to Akwa-Ibom and Benue states.
The lender noted in a statement that FirstGem was launched in Lagos in October 2016 to provide enabling opportunities for women to achieve their financial goals and aspirations.
It said with the initiative, female customers could access support funds for their total financial empowerment, free business advisory, specialised training in business development initiatives, regular information and insight on business opportunities in various sectors and industries.
Other benefits include discounts at merchant outlets that offer lifestyle products and services, according to the bank.
FirstBank expressed the commitment to take the initiative to all the geo-political regions of Nigeria, sensitising women to leverage the FirstGem offering to achieve sustainable economic growth and contribute to national development.
UNIDO begins enterprise development scheme in Nigeria
The United Nations Industrial Development Organisation’s Investment and Technology Promotion Office has commenced the Enterprise Development and Investment Promotion programme in Nigeria.
The programme, which was set rolling with the first train-the-trainers workshop in Lagos on Tuesday, was designed to develop capacity and foster enterprise and investment promotion through the development of first-rate business incubation management and counselling systems.
One of the facilitators at the workshop, Mr. Afif Barhonmi, said that with the right regulatory incentive framework and frame of mind by entrepreneurs, the Nigerian economy could take a step forward in merging the goals of entrepreneurship development, youth empowerment/engagement, continuous economic diversification, industrial upgrading and technological innovation, to make the nation a more competitive brand in the African continent and the world at large.
FCMB disburses N3.6bn CBN support fund to MSME
First City Monument Bank Limited has given out over N3.6bn to small businesses and women entrepreneurs from the Central Bank of Nigeria’s N220bn support for Micro, Small and Medium Enterprises.
The bank, which is the flagship of FCMB Group Plc, in a statement on Tuesday, said it had been on the lead among other banks as far as the MSME financing was concerned.
To this end, the bank was said to have been recently named as the Best African Small and Medium Enterprises Development Bank of the Year by the African Association of Small and Medium Enterprises.
The pronouncement was made at the second edition of African International Small and Medium Enterprises Economic Summit and Award 2016, which was held in Aba, Abia State.
The AASME is a coalition of micro, small, medium businesses, associations, operators, owners and individual manufacturers within Nigeria, extended into other African countries but headquartered in Aba, otherwise referred to as ‘the China of Africa’.
Debt: FG directs airlines to automate payment systems
The federal government has given domestic and foreign airlines operating in the country a January 1, 2017 deadline to automate their remittance/payment systems.
The directive is in line with government’s determination to end the indebtedness of airlines to aviation agencies.
There has been an unending battle between the agencies and airlines over indebtedness arising from the five per cent Ticket Sales Charge/Cargo Sales (TSC/CSC) amounting to over N10bn payable to the Nigeria Civil Aviation Authority (NCAA).
Other agencies like the Federal Airports Authority of Nigeria (FAAN) and Nigerian Airspace Management Agencies (NAMA) are also owed by the airlines.
To make for ease of payment and stop further debt accumulation, the government directed airlines to join the automation system latest by January 1, 2017.
Availability of Credit to the Corporate Sector Increases in Q4 2016 - CBN
The availability of secured credit to households increased in Q4, 2016 and was expected to increase in the next quarter. Changing economic outlook remained a major factor behind the increase.
Lenders reported that the availability of unsecured credit to households increased in Q4, 2016 and it was expected to increase further in Q1, 2017. Lenders reported that changing economic outlook contributed to the change in credit availability in Q4, 2016.
The overall availability of credit to the corporate sector increased in Q4 2016 and was expected to increase further in Q1, 2017. The major factors contributing to increased credit availability were, changing sector specific risk, brighter economic outlook, improved liquidity conditions and tight wholesale funding conditions.