With its liberalised loan conditions and
very low interest rate, the Bank of Agriculture (BOA) has become the
preferred lender for manufacturers of leather products in Aba.
To this end, seven cooperative groups
have received N10.4 million loans from the BOA in the second phase of
the loan disbursement programme to members of the Leather Products
Manufacturers Association (LEPMAS), Abia state.
The loan facility, which was facilitated
by Market Development in the Niger Delta (MADE), an intervention agency
of the British DFID, was part of efforts aimed at encouraging
manufacturing and standardisation of finished leather products in the
commercial city of Aba.
Speaking during the loan disbursement in
Aba, the Intervention Manager, MADE, Dr. Adeyinka Abimbola said that it
was a recent addition in the intervention programmes of the agency in
recognition of the “hard work” of Aba artisans in manufacturing of
shoes, bags, belts and other finished leather products.
He said that even though MADE was not
engaged in direct intervention, it decided to partner BOA to provide
loan facilities for those involved in finished leather products because
the bank offers the lowest interest rate.
“Our joy is to see you grow to compete with global products and standards,” he told members of LEPMAS, even as he urged them to demonstrate their integrity in small loans in order to attract bigger loan facilities.
“Our joy is to see you grow to compete with global products and standards,” he told members of LEPMAS, even as he urged them to demonstrate their integrity in small loans in order to attract bigger loan facilities.
Abimbola further stated that MADE has a
target of improving income for 150,000 people in the Niger Delta area
where its intervention programme is focused, adding that the five year
programme would terminate in 2017.
The BOA zonal manager, South East, Mike
Owonuwa said that the beneficiaries should not take for granted the
cheap interest rate of 12 percent and liberalised loan conditions and
see the loan given to them as “national cake.”
The zonal manager, who was represented by the Executive Director, Wholesale Finance, Mr. Babatunde Igun, said that it was expected that loan beneficiaries would utilise the money judiciously to expand their business and add value to their products.
The zonal manager, who was represented by the Executive Director, Wholesale Finance, Mr. Babatunde Igun, said that it was expected that loan beneficiaries would utilise the money judiciously to expand their business and add value to their products.
According to him, BOA “is in the
business of empowering people, generating income, creating jobs and
ensuring food security” and has so far disbursed N54.5 billion to 315
beneficiaries.
Owonuwa expressed the commitment of BOA
to help members of LEPMAS grow their business noting that the bank was
“remodeling its business platform to make it easier to access loans.”
Nonetheless the BOA branch manager,
Umuahia, Ngozi Nwanah said that the repayment of loans by the first
batch of beneficiaries was “disheartening” and called for a change of
attitude. She said that many cooperative societies have become
beneficiaries of the loan facility following in the footsteps of
Goodness Cooperative Society, which was the first beneficiary from
LEPMAS.
The branch manager specifically urged
women in the business of finished leather products to form cooperative
societies to enable them access bank loans thereby improving their
income.
While expressing the same sentiment
about poor repayment of loans by beneficiaries, the branch manager,
Obehie, Mr. Bertrand Onyiriuka advised members of LEPMAS to avoid
falling into the trap of “Obehie experience where only a few a few are
doing the right thing.”
He said that BOA as a development
finance institution was always ready to assist those with demonstrable
skills and “responsible enough” to utilize loans effectively.
In his remarks, Mr. Ademola Fazaz, who
represented the general manager, Abia State Marketing Agency and Quality
Control, said that the agency was putting in every effort to ensure the
improvement in standards of leather products originating from Aba.
Earlier in his welcome address, the
president of LEPMAS, Mr. Okechukwu Williams said that the business
association has benefitted immensely from partnering MADE to attract the
“friendly” loan facilities of BOA which “is helpful to our business”.
He said that 16,500 artisans have been registered in the finished leather products cluster and assured that every member would eventually access the loan facility provided by BOA.
He said that 16,500 artisans have been registered in the finished leather products cluster and assured that every member would eventually access the loan facility provided by BOA.
By Emmanuel Ugwu, Umuahia/ Thisdasy
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