February 12, 2018
By InvestAdvocate
The Honorable Chairman, House Committee on Banking and Currency, Rt. Hon. John Onyereri has expressed the need to encourage the private sector in a bid to advance the growth of the economy by reducing the interest rate on loans.
While addressing the newsmen at the Multi-trex factory tour, He said that the private sector must be stimulated because it is the only way to grow the economy and there is need to do away with high interest rate on loans.
Honorable John said that it is so annoying that we pride ourselves to have the biggest economy in Africa while our private sector’s contribution to the GDP is small.
” Until we have the financial services commissioned, where we have the fiscal and monetary authorities converged, not one authority bringing up high treasury bills rate which rather translates artificial benchmark, our economic growth will still be retarded.” He said.
The Chairman reassured that he will push until the Multi-Trex factory is resuscitated, saying that ” We are pushing as parliament and we will keep pushing. At a point, they will do that because we have the will, but nothing is achievable until there is an executive approval.
Speaking also, The Managing Director, Multi-Trex, Mr Dimeji Owofemi said that Cocoa is the largest non-oil commodity in the country and the best way to benefit from this natural resource is to collaborate with the Central Bank Of Nigeria, which will enhance the company’s determination to bring back processing plants to life through production.
He assured that the company will create 1500 jobs, adding that jobs with the intent to create even 500 jobs in china will never be allowed to liquidate.
The Managing Director commended the CBN’s efforts to set up 500 billion naira fund to help exporters carry out their obligations without any financial stress, thereby adding value to the GDP base of the country.
” The CBN is making effort, addressing exporters of its intent to set up 500 billion naira fund to help exporters like us and i know that the Governor of the bank sounded seriously on this at the meeting, with an overwhelming interest in Multi-trex”. He said.
Mr Oladimeji said that the money expected to keep the company moving is just a working capital of 4 to 5 billion naira, adding that it sounds big but a ton of cocoa was one million naira per ton in the last season and hence assured that the company will be able to process 65000 tonnes at full capacity.
The role we will expect the committee to play is to bring bring the three legs of Bank of Industry, NEXIM and the Bank of Agriculture, saying that with the presence of the legs, the risk will be shared because the higher the risk, the higher the return.
The Managing Director, NEXIM, Mr Abba Bello has stated its readiness to effect the processing of the Loan application by Multi-Trex, but alluded to the fact that the terms of settlement between Multi-Trex and AMCON has to be reached.
He said that it is the best project the NEXIM can support because of the available equipment at the disposal of the cocoa processing company, “only the working capital is required to ensure its maximum functioning”. Bello added.
According to the NEXIM MD, the company needs about N5 billion to operate at maximum capacity; but would about N700 million as working capital to commence operation.
