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Funmi Iyanda
Lagos, Nigeria
Funmi Iyanda is a multi award-winning producer and broadcast journalist. She is the CEO of Ignite Media and Executive Director of Creation Television
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Wednesday, November 28, 2007

E Dey Happen Banking

One of my wise brothers call it E Dey Happen Banking. In this articleThisday's Ijeoma Nwogwugwu nails it on the head.

6 comments:

Chxta said...

Funmi, as a journalist, you should know that Nwogwugwu failed the reading public by not publishing the full interview with that bank CEO. That gaffe by Nwogwugwu needs to be redressed.

Bisola said...

I couldn't have said it better myself. I spent 3 years begging my bank (GTB)to give me a 500k OD and they said no, because I had no collateral, even though my account showed that I could service this comfortably. Moved banks twice before I found someone to give me 1.2m and all i have to say is never go to a bank out of desperation. The interest rate of 18% has turned into more like 25% with all the monthly charges and fees. The 1.2m is long gone and i'm left repaying the loan. I'm a manufacturer and a 2 to 3 month moratorium on loans would help but i've been told that no bank would ever give me that because of my size. A kenyan friend of mine living in south africa was telling me about the huge foreign investments pouring into Nigeria because everyone just wants a piece of her, but when i asked him how come i wasn't seeing these funds, he laughed and said it's for the bigger companies. What will i do? I'm humbly servicing my loan and will think twice before taking another one. The banks truly are not concerned about the real sector, I believe all the money is going into paying larger salaries and like Ijeoma said, feeding overinflated egos.

Anonymous said...

I totally agree with that article.

It makes no difference to the common man all this jargon about a bank's capital base etc.

what is important is whether the banks are willing and able to grant loans to budding business men and entrepreneurs in niaja. At the moment they are clearly not.

It's such a hughe shame cos there are so many people who want to set up businesses and they are all snubbed by the banks... such a shame..

mike said...

I agree with the earlier comments however I think it is difficult for the finance SMEs and other companies that do not fall into the "bigger companies" category because of lack of adequate credit records system in Nigeria. Also, the legal system in Nigeria needs to be reformed to foster enforcement of contracts and timely resolution of disputes. The banks have a responsibility to protect the investments of their shareholders and as such would not take risks that can be avoided.

Having said that, i think the banks have a big role to play in developing the real sector but we all have to play our roles in helping the real sector. I have utmost respect for the manufacturers and entrepreneurs who are creating jobs and opportunities for others despite the challenging conditions.

Just like most things in Nigeria - it is easier to blame the other party for the problem while ignoring the macro causes of the problems.

Anonymous said...

hmmm. the banks always get the flak on this subject. I am quite surprised about the GTB comment by Bisola because GTBank & Oceanic are usually touted as the two banks that solidly support small scale businesses.

I remember watching an interview with Bolanle Austen Peters where she spoke about how professional and transparent GTB was in giving her the loan she used to start Terra Kulture. She was quite adamant that she did not know any of the staff before and she was just given a loan based on the strenght of her proposal.

Also I remember watching Mosun Umoru on your New Dawn & her speaking about how supportive her bank has been.Perhaps you should get a panel someday with these people and lets know the secrets behind their getting support from banks.

selina said...

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