Why Nigeria’s passport scarcity persists

We have 400 uncollected Nigerian passports – New York Consulate

BusinessDay Feb 20, 2023

Detailed WAEC examination timetable for 2026 private candidates

WAEC withholds result of 7,871 candidates for malpractice

Nigeria’s 17million housing deficit data is baseless — Fashola

Naira redesign: Fashola, Keyamo differ over Buhari’s action

Banks, Schools in Edo shut as EndSARS protests persist

Residents protest closure of banks, declare no elections in Ogun

Nigeria Air: Ethiopian Air boss meets Buhari, seeks early disputes resolution

Browsing Category

News

Thabo Mbeki at breakfast, and the moral implosion of South Africa

Commonwealth observer group calls for peaceful elections in Nigeria

Hope Moses-Ashike Feb 20, 2023

Commonwealth Observer Group of Nigeria has urged the country’s political parties, candidates and their supporters to play their part in...

We exclusively focus on SME lending – Auto Bucks CEO Olasukanmi Olaoye CEO, Auto Bucks Lenders Limited, one of the subsidiaries of Alert Group, in this interview with Hope Moses-Ashike, speaks on challenges facing lending to Small and Medium Enterprises (SMEs) and other issues, excerpt. What specific risk management strategy did you implement to maintain portfolio at risk below 1 percent? In our inaugural year of operation, we disbursed over N80 million in loans. The income generated from these disbursements, coupled with the fact that they constitute a healthy portfolio, mitigates any risk associated with our portfolio. Therefore, the revenue derived from fees and charges enables us to generate income without exposing our portfolio to risk. The robust health of these portfolios significantly contributes to the achievement of our income targets. How did you manage costs and operational efficiency to achieve profitability within seven months? To achieve profitability within seven months, we implemented several strategies. Firstly, we focused on securing cheaper funds, as lower financing costs enhance operational efficiency significantly. Secondly, while maintaining competitive pricing, we ensured that our rates were adequate to cover our cost of funds and other operational expenses. Moreover, we kept our management expenses minimal, contributing to overall cost reduction. Leveraging technology was another key aspect of our approach. By deploying advanced technological solutions, we streamlined various business processes. For instance, our electronic collection system eliminated the need for manual cash transactions, enhancing efficiency and reducing the need for field officers. Through these measures, we optimized operational efficiency and effectively managed costs, resulting in positive outcomes within the initial six months of operation. You mentioned disbursing approximately N80 million; how many individuals or businesses were beneficiaries of this loan? We exclusively focus on SME lending. To date, we have successfully disbursed loans to over 1,000 SMEs. This achievement underscores our deliberate commitment to positively impact the Nigerian economy through targeted support for SMEs. Since our inception, every loan disbursed has been directed towards SMEs, reaching a total of over 1,000 beneficiaries. How do you ensure that the beneficiaries are utilizing the loans provided to them for business growth and to contribute to the economy? The primary way we ascertain the proper utilization of the funds we disburse is through their repayment behavior. If beneficiaries have diverted the funds and not invested them in their businesses, it would reflect in their repayment patterns. Additionally, we implement rigorous monitoring mechanisms once the loan is disbursed. This ongoing monitoring allows us to assess the impact of the funds on their businesses and on the economy as a whole. Furthermore, maintaining a positive credit appraisal is crucial. A strong credit record not only facilitates future loan requests but also enables beneficiaries to potentially access larger loan amounts. Therefore, we emphasize the importance of maintaining a favorable credit history. When you mention that your portfolio at risk is below 1 percent, does that imply that you do not encounter other challenges? The strategy we’ve employed acknowledges that some clients may face difficulties in repayment, particularly during certain business cycles such as festive or fasting periods. For instance, clients in the fast-moving consumer goods (FMCG) sector may experience reduced returns during fasting periods due to decreased consumption levels. Our proactive monitoring of these clients helps mitigate potential challenges and aids in the recovery of funds. As previously mentioned, we exclusively provide loans to SMEs with a minimum of 12 months of consistent business operation and cash flow. This ensures that our borrowers have a track record of financial stability, as evidenced by their bank records. We do not extend loans to startups but rather focus on established businesses with a proven track record. Our credit analysis process is thorough and detailed, assessing the borrower’s financial history and ability to repay. For instance, if a borrower has transacted less than N500 million in the past 12 months and seeks a N5 million loan, we evaluate their monthly turnover to ascertain their repayment capacity. This rigorous process ensures that loans are utilized effectively and that borrowers can comfortably meet repayment obligations. Additionally, we implement regular monitoring to ensure that funds are used appropriately and not diverted for non-business purposes. We are mindful of seasonal factors, such as festive periods, to prevent misallocation of funds. Our commitment to responsible lending practices and diligent monitoring safeguards against potential diversions and ensures that our support truly benefits the MSMEs we serve. What are some of the other challenges your business faces? In the current macroeconomic landscape, businesses encounter various hurdles. The high cost of operation is a prominent issue, compounded by volatile market conditions. Fluctuations in prices, especially due to foreign exchange (FX) challenges, pose significant obstacles. Even after procuring goods, market dynamics can swiftly impact prices, leading to uncertainties. Moreover, macroeconomic indicators like inflation rates, currently at 33.2 percent, further complicate business operations. Elevated inflation affects purchasing power and overall business viability. Additionally, the cost of funds presents a considerable challenge. While securing financing is crucial, prevailing market conditions have increased the cost of capital, with investors demanding higher returns on their investments. Despite these challenges, we actively seek solutions to mitigate risks. This includes sourcing affordable and stable funding options while prioritizing long-term relationships with fund providers. We also recognize the importance of stable economic policies in fostering a conducive business environment. Efforts by the federal government and the Central Bank of Nigeria to stabilize the economy, particularly in areas like FX markets, are crucial for SMEs to plan and navigate business operations effectively.

CIBN, bank CEOs say lenders to remain open

Hope Moses-Ashike Feb 20, 2023

The Chartered Institute of Bankers of Nigeria (CIBN) in collaboration with the body of banks’ chief executive officers has assured...

Why online fraud is on the rise globally – Aguele, QoreID boss

Cybercrime seen as drawback to cashless economy

Eniola Olatunji Feb 20, 2023

The move to a cashless economy comes with its downsides, one of which is a higher risk of cybercrime, says,...

Buhari’s death abroad amplifies call for world class hospital in Nigeria

Stop the jokes about interim govt, election will hold – Presidency

Anthony Ailemen Feb 20, 2023

The presidency on Friday said President Muhammadu Buhari was not working on interim government, adding that elections will hold as...

Election: APC in disarray, old naira can’t buy them votes anymore - Obaseki

Joshua Bassey Feb 20, 2023

Governor Godwin Obaseki of Edo State has said that leaders of a faction of the All Progressives Congress (APC) “have...

FG import policy to ease AfCFTA implementation — Don

AfCFTA will reduce extreme poverty - Official

BusinessDay Feb 20, 2023

The African Union Commission on Friday in Abuja said the African Continental Free Trade Area (AfCFTA) would lift 30 million...

Nigeria to host secretariat of Sahel Climate Fund - Buhari

Anthony Ailemen Feb 20, 2023

President Muhammadu Buhari on Friday in Addis Ababa, Ethiopia, pledged Nigeria’s readiness to host the secretariat of the Sahel Climate...

Law. Energy. Justice: The conversation we’re not having

800 jostle for 459 customary court positions in Enugu

BusinessDay Feb 20, 2023

A total of 800 applicants are jostling to become customary court judges in Enugu State, whereas there are only 459...

WANEP-Nigeria, UAF-Africa call for violence-free election

BusinessDay Feb 20, 2023

To create awareness and advocate for a violence-free 2023 election in Nigeria, West Africa Network for Peacebuilding WANEP-Nigeria in partnership...

I will create 22 LCDAs in C’River if elected - Nyong

Mike Abang Feb 20, 2023

Effiong Nyong, the governorship candidate of the African Democratic Party (ADC), has said that he would create additional 22 local...

NDDC to work with ISA to explore seabed opportunities, protect Niger Delta environment

Ignatius Chukwu Feb 20, 2023

Seabed activities including mining and exploration affect coastal areas such as the Niger Delta region. The Niger Delta Development Commission...

INEC begins movement of sensitive materials to LGAs, activates RACs Friday

James Kwen Feb 20, 2023

The Independent National Electoral Commission (INEC) said it has commenced the movement of sensitive materials for this Saturday’s election to...

Naira crisis: Sanwo-Olu empathises with Lagosians, sues for calm

David Ijaseun Feb 20, 2023

In the wake of reported disturbances in some parts of Lagos State Friday, Governor Babajide Sanwo-Olu has sent a passionate...

All-new Mitsubishi Outlander SUV sets comfort, safety benchmarks

BusinessDay Feb 20, 2023

Massilia Motors penultimate has unveiled the refreshed Mitsubishi Outlander targeted at the Sport Utility Vehicle (SUV) savvy automotive freaks in...

Former NYSC DG, 12 others, abducted in Katsina

Suspected thugs kill APC member in Osun

BusinessDay Feb 20, 2023

Ebenezer Alaro, a member of the All Progressives Congress (APC) in Osun State, has been allegedly killed by suspected political...

« 1 … 2,401 2,402 2,403 2,404 2,405 … 3,557 »

We have 400 uncollected Nigerian passports – New York Consulate

WAEC withholds result of 7,871 candidates for malpractice

Naira redesign: Fashola, Keyamo differ over Buhari’s action

Residents protest closure of banks, declare no elections in Ogun

Nigeria Air: Ethiopian Air boss meets Buhari, seeks early disputes resolution

News

Commonwealth observer group calls for peaceful elections in Nigeria

CIBN, bank CEOs say lenders to remain open

Cybercrime seen as drawback to cashless economy

Stop the jokes about interim govt, election will hold – Presidency

Election: APC in disarray, old naira can’t buy them votes anymore - Obaseki

AfCFTA will reduce extreme poverty - Official

Nigeria to host secretariat of Sahel Climate Fund - Buhari

800 jostle for 459 customary court positions in Enugu

WANEP-Nigeria, UAF-Africa call for violence-free election

I will create 22 LCDAs in C’River if elected - Nyong

NDDC to work with ISA to explore seabed opportunities, protect Niger Delta environment

INEC begins movement of sensitive materials to LGAs, activates RACs Friday

Naira crisis: Sanwo-Olu empathises with Lagosians, sues for calm

All-new Mitsubishi Outlander SUV sets comfort, safety benchmarks

Suspected thugs kill APC member in Osun

The Company

Legal & Privacy

Quick Links

Support