Home Business Vandalism of oil facilities threatens Nigeria’s ranking on global business

Vandalism of oil facilities threatens Nigeria’s ranking on global business

by Business News Report

The Central Bank of Nigeria, CBN, has warned that vandalism of oil facilities may worsen the country’s ranking on the global ease of doing business
The Head Research and Development, CBN, Dr. Musa Olasupo, made this known at the interactive forum on the National Collateral Registry, NCR, and Credit Reporting System in Lagos.
He stated “In 2013, on getting electricity we were ranked 184 out of 189, and with the current drop in production due to militancy activities, there is no argument that the country will be ranked 201 this year.”
He also noted “Nigeria is ranked 138 out of 189 countries in the world for doing business report of 2013, if you need a Construction Permits we are ranked 146 out of 189 countries in the world with ease for you to get the permit. Also in enforcing Contracts we are at 138, adding that “this indices, though negative, but it’s a true reflection of where we are.
“We are throwing a world of opportunity, through re-positioning the economy so as to benefit the Micro small and medium enterprises through collateral registry, this will allows you to update the financial statement.”

On access to finance, he said that only one percent of Nigerians actually get credit from banks. To start a business, is either you are going to leverage, or you are in pay earning which is your savings or you have to run to family and friends or you actually going to have a supplier credit some who have to give you a lifeline before you can start.
“The banks are not comfortable with startup because, it has been establish that eight out of every ten startup in Nigeria dies in the first two years, and the banks are not ready to lose their money. Likewise interest rate in Nigeria is double digit,” he added.
On the Benefits of Collateral Registry, he explained that it will enable businesses to leverage their assets to obtain credit for growth, improves the liquidity of assets, especially short-term assets such as accounts receivables, make asset diversification possible in financial institutions by efficiently spreading risk and providing banks with profitable lending opportunities in the Micro Small and Medium Enterprise sector,MSMEs
Highlighting on countryexperiences on registry setup, he said that China registry has attracted 385,000 loan application valued at US$ 3.5 trillion of new financing in 4years to 70,000 SMEs.
“Mexico, they were able to grow their loans to about 5 to around 32,000 generating a total of US$110 billion in financing with SMEs accounting for 90% of the loan recipient firms
“Driven by the Bank of Ghana. Facilitated about 20,000 loans amounting to $800 million secured financing as at March, 2010, with accounts receivable accounting for 32 percent.
With our population, even if we can do twice of what Mexico did in the first one year, we would be moving in the right direction, a financial inclusion report that came out last year, said 283 out of the 777 Local Government don’t have any form of bank presence.”

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