Envoy lambasts Nigerian banks over stringent policies on loans

The Nigerian Ambassador to Uganda, Dr Nya Asuquo, has lashed out at commercial banks in the country for deliberately bringing up policies which make it extremely difficult for business in Nigeria.

Specifically, he said the banks make it difficult to give out loans to individuals and corporate bodies for development projects, and called for a change of policy if the country is to grow.

Asuquo said this in Calabar, Cross River State during the official handing over of 150 units of houses at Aka Luxury Estate by Kalmber (Nigeria) Limited to Federal Housing Authority, FHA, and development partners, MCDAVISION International Company Limited. The project started in 2007, so as to meet the housing needs of low income earners, but the project stalled because commercial banks could not grant loans for its completion.

The former House of Representatives member, who is also the Lead Developer /MD/CEO of Kalmber,  said: “we would have completed this project before now but it is hard to get money from banks in Nigeria. Our banks are not interested in giving out money for development projects; they are only interested in selling foreign currencies.

“There is no country that develops without banks giving out money consciously to traders, farmers, entrepreneurs, developers amongst others, but here in Nigeria, our banks have been exploiting us and declaring dividends rather than committing those monies into the hands of corporate groups and individuals for developmental transactions as is done in other developing countries. I challenge our banks to turn over a new leaf.”

He said that apart from the 150 units that the development partners would have to do finishing touches, there is a plan to build another 600 units, adding that the new arrangement of handing over the uncompleted units is to ensure the vision does not die.

Amb Asusquo stated that “with this move, we have been able to overcome the difficulties which existed with refusals of banks to loans us money. I am sure this arrangement will bring the Estate to completion.”

On his part, Mr. Bunmi Johnson, Consultant/Project Manager of Kalmber Ltd added that there was another 100 hectares of land to develop but appealed to “youths and elders to lend their total support for the project for it will greatly enhance the development of the area.”He also appealed for support in terms of loans from the banks so as to boost business and housing programmes in Nigeria.