Aruga Joe Omokaro – Lagos

Harsh banking policies are said to be largely responsible for the collapse of several manufacturing companies and industries in Nigeria, resulting in increase in unemployment.

Managing Director of Necit conglomerate, Dr. Emmanuel Iheagwazi, raised the alarm on Wednesday, August 14, 2024, in a media chat with journalists in Lagos.

He particularly accused six banks of manipulating lending policy, and interest rates, in order for a borrower to pay above the interest rate.

He disclosed that, his company is having a running battle with some banks over payment of interest rates.
He added that, some banks are insisting that, the interest rates should be redeemed at the current exchange rate, even if such transactions were sealed several years ago with a fixed amount.

He lamented that, years ago, it cost an importer to clear a container with N2 5 million. “But now it costs N16 million to clear a container “

Dr Iheagwazi is a Pan-African industrialist, with factories in various states, mostly into production of varieties of lubricants and also into mining.

He disclosed that 40 per cent of raw materials needed for production are sourced locally in Nigeria, while 60 per cent are sourced abroad. He further lamented that, sourcing for Forex through the banks to enable his company to procure raw materials abroad, is like an elephant passing through the eye of a needle.
He explained that, the policy of sourcing for foreign currency from Central Bank of Nigeria (CBN) through the banks is so frustrating that, many companies cannot meet up with the banks” policies, thereby running at loss, and compelling some of them to lay off staff.

He disclosed that, his companies has a work force of over 2,000 staff, and the economic crunch may compel him to lay off some staff, if the banks continue to frustrate production.

Ironically, his company he disclosed has written to the office of the Vice President and to the Manufacturers Association of Nigeria (MAN), to wade into the feud between his company and the banks, but no positive intervention.

He is, therefore, appealing to President Bola Tinubu and the Nigeria Senate, to urgently intervene in his feud with the banks, in order not to lay off some of his staff.

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