Waheed Olagunju, acting Managing Director of Bank of Industry (BoI) on Wednesday disclosed that 63 percent of the loans disbursed from the National Automotive Design and Development Council (NADDC) were non-performing.
Olagunju stated this at the National Assembly complex, Abuja, during an investigative public hearing held at the instance of the Adhoc Committee on automobile industry’s non-access to foreign exchange from Central Bank of Nigeria (CBN).
According to him, out of the total sum of N18.11 billion accrued into the account being managed by BoI while 37 percent are performing.
In order to achieve the set objectives of the automotive intervention fund, Olagunju urged National Assembly to complement Federal Government’s efforts to boost Nigeria’s ranking on the World Bank’s Ease of Doing Business by providing necessary legislative support.
Olagunju who decried Nigerians appetite for foreign vehicles, emphasised urgent need for Federal and State Governments to roll out strict policies that would aid patronage of vehicles assembled in Nigeria.
According to the document obtained by BusinessDay, from the sum of N2.5 billion NAC Vehicle Purchase Scheme managed by the Bank, part of the fund was set aside to prospective off-takers of made in Nigeria vehicles to encourage patronage of locally assembled vehicles.
However, part of the fund which was disbursed through an on-lending collaboration with Lotus Capital Limiteds d Afrivet West Africa was recalled in September 2014.
While noting that the harsh business environment in the country contributes immensely to the huge NPL of the NADDC fund, argued that all the loans are secured, guaranteed and convertible.
On the status of the NADDC Fund as at December 2016, the Bank put the Risk asset (excluding interest rate at N3,431,100,721.30; Treasury investment stands at N21,125,229,515.71; Current Account balance stands at N21,379,592.14 while Funds from loan repayment stands at N21,401,556.70 totalling N5,559,111,385.85.
He informed the lawmakers that the challenges surrounding access to foreign exchange was a national issue, adding that “up to 2015 there were no challenges until 2016.”
He however assured that the increase in the sale of crude oil has enabled the apex bank to pump-in more forex into the economy, adding that the bank has put measures in place to troubleshoot whenever there’s need.
The lawmakers had earlier expressed concern over the health of the loans disbursed by the banks to some companies.
According to the lawmakers, officials of NADDC had petitioned the Adhoc Committee over issues bothering on the status of the N34.085 million loan for 10 years given to Rola Oil Limited, Ibadan; how the sum of N244.62 million loan given to Tilad Nigeria Limited rose to N531.22 million within four years and the N101.4 million loan given to Kunle Ola Enterprises Limited rose to N213.8 million within four years.
