Business

Rivers State Microfinance Agency In Tune With The New Rivers Vision

Published

8 years ago

February 24, 2016

Governor Wike

In order to put the record
straight and in line with the New Rivers Vision, the policy of the present administration, the facts must be laid bare for public observation, scrutiny, analysis and inference to be drawn to gauge the growth of the Rivers State Microfinance Agency, its capacity building structure and contribution to the overall economic development of the state.
Presently, the new leadership of RIMA has provided a template for total departure from the usual pattern of inconclusive policy initiative and defective accounting reports, which has beset the organization from inception and has thereby, created liability and losses for the Agency’s bottom line mandate.
A juxtaposition of previous financial report by the past administration in RIMA is totally incomparable with the new financial reports posted and the achievements of the present leadership.
This is a swift reaction to the misguided and unfounded assertion credited to an article published in a National Newspaper “Rivers State Microfinance agency gives Kudos to Wike for CBN =N=2B MSME Loan- but past finance commissioner says Amaechi did most of the job”.
It is with great dismay that the management of RIMA views such distorted and ambiguous issues raised by this ill-informed writer capable of misleading the general public on the transactions and operations of RIMA in carrying out its dual functions /responsibility – Double Bottom Line strategy. This is to say, fostering wealth creation – bottom up and capacity building. It is a misleading, ill-conceived and mischievous write-up meant to paint the Agency in questionable pictures and bringing it to disrepute.
The integrity of the management and board is of unblemished antecedent and impeccable record. This unparalled quality marks the team of management and board as distinguished persons.
RIMA has put in place modalities to cut down high operational cost. RIMA has also initiated methodologies to tackle low banking culture in the rural areas and among the urban poor, by taking banking to their door steps. In spite of these factors militating against the progress of Microfinance Banks, RIMA is thorough and selective in its approach in carrying out the double bottom financial line. The rascality of the previous management is epitomized by the losses incurred throughout the duration of the administration between 2010- 2015.
Traditionally, our rural folks borrow money from friends and relatives and repay the same amount of money borrowed at very exhorbitant rate with disregard to measured tenure for the loan repayment. This is why RIMA is working assiduously to bridge that gap and lift modern standards in adherence to International Microfinance Banking best practices.
RIMA is evolving policies to cushion the paucity of human and institutional capacity building. RIMA is not in inordinate competition with commercial banks but braces the task of leveraging Micro, Small, Medium Enterprises into profiteering institutions through single digit interest rate borrowing.
RIMA has decided to take it more seriously, its core objective of reaching the poorest households through sustainable business approach using loan not as grants and for charity driven projects but loans repayable with not more than 9% interest rate all inclusive.
The success of RIMA is associated with its financial loan outcome through the loan portfolio quality to beneficiaries CFI (City Finance Institution), RFI (Rural Finance Institution) and other categories of beneficiaries. This is the management of loans for benefiting Institutions and its recovery.
RIMA is striving to achieve social and financial goals. This is managing a double bottom line. Candidly, strong financial performance underpins the agency’s ability to pursue its social objectives, and conversely, achieving goals generally enhances financial performance. This is exactly why this present leadership in RIMA is determined to succeed.
In the said publication, it was erroneously insinuated that the Rivers State Micro Finance Agency (RIMA) had posted a profit of one billion naira accruing from the seed capital of two billion naira generated through the management of SME funding. This is not true and totally unrealistic. It is unimaginable that at a time the Agency was in a comatose position, it was posting positive result and surprisingly profit.
A clear indication shows the pointer to losses incurred from the financial statement of RIMA for five years (2010-2015) buttressing the fact that the Agency was operating at loss and heading for a catastrophic end.
A summary of the financial details between the period 2010-2015 (the period under review) from auditing shows that RIMA incurred losses to the tune of :
=N= 144, 170, 114.00 K (2011) Loss
=N= 273, 708, 948.00 K (2012) Loss
=N= 163, 146, 712.00 K (2013) Loss
=N= 197, 314, 118.00 K (2014) Loss
=N= 194, 584, 973.00 K (2015) Loss
Which brings the total amount to :
=N= 972, 924, 865.00K
It is also not true that the previous administration was at the verge of securing the Central Bank of Nigeria MSME fund for onward lending to end users in the various categories of micro, small, medium entrepreneurs at a single digit interest rate. Amaechi’s administration found it very difficult to access the loan. It would have been for political intent and purposes. This is as exemplified by the previous loans secured. The dubious and unscrupulous nature of the documentation of the application alerted the CBN of the underlying interests behind the loan.
This prompted action, the Central Bank of Nigeria in halting the process of accessing the loan by former Governor, Rt Hon Chibuike Amaechi. Of what use was the three billion naira Agricultural loan from the federal government put into by the Rotimi Amaechi administration? Who were the beneficiaries of these loan? This was a clear indication that if the (CBN) had granted the loan as earlier applied, it would have been yet another largesse for diversion and political patronage. The erstwhile administration never provided the required framework and conditionality by which the Central Bank of Nigeria (CBN) would have allowed that administration to access her own quota of the two billion naira of the two hundred and twenty billion naira targeted for the scheme by the Goodluck Jonathan’s administration.
The loan application as prepared by the Amaechi administration to access the two billion naira SMEs, was fraught with irregularities and discrepancies, which therefore necessitated the CBN in carrying out a thorough verification and formal examination of the true identity of the would be beneficiaries. It was found to be a sham and a bogus accounting procedure meant to divert the fund into purposes for which it was not originally meant for. A clear example of the dubious and diversionary tactics employed in accessing other federal government funds was the three billion naira Agricultural loan earlier secured and put forward.
It was quite obvious, that any money further released to the previous administration by the (CBN) was bound to be diverted for political patronage and election purposes. Just like the previous efforts for the Agricultural loans.
This was why the Central Bank halted the further payments to the previous administration.
It is surprising that after the processing of all the documentations, by the previous administration the money was not released. This was a result of that administration’s inability to provide the necessary platform, which has been met by the Wike’s administration in so short a time.
The state Governor, Chief (Barrister) Nyesom Wike has pledged its resolve in ensuring transparency and accountability in the management of the two billion naira SME fund. It has already mobilized beneficiaries across the 23 Local Government Area councils to show the workability and spread through the different strata.
Governor Wike has assured the people of the state that his administration will take proactive measures in ensuring that (SMSE) will grow. He further stated that his vision is for entrepreneurship development, poverty reduction, creation of jobs and ensuring food security.
The condition for issuing out the loan by (RIMA) would be friendly enough for beneficiaries. To show the magnanimity, honesty and sensitivity by the present administration led by Nyesom Wike, the Rivers state Government would serve as a collateral for the SMSE in order for these entrepreneurs to play very active roles in the growth and economic development of the state to create opportunities.
Obomanu is of Radio Rivers, Port Harcourt.

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

4 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

1 week ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu