Banks 'Still Not Lending', Centric Commercial Finance Survey Reveals

26 Nov 2009 08:30 Africa/Lagos

Banks 'Still Not Lending', Centric Commercial Finance Survey Reveals

LONDON, November 26/PRNewswire/ -- 65% of corporate financial advisers have stated that the 'the banks are not lending', according to an independent survey commissioned by Centric Commercial Finance. 72% said that cash flow was proving to be their clients' biggest challenge. Disappointingly, 56% of respondents claim that banks have removed or are restricting clients' facilities.


Tim Hawkins comments: "The market needs certainty and innovation right now. Advisers are looking to the independent asset based lending and invoice discounting sectors for liquidity for their clients, which is so notably lacking from elsewhere. These facilities have not only proven to be a valuable lifeline to businesses during the recession, they will also grow with them as they emerge from it. The renaissance of invoice discounting and asset based lending has come at exactly the right time."


Described by advisers as a 'core funding solution', 80% of respondents state that asset based lending and invoice discounting offer 'improved working capital' (66%), followed by 'higher levels of finance' (66%) over and above traditional sources.


When recommending a solution, advisers look for lenders to 'deliver the deal as promised' (86%). This is followed by 'certainty of funding' (63%), 'access to decision-makers' (51%), 'business understanding' (46%), 'speed of service' (42%), 'creativity' (37%) and 'reputation' (18%).


However, financial advisers are optimistic about the UK's emergence from recession, with 65% of accountants and finance brokers expecting to see 'significant increases' in transactional activity within the next 6 to 18 months. 26% of those surveyed anticipate a resurgence of activity within 18 to 24 months. At the two opposite ends of the spectrum, 2% believe this will happen in the next 6 months and 7% predict two years or even longer.


Whilst 77% of advisers who responded to the survey stated that 'survival' is the primary focus for their clients, 70% claim that their clients are now ready to 'exploit gaps in the market'.


In addition, 76% of advisers considered that an equity release scheme for business owners considering retirement would be a highly 'appealing' option at this time. Whilst a minority of respondents felt that some owners may elect to 'hang on for better times', the vast majority felt that equity release would be appropriate where the 'valuation is not too low'.


You can find out more about Centric Commercial Finance at http://www.CentricCF.com.


Source: Centric Commercial Finance

Contact details: Michael Symes, t +44(0)20-7520-9216 m +44(0)7736-008270

SANUSI LAMIDO SANUSI IS “NIGERIANS REPORT” MAN OF THE YEAR 2009

“NIGERIANS REPORT” MAN OF THE YEAR 2009

Sanusi Lamido Sanusi: A ‘sanitary officer’ to bank on for cleansing the stench in our banking stables

Sanusi Lamido Sanusi, 48, has a strong mind. And he’s not afraid to open it up, especially to the clamourous clan of conspiracy theorists who rose up at the mention of his name, wielding prickly pens. But he has the last word on their tango: “Journalists and writers must respect the intelligence of their readers and understand that we read columns to be educated and not misled.” Fair enough. The naysayers have since realized they have a match in him.

At his inquisition-style confirmation hearing before the Senate for his suitability for the post of head of the Central Bank of Nigeria., CBN, SLS (it’s a close homonym of ‘excellence’), as he’s fondly called by friends and foes alike, took a swipe at the president’s hackneyed mantra of state of “7-point Agenda”; it is as effective, he surmised, as chasing after many rabbits. It was June 3, 2009; the apex legislative house would clear him to take up his presidential appointment.

And it was all in a day’s work for the lugubrious Big Man’s spokesperson who came out, nostrils flaring, with a retort to SLS. SLS would show he cared even less whose wrists were bloodied in the wake of the ‘bank-quake’ he set off on a very historic 14th day of August, 2009, which saw hitherto sacred cow topnotch bank executives booked for gross misconduct. That first wave swept away CEOs of one-fifth the Augean banking stables. He has sacked the president’s personal banker in the second wave of his decisive action taken to safeguard the financial sector from systemic collapse.

With a Bachelor of Science degree in Economics from the prestigious Ahmadu Bello University (ABU), Zaria, SLS first took up university teaching before going on to become Group Managing Director/Chief Executive Officer of First Bank Plc, Nigeria's oldest bank and one of the biggest financial institutions in Africa. He was first Executive Director, Risk & Management Control, part of what commended for his latest assignment.

In Greek mythology, King Augeas’s stables had not been cleaned in 3 decades. Heracles got the unenviable task of cleaning them all in one day. He achieved the Herculean task by diverting two rivers through them. (Hercules is the Roman equivalent of the same sanitiser fellow.)

‘Augean’ is now an adjective for filthy fair, a dirty situation extremely difficult and unpleasant to handle--unless you possess know-how and are willing to use it to the best of your judgment. A second requirement is a tough skin.
Underneath the perfumed stench in the sector was a funny odour carried over from predecessor governor Charles Soludo’s consolidation drive; it had long been suspected that rot was rife in the sector.

More change would come to define things and the pace of things in the crucial sector. His call on the rarefied chambers of banking dons has now left many mantel place showpieces toppled, swept off their high horses. As the Yoruba of the Nigeria’s South-West say: The wind has ruffled feathers, now we can see the rump of the fowl.

Although Sanusi’s forebears are Fulani aristocrats from the North of the country, he’s never been far from Nigeria’s erstwhile federal and continuous financial capital. It was where he had his secondary education, at the elite yet egalitarian King's College, Lagos.

In a country where cleavages of religious and ethnic derivation always set pulses racing, his announcement that the Islamic banking model already ratified by his predecessor was ready for takeoff set off alarms. A highly conscientious Muslim, SLS uncharacteristically didn’t panic into a retreat on account of the seeming ‘conflict of interests’. He maintains his austere profile courageously as a ramrod posture under the fiery flurry of accusations of a ‘Northern agenda’ to take over banking in the country.

He’s made crystal clear the “need to strengthen” the regime of “consolidated supervision.” “It’s a learning point for regulators”; there’s “obviously…the need for risk-based supervision. If we have a risk-based supervision framework in place, anybody looking at the discount window would have been put on alert that there was the need to check certain things relating to certain banks, especially given the fact that the liquidity stresses came at the time of the global [economic] meltdown.
“And we know that [this] has affected Nigeria through two key channels—the oil price channel and the Foreign Direct Investment, FDI, outflow channel—which led to the crash in the stock market. Now, it would have been very clear that the problems of the banks were related to their exposure to the capital market and the oil market.”

We get the point now. Now the system is being set right side up. SLS burst onto the scene quietly not to rattle ‘the system’; he came to bell the very big cats in it. Married with children, SLS is widely published in many academic journals, books and newspapers in many lands.


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Nigerians May Welcome Military Coup

A popular American online news channel Huliq has reported Saturday that a military coup might be what most people need now in Nigeria since they have lost faith in the corrupt ruling party.

Nigerians have lost faith in their political leaders and may even welcome a military coup if that can salvage the nation from the evils of corrupt political contractors in power.

With over 20 million unemployed in the most populous country in Africa, Nigeria is on the brink of the worst fears of disintegrating before 2015 as predicted by the CIA. But majority of Nigerians blame their political leaders for misplacing priorities and scuttling the great prospects of the innovations developed by the Nigerian intelligentsia of gifted artists, scientists and scholars who have proposed practical solutions to the problems plaguing the nation. The greedy political contractors in power seem to be more confused than the electorate. They are still abusing their positions in government as revealed by the scandalous reports of misappropriations of public funds when last Thursday, Mr. Olabode George, a former chieftain of the corrupt and notorious ruling People’s Democratic Party (PDP) and former Chairman of Board of Directors of the Nigeria Ports Authourity (NPA) was convicted for corruption. And he was not alone. Most of the former governors are still facing charges for corrupt practices. But many of them are still dining and wining and living large in their private estates in Lagos and Abuja.

Many banks have crashed and the manufacturing industry cannot function without regular power supply as daily outages have made many industries to collapse or relocate to Ghana where electric power supply is constant and cost of production is affordable.

There are public rallies against the government’s decision to deregulate the downstream sector and remove subsidies, and kidnappings are still common in the eastern states and Niger Delta region.

Millions of Nigerians say that Nigeria was better under military rule and have recalled that even though the country was bad under military tyrants, the corrupt shareholders of the PDP have made things worse.

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The Corruption and Strangulation of Nigerian Youth by the NYSC

The Corruption and Strangulation of Nigerian Youth by the NYSC


Youths obey the clarion call
Let us lift our nation high
Under the sun or in the rain
With dedication and selflessness
Nigeria is ours, Nigeria we serve.

This is the first stanza of the National Youth Service Corp(NYSC) anthem.

Looking closely to the words of the anthem, it exhibits the willingness of the great Nigerian youth who invariably would become the future leaders of our country to obey the call to serve his fatherland selflessly, but that’s not the case.

What is now obtained is the corruption of the mind of the great Nigerian Youth. How, you may ask? I will tell you. You may be aware of the fact that money changes hands and favors are obtained to influence the posting of the prospective corps members to what is called the “STATES OF MILK AND HONEY” where there are better opportunities in the sense that the availability of white collar jobs are higher than in other states. These most sought after states include Lagos, Abuja, Rivers, and Bayelsa, but this is not the end. After securing the posting to any of these so called “milk and honey” states, more money changes hands and more favors are granted to post the corps members to lucrative companies, such as banks or oil companies that pay well. The ideology is that the more you have, the better your placement. This is a country that is breathing fire and brimstone on corrupt practices, but embedding it knowingly in the minds of the future leaders of the country.

One may ask why the craze for better employment opportunities? The answer is simply the inability of the scheme to pay corps members sufficiently. The monthly allowance of a corps member is N9, 770 (about $90) only. If you get lucky to get posted to an organization that pays sufficiently, you may get from N8, 000 – N40, 000, excluding the allowance from the Federal Government, but if you are unlucky, you get stuck with the regular N9, 770. From this meager allowance, you are expected to feed, transport and accommodate yourself, because most of the employers do not provide accommodation and to worsen the case, this petty cash allowance is not even paid on time.
Let us break this down logically. You are posted to teach at a school in Ojo suburb of Lagos state and this is your first time in Lagos and no form of accommodation is provided. You are lucky to have a friend that resides in Ikoyi, but he daily transport fare is N500 and approximately N10, 000 monthly. How are you expected to feed, bathe, clothe and transport yourself to the NYSC Secretariat, pay the small levies imposed and other activities??? It often makes one wonder if its self-service or government imposed slavery?

This is a very serious issue that needs looking into.
Accommodation and transportation are important things that are very necessary for a corps member during the service year and the government should look for ways to lessen the burden of corps members.

Nigerian Youths do not deserve to be subjected to this form of physical, psychological and social trauma. It can be authoritatively said that the government is nurturing a corrupt and mentally broken-down youth in Nigeria.


By AI, A NYSCorps member serving in Lagos, Nigeria.
October, 2008.

Editor’s Statement: Nigerians Report is committed to reporting the truth without fear or partiality for the common good of humanity.

Every evil begins with a lie and the only way to get rid of evils is to expose all the lies of the devils in our midst no matter their rank and file without apologies or regrets.