The Bank of Industry has said the country’s entrepreneurs don’t have the habit of repaying loans, saying its non-performing loan portfolio awarded to entrepreneurs ranges between 80 and 100 per cent.

The bank’s managing director, Olukayode Pitan, disclosed this recently at the first edition of the community engagement development workshop organised by the Arthur Mbanefo Digital Research Centre (AMDRC) of the University of Lagos (UNILAG), Akoka.

The workshop, with the theme; “Building the Nigeria’s Economy for the Immediate Future: The Role of Innovation and Entrepreneurship and Startups Creation,” featured scholars and industry leaders including the director of the university’s Institute of China Development Studies, Olufemi Saibu; head of programme- migration for development at the German Agency for International Cooperation, Sarah Alonge, and the director, entrepreneurship and skills development centre at UNILAG, Sunday Adebisi, among others.

BOI’s lamentation
Mr Pitan, in his presentation, listed some of the conditions it is difficult for Nigerian start-ups to access loans from the bank. He said if proper steps are taken start-ups can get loans of up to N10m to expand their business initiatives.

“You can get the loans without bringing your house as security. All we require are two guarantors and I can tell you, most Nigerians have problems getting two guarantors because they know them. We require the BVNs of those guarantors and a few things but they will not give it because they know the people. So we are saying if people that know you do not want to guarantee you, why should we believe in you?” he said.

He said another thing the bank tried was the introduction of matching grants which he noted that about 20 states are a part of.

Mr Pitan said; “We go to your state and tell the governor that any amount you give us, we will match it. We will lend the money in your state but I can tell you that the non-performing loan ratio so far is on the average between 80-100 per cent.

“People believe that any money from the Bank of Industry that is owned by the government is part of the national cake. All we ask of you is pay back that money so that we can give you another loan.”

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