Emulate Access Bank’s N50bn Support To Businesses, ACMAN President Urges Other Banks

The President of the Association of Capital Market Academics of Nigeria, Prof Uche Uwaleke has said that the decision of Access Bank Plc to support businesses affected by the #EndSARS protest is good for the economy.

Uwaleke said this during an interview with THE WHISTLER on Monday in Abuja.

Access Bank had last week announced a N50bn support in form of interest-free loans and grants to small and medium-sized enterprises to support the rebuilding of businesses affected by #EndSARS protests.

The bank said it will today commence the disbursement of the N50bn interest-free loan and grant it set aside for Micro, Small and Medium Size Enterprises that were destroyed by hoodlums in the wake of the protest against police brutality in the country last week.

Uwaleke said that the move is exemplary as it demonstrates empathy on the part of the bank.

He urged other banks to borrow a leaf from this great show of Corporate Social Responsibility.

He said, “The N50bn interest-free loan scheme of Access Bank for businesses affected by the end SARS crisis is highly commendable.

“The move is quite exemplary and a demonstration of empathy on the part of the bank.

“Other banks should borrow a leaf from this great show of corporate social responsibility.

“Extending this kind gesture in the form of reduced interest rate and moratorium to those who already borrowed money should equally be considered.

“Much as the CBN has done a lot to cushion the impact of COVID’19 on small businesses, it can equally devise a way to encourage Access bank and others that would eventually emulate this gesture.”

Uwaleke who is also the Chairman of the Abuja Chapter of the Chartered Institute of Bankers of Nigeria said there is no doubt that the implementation of this plan will be at a cost to the bank.

This cost, he stated, should be borne by the shareholders ultimately and not the customers by way of higher bank charges.

“It is the responsibility of the CBN to ensure that deposit money banks, as financial intermediaries, do not give with one hand and take with another,” he added.

The Bank has said that the idea is to support working capital as well as access finance.

It explained that the facility has a maximum tenor of 24 months for the access finance and 12 months for the working capital.

The structure is flexible and it is to align with the customers’ cash flow.

The term facility would have a moratorium period of six months