Nigerian Banks Killing Businesses With High Lending Rate —Innoson Boss

The Chairman and founder of Innoson Group, Innocent Chukwuma has advised young entrepreneurs against securing loans from Nigerian banks to run their business.

Innoson who still has an ongoing court case with Guranty Trust Bank over alleged deductions amounting to N700m taken from the company’s account in 2012 gave the advice during a Zoom chat with Nigerian entrepreneurs.

Nigerian entrepreneurs are not just faced with the problem of sourcing funds, but the issue of interest charged on loans is another problem frustrating them.

Deposit money banks in the country charge between 25 per cent to 26 per cent interest on loan.

But the Innoson Vehicle Motor boss said entrepreneurs should go for loans from the Bank of Industry, adding that with interest rate as high as 26 per cent from commercial banks, it will be difficult for businesses to survive.

He said, Any entrepreneur who goes to commercial banks to get financial backing; I am sure the bank will shut him down.

“Let him go to the Bank of Industry. The Bank of Industry is the only bank that I see is going well, which they have given me a loan.

“So commercial banks will push you down because of what they will be charging from you, you can’t make it in manufacturing. It is difficult.

” So, what you will do is to take a good proposal to the Bank of Industry. Work with Bank of Industry I am sure they will encourage you because they need work.”

He said so many businessmen in Lagos, Benin, Kaduna among others are doing well due to the support of the Bank of Industry.

Innocent said, “That is why we are loyal to our government because our government made it available to us.”

Innoson also pledged to use his influence to help secure loans for entrepreneurs who have a viable business proposal.

He said, “Any young one who has a good proposal let him take the proposal to Bank of Industry. I believe they will sponsor him.

“Even if they don’t understand him let him come and meet somebody like us, show it to us and if it is good, we will advise the Bank of Industry to look at the project.”

He revealed that when he started his own business, he applied for loan in the BoI for twelve times before he was finally granted a loan.

According to him, he is a member of the BoI ‘hall of fame’, adding that persistence is key to securing loan from such lenders.

“Those people who started like me, who went to commercial banks for loan, none of them is still working [operational]. They are all shutdown. The banks have closed them and sold them on auction” he claimed.