Innocent Chukwuma, Chairman and Founder of Innoson Group, has advised young entrepreneurs against obtaining loans from Nigerian banks to run their businesses.
Innoson, who is still fighting Guranty Trust Bank over alleged N700 million deductions from the company’s account in 2012, gave the advice during a Zoom chat with Nigerian entrepreneurs.
Nigerian entrepreneurs are frustrated not only by the difficulty of obtaining funds, but also by the high interest rates charged on loans.
Deposit money banks in the country charge loan interest rates ranging from 25% to 26%.
However, the CEO of Innoson Vehicle Motor suggested that entrepreneurs seek loans from the Bank of Industry, noting that commercial banks’ interest rates can reach as high as 26%, making it difficult for businesses to survive.
He stated, “Any entrepreneur who goes to commercial banks for financial backing will most likely be shut 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 stated that many businessmen in Lagos, Benin, and Kaduna, among other places, are prospering as a result of the Bank of Industry’s assistance.
Innocent said, “That is why we are loyal to our government because our government made it available to us.”
Innoson also promised to use his power and influence to help entrepreneurs with viable business plans secure loans.
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 first started his own business, he applied for a loan at the BoI twelve times before being approved.
According to him, he is a member of the BoI’s “hall of fame,” and he believes that persistence is essential in obtaining a 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.
