Business group seeks CBN’s support to finance companies
NEWS DIGEST – The Finance Houses Association of Nigeria (FHAN) has beckoned on the Central Bank of Nigeria (CBN) to grant Finance companies access to cheap funds.
FHAN President, who doubles as the Managing Director of CFS Finance Limited, Bola Agunbiade, made this call at the stakeholders’ luncheon organised by Crownrise Finance Plc for the purpose of introducing the N1billion Crownrise Bond.
Agunbiade, in an address stated that the greatest challenge embattling the subsector is high cost of funds and that CBN can help address this by supporting finance companies with access to cheap source of funds.
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“The major challenge that we face as finance companies is that our cost of funds is very high. Most of the times, where we get our funds, from individuals and organisations, they always want a premium, a higher premium than what is obtainable in the money market or in the banking sector. That is why you see some finance companies charging up to 10 percent per month interest rate.” She said.
Also, while giving facts and figures, Agunbiade noted that; not all finance companies charge 10 percent interest rate, because there are some that offer 3.2 percent, 3.5 percent.
“That is why we must continually plead with CBN that they need to support us the more. If we get cheaper source of funds, we would be able to lend to Small and Medium Enterprises, SMEs.”
She added that Finance houses have beenexistence since 1991, which is over 27 years, which shows their relevant.
“we are also relevant, we are doing something for the economy. I think the government should try and support us in that area to access cheaper funds.”
“Our sector is a cash cow sector which we need to develop in this economy and we can provide finance support for the economy” she buttressed.
