Bank of Industry gives new loan condition to manufacturers [DETAILS]

The Bank of Industry has included certification from the National Agency for Food and Drug Administration and Control as prerequisite for approval of loan requests by manufacturers of drugs, pharmaceuticals, food and food products.

The Acting Managing Director, BoI, Mr. Waheed Olagunju, stated this in Lagos on Friday, during the signing of a Memorandum of Understanding between the bank and NAFDAC.
According to the bank, the partnership with NAFDAC is aimed at ensuring that food and drugs produced in the country meet international standards, while ensuring that the Small and Medium Enterprises producing them have the financial support they need.

Olagunju said, “Those who produce foods must receive NAFDAC certification and endorsement before they can access credit. The importance of this is that if you don’t have a NAFDAC number, you cannot sell your products in the open market; and when you cannot sell, your business model will become defective and your business plan will not materialise.
“Unless we are able to establish that you can sell your products when they are produced, we will not grant you loan, because it is only when you sell that the cash flow projection on which loan repayment is predicated can be actualised or realised.”

He also said that while it was important for customers of the bank to be accredited by NAFDAC as part of the agreement, manufacturers who were not customers but had NAFDAC numbers could access loans from the BoI.
Olagunju stated, “NAFDAC will also allow BoI to access its database to know companies across Nigeria, which have been accredited by NAFDAC.

“To the extent that they have met NAFDAC requirements suggests that they are well managed enterprises and they will be substantially risk-free and we can feel comfortable dealing with such entrepreneurs.”