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Industrialists unmoved by N500bn Industrial Revival Fund

By Franklin Alli
Industrialists have said that they are not excited by the proposed N500 billion Industrial Revival Fund (IRF) by the Federal Government, as it may yet be another dud cheque.

“In the recent past, we have witnessed many funds such as the N50 billion agric. revitalization fund, the N70 billion textile fund, the sugar development fund, the automotive development fund and rice development fund, the experience with these funds is nothing to cheer,” said the source.

According to him, what industrialists needed is an investment climate that will reduce operating cost, cheap fund from financial system, long term funds from banks and a regime of policy consistency.

According to another industrialist, the proposed fund is a welcome development, nevertheless, the Bank of Industry (BOI) should not be allowed to monopolise the sourcing and disbursing of the fund, if the bail out package is to achieve optimal result.

He posited that government should structure the implementation of the fund in such a way that the BOI should domicile the money with commercial banks for disbursement to would-be beneficiary industrialists.

“The fund after it’s sourced should be disbursed through the normal banks(commercials bank),and not through BOI itself because BOI is a government establishment.  If the fund is sourced and disbursed alone by BOI, there might be high risk of failure due to political concession,” he stated.“If you restrict the sourcing and disbursing to BOI political concession would make a nonsense of the laudable thrust,” he warned.

The further counselled that industrialists who access the money should be made to pay back within 3-5 years tenure and at a minimal interest rate.

He also called for bailout in other areas, too , particularly power, because as he puts it“If you revive industries without  stable electricity supply , bulk of the money will be spent on diesel, LPFO ,etc.”

Industrialists have said that they are not excited by the proposed N500 billion Industrial Revival Fund (IRF) by the Federal Government, as it may yet be another dud cheque.

“In the recent past, we have witnessed many funds such as the N50 billion agric. revitalization fund, the N70 billion textile fund, the sugar development fund, the automotive development fund and rice development fund, the experience with these funds is nothing to cheer,” said the source.

According to him, what industrialists needed is an investment climate that will reduce operating cost, cheap fund from financial system, long term funds from banks and a regime of policy consistency.

According to another industrialist, the proposed fund is a welcome development, nevertheless, the Bank of Industry (BOI) should not be allowed to monopolise the sourcing and disbursing of the fund, if the bail out package is to achieve optimal result.

He posited that government should structure the implementation of the fund in such a way that the BOI should domicile the money with commercial banks for disbursement to would-be beneficiary industrialists.

“The fund after it’s sourced should be disbursed through the normal banks(commercials bank),and not through BOI itself because BOI is a government establishment.  If the fund is sourced and disbursed alone by BOI, there might be high risk of failure due to political concession,” he stated.“If you restrict the sourcing and disbursing to BOI political concession would make a nonsense of the laudable thrust,” he warned.

The further counselled that industrialists who access the money should be made to pay back within 3-5 years tenure and at a minimal interest rate.

He also called for bailout in other areas, too , particularly power, because as he puts it“If you revive industries without  stable electricity supply , bulk of the money will be spent on diesel, LPFO ,etc.”


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