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Operator Charges Bank on Long Term Credit
- By Simon Ugwu
- Published November 2nd, 2009
- MoneyWorld
- Unrated
MR. Emeka Ndu, group managing director, C&I Leasing Plc has charged banks to make long term credit accessible to Leasing companies.
He gave this charge during an exclusive interview with Businessworld in Lagos.
According to him, “availability of long term credit is a major challenge as most of the banks are more interested in financing very short term trading, especially oil imports which have shorter cycle than the leasing business.”
Another challenge he mentioned is the issue of regulatory environment which according to him is continually being addressed through the framework of the Equipment Leasing Association of Nigeria (Elan)
Mr. Ndu also stated that getting capable trained people motivated to serve is one of the challenges leasing companies face.
In its bid to improve transportation in all states across the country, C&I boss stated that the company partners Lagos State government and other states that are interested in private public sector partnership in the area of taxes and some buses systems and in future ferry business where it is applicable.
He noted that C&I has just commenced transport business with Lagos State government after a long time of planning and execution.
“We plan to make the Red Cab the primary form of flagship for the state in terms of taxes. We trust that it will go well”, he added.
On the charges, he said results from a number of factors which he listed to include prices of cars, cost of interest which is about 20-25 per cent, import duties, import surcharge, Vat, Ecowas Trade and Mobilisation Scheme. These according to him add to about 30 per cent of the cost of the car.
He however stated that we should hold government responsible for the macroeconomic environment instead of holding private entrepreneurs responsible for high prices.
Mr. Ndu argued that if the company wants to look at the common man in terms of its charge on taxes, the responsibility should start from the government in terms of reducing the import duties on cars.
“As business operators charge to cover their costs, we are not responsible for those costs that are the inputs factors that determine the price. So if the government articulate a frame work where the cost reduces, the common man will enjoy. But I think we should hold the governments accountable for macroeconomic environment rather than hold private entrepreneurs responsible for high prises”.
He gave this charge during an exclusive interview with Businessworld in Lagos.
According to him, “availability of long term credit is a major challenge as most of the banks are more interested in financing very short term trading, especially oil imports which have shorter cycle than the leasing business.”
Another challenge he mentioned is the issue of regulatory environment which according to him is continually being addressed through the framework of the Equipment Leasing Association of Nigeria (Elan)
Mr. Ndu also stated that getting capable trained people motivated to serve is one of the challenges leasing companies face.
In its bid to improve transportation in all states across the country, C&I boss stated that the company partners Lagos State government and other states that are interested in private public sector partnership in the area of taxes and some buses systems and in future ferry business where it is applicable.
He noted that C&I has just commenced transport business with Lagos State government after a long time of planning and execution.
“We plan to make the Red Cab the primary form of flagship for the state in terms of taxes. We trust that it will go well”, he added.
On the charges, he said results from a number of factors which he listed to include prices of cars, cost of interest which is about 20-25 per cent, import duties, import surcharge, Vat, Ecowas Trade and Mobilisation Scheme. These according to him add to about 30 per cent of the cost of the car.
He however stated that we should hold government responsible for the macroeconomic environment instead of holding private entrepreneurs responsible for high prices.
Mr. Ndu argued that if the company wants to look at the common man in terms of its charge on taxes, the responsibility should start from the government in terms of reducing the import duties on cars.
“As business operators charge to cover their costs, we are not responsible for those costs that are the inputs factors that determine the price. So if the government articulate a frame work where the cost reduces, the common man will enjoy. But I think we should hold the governments accountable for macroeconomic environment rather than hold private entrepreneurs responsible for high prises”.
