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Finance companies should embrace sound risk management policies – MD

The Managing Director of Credite Capital Finance and Investment Ltd., Mr Segun Ogunleye, on Thursday called on finance companies to embrace sound risk management policies to mitigate various challenges in the financial sector.

Ogunleye on the sidelines of the Second Annual General Meeting (AGM) of the company that the major challenge faced by finance companies was defaulting of loans by lenders.

He said that sound risk management policies should be in place to ensure that due diligence and appropriate risk management parameters were properly followed.

“The Central Bank of Nigeria (CBN) has come up with a lot of programmes that will help finance companies in the sector by setting up a National Collateral Registry.

“Defaulting has always been a challenge in our industry, unlike banks where one must have a Certificate of Occupancy (C of O) and other forms of collateral.

“Some of these SMEs do not have strong collateral and they need loan, and they need to make a commitment.

“The CBN has made it easier for operators that if we take unregistered titles, we can go and register it now and make it legitimate at the National Collateral Registry,” Ogunleye said.

He said that his company had provided working capital facilities to numerous SMEs to improve their working capital needs and other operating requirements.

According to him, the organisation has made major contributions in the haulage, hospitality and medical sectors.

“We grow businesses in as much as we meet our risk management criteria. We are partners in progress with our customers.

“We are not just a lender, we are so much interested in their business because we come together to look at the dynamics of their business,” he said.

Earlier in his address of welcome, Ogunleye recalled the humble beginnings of the company.

“The journey of this company started like a presentation like this a few years ago, and individuals agreed to invest in an idea.

“I will like to thank the shareholders. We are taking this company to the next level. The plan is for this organisation to be a one-stop supermarket offering other financial services.

“There are plans to open branches outside Lagos as well as a strong microfinance bank. Plans are also underwater to apply to the CBN for a bureau de change licence.

“One thing we are noted for is that we try to see our customers as partners in progress, that is why we will continue to be in business,” Ogunleye said.

Mr Tokunbo Abudu, the Chairman of Credite Capital Finance and Investment Ltd, in his keynote address, said that the company had continued to overhaul its operations by keeping abreast of new technology and employing highly skilled professionals.

“During the year under review, the company moved to its newly acquired property, which is meant to position us for better public perception, confidence and results.

“Also, additional funds have been injected into the company through shareholders by way of Right Issues which was 100 per cent subscribed in 2017, but awaiting final ratification and approval by our regulator.

“The Central Bank of Nigeria (CBN) gave its approval in October 2018 after verification by the Inspection Team of the establishment,” he said.

Abudu said that the organisation, through its Corporate Social Responsibility (CSR), has been supportive of the educational sector, religious organisations and orphanage homes.

Credite Capital Finance and Investment Ltd is a licensed CBN financial company that provides financial services and leasing services to SMEs.

At the AGM, it was reported that the company recorded an annual turnover of N248million and a profit before tax of N63.9million.

It paid tax of N10.4million, had a profit after tax of N53.5million and a dividend of N12million.

 

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