Oceanic Spearheads Poverty Alleviation Efforts

from All Africa

This Day (Lagos)

By Abimbola Akosile
Lagos

Efforts of Oceanic Bank International Plc in enhancing the standard of living of Nigerians through eradication of poverty has been lauded by the National Co-ordinator of the National Poverty Eradication Programme, (NAPEP), Dr. Magnus Kpakol and the Managing Director of the Bank of Industry (BOI), Ms Evelyn Oputu.

While Kpakol described Oceanic Bank as the leading financial institution in the country in the fight against poverty and mass unemployment in the country, Evelyn Oputu lauded the bank's passion for the development of the real sector, which has positively affected the development of small businesses in the country.

According to Kpakol, Oceanic Bank is supporting the poverty eradication scheme of the government by making funds available for the micro-credit and capacity acquisition of the masses.

Specific instances of the bank's involvement in the poverty eradication scheme, according to Kpakol, include Akwa-Ibom State Government and Oceanic Bank partnership arrangement to raise N1.5 billion to boost poverty eradication programmes in the State.

He noted that the same level of partnership and cooperation was replicated in River State where the state government and the bank successfully raised a whopping N2 billion to tackle poverty in the state.

Kpakol urged other financial institutions to emulate Oceanic Bank by providing concrete financial support towards poverty alleviation scheme being championed by NAPEP.

Executive Involvement

The bank's Managing Director-Chief Executive, Dr. Cecilia Ibru has noted that for Nigeria to join the rising economic powers, emphasis must be placed on the growth and funding of the small and medium scale enterprises (SMEs).

Cecilia Ibru, who also chairs the Bankers Committee sub-committee on SMEEIS, has also assured that Oceanic Bank would make funding available to the sector, in a bid to build a stronger and virile Nigeria.

To achieve that, she disclosed that the bank has set up a new department called 'Development Finance' charged with the responsibility of identifying development related projects for funding.

She claimed Oceanic Bank has always known that without the development of the small and medium scale enterprises, there is no way that the economy can move forward in terms of industrialisation .

Dr. Ibru recently assured that the bank, would continue to fund small industries because of their importance in growing the economy.

According to her, "we would continue to support the small and medium scale entrepreneurs because whoever is big today was at one time small. At that small stage, at that small beginning of the business, that is the time you begin to identify those who have the necessary integrity; those who have the necessary skills, those who have the necessary wisdom and those who have the ability to grow".

Small-Medium Scale Support

Oceanic Bank Plc has equally taken a lead in the area of franchise financing, with a desk set up for the purpose of financing same in the country.

Dr. Cecilia Ibru who spoke on this development while presenting a paper on 'Financing Your Franchise Through the Small Medium Industry Equity Investment Scheme (SMEEIS)', said Oceanic Bank has recognised the potentials of franchising and would effectively support it with adequate financing.

She enjoined the franchise prospects to come up with bankable proposals in order to access the SMEEIS funding; and advised them to ensure that their proposals cover such areas as training, mentoring, technical advice, marketing support, project development and analysis.

According to her, "Oceanic Bank recognises the pivotal role of SMEs in the economic growth and development of the country. The bank is at the forefront of SME financing under the SMEEIS".

She mentioned Nigerian Army Small Drugs Manufacturing Unit (NASDMU) Lagos, Adosteno Nigeria Ltd., Lagos (Tissue Production), Ogekpo Printing Press, Apapa, Lagos (printing), Atobi Metals, Ibadan (metal can production), Larnagold Ltd., Calabar (industrial tailoring), Golden Astoria Hotels, Abuja, FCT (hospitality), among the projects the bank has financed.

"This proactive record in SMEEIS has seen Oceanic Bank winning the Central Bank of Nigeria annual Award for The Best Bank under the Small and Medium Enterprises Equity Investment Scheme (SMEEIS) twice in the past four years (2003 and 2006), making Oceanic Bank the country's leading bank in SME financing", she said.

The bank, according to her is also supporting SMEs through the mix of equity and debt under the Scheme specifically handled by the bank's Development Finance Department.

To her, SMIEIS is entrusted with funding of SMEs for the country's rapid industrialisation, sustainable economic development, poverty alleviation and employment generation.

Broadly, the scheme is expected to facilitate flow of funds; assist in the development of local technology; stimulate economic growth; promote indigenous entrepreneurship and technology; generate employment; and ensure increased productivity, income re-distribution and production of intermediate goods.

So far, she revealed that about N39.1 billion have been set aside by the banks, out of which N18.7 billion has been invested in 259 projects all over the country as at March 2007.

Enhancing Saving Culture

The bank chief also attributed the bank's introduction of a new product, the Oceanic Easy Save Account, to its determination to develop the country by encouraging savings culture.

With the product, all that is required of a customer is to walk into any branch of the Bank with proof of identity and open an account without any initial deposit; thereby effectively removing bottlenecks associated with savings.

The product basically is meant to make savings easier for Nigerians and ultimately to encourage savings culture among un-banked Nigerians.

The Easy Save account not only saves time, it also offers convenience and security of knowing that the customer has an account with the bank without any deposit and that all that is required is for the account to be funded within 60 days of opening.

The new account is designed as a product that is accessible to all cadre of people within the economy to act basically as a stress free account with minimal account opening documentation requirements.

Aside the no documentation feature of the products, other qualities of the account include: no restriction on the number of withdrawals on a monthly basis and zero account opening balance. However account must be funded to a minimum of N500 within 60 days of opening account.

Boosting the Oil Sector

Oceanic Bank provided the needed financial support to actualise the Global Fleet Oil and Gas company's vision.

The company commenced operations in 2003 as an oil trading company with three (3) filling stations, with a vision of establishing a minimum of three hundred (300) filling stations across the country in three years, taking advantage of the Federal Government's policy on liberalisation of the down stream sector of the petroleum industry.

Over the last three (3) years, the company has built a supply and distribution channel for Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) that is prominent in the downstream sector of the petroleum industry.

Currently, Global Fleet has acquired over two hundred and twenty (220) filling stations out of which about one hundred and seventy (170) is fully operational, currently under the African Petroleum Plc network. In addition, the company has emerged as a major player in terms of supply and distribution of petroleum products in Nigeria.

NetPost for Grassroots Banking

To move financial services closer to the grassroots, Oceanic Bank is opening more service outlets, using 100 designated post offices across the country to further complement its already existing 160 branches.

The bank's partnership with the post offices has increased its presence to 260 locations across the country. Reports from the bank indicated that normal banking services would be rendered in all the designated post offices.

The bank's head of retail banking, Mr. Akin Asalu said Oceanic Bank's plans to address the needs of its customers all over the country by taking its services to their doorsteps.

"We are determined to ensure they fully enjoy our service delivery. The partnership with post offices basically is to get closer to them and ensure they can transact their banking businesses with ease". To also bring banking conveniences to its customers, Asalu revealed that the bank will deploy 200 automated teller machines (ATMs) to all its branches nationwide. The ATMs will be deployed to the branches and merchant outlets in four stages.

Already, about 40 of the cash machines are installed in some strategic branches of the bank and merchant outlets, with the number billed to increase to 60 soon.

Building Real Sector

Small and medium enterprises (SMEs) are generally known to play a crucial role in driving economic growth in both developing and developed economies. They generate more new jobs than large firms, incubate innovation, products, and business methods.

The establishment of the equity scheme in Nigeria in 2001 by the banking community under the auspices of the Central Bank of Nigeria and the Bankers' Committee, was basically informed by dearth of long-term funding, high interest rates, and poor business management skills which have inhibited the realisation of the potentials of the small and medium scale industries as the engine of growth in the economy.

All banks in the country, through the scheme, are expected to set aside 10 percent of their profit before tax annually for equity investments in small and medium industries. This arrangement is meant to eliminate the burden of interest and other charges associated with normal bank lending.

Since the introduction of the scheme in the country however, Oceanic Bank has been at the forefront of igniting growth of the real sector. The bank's contributions to the real sector in relations to its assets base and shareholders' funds gave it the top prize in real sector financing in 2003, the first of its kind in the Nigerian financial sector.

Setting the Right Tone

Oceanic Bank Plc, arguably one of the strongest banks in Nigeria, is setting a much needed tone for economic empowerment and poverty alleviation.

Although some other banks are equally involved in grass-roots emancipation, a leaf must however be taken from the bank's consistent preference for nation-wide empowerment, whether at the grass-roots or in urban areas.

Despite the bank's partnership with huge concerns like Oando Plc., an industrial park in Osun State, and the Murtala Mohammed Airport terminal project by Stabilini Visiononi, it has not shied away from supporting small-holders and the masses.

If all banks are to focus less on profit margins and quarterly report figures, and concentrate more on lifting a larger chunk of Nigeria's impoverished masses out of ravaging poverty, the course may well be set for a quicker economic recovery and rapid growth. The accruing benefits transcend the banking sector. Kudos to Oceanic Bank.