Skye Bank Boss Identifies Growth Factors For Manufacturing Sector

Wytheville, Virginia (PressExposure) October 27, 2011 -- Group Managing Director/Chief Executive Officer of Skye Bank Plc, Mr. Kehinde Durosinmi-Etti, has identified critical policy initiatives and measures that are necessary to promote the growth and sustenance of the Nigerian manufacturing sector.

Durosinmi-Etti who noted that finance remained a pivot in initiating and sustaining investment, said access to finance by the country's manufacturing sector could be achieved by deepening the financial markets, efficient management of the various regulator-led targeted funds and respect for covenants.

Presenting a paper titled "Finance:Catalysts for promoting and sustaining the manufacturing sector" at the 2011 Business Luncheon of the Manufacturers Association of Nigeria (MAN), Ogun State chapter, in Ota on Wednesday, he said contrary to the requirement of long term funding for the real sector, the bulk of the funds in the financial sector are short term in nature.

He therefore called for sustenance of the reforms in alternative markets such as the capital and bonds markets, with a view to enabling them bridge the long-term funding gap.

Besides, the bank chief called for efficiency in the management of intervention funding initiatives like those set up by the Central Bank of Nigeria (CBN), Bank of Industry, and the others, in deploying specialized funding to certain sectors.

Durosinmi-Etti also canvassed respect for convenants so as to instill confidence in investors and assured of the safety of their investments. If this is done, it would improve the country's sovereign credit ratings and lower risks attributable to the economy.

Noting that while the reforms of our trade, investment and tax laws are critical, the banker said an improved political climate and continuous collaboration between regulators and operators in the financial sector need to be sustained to create a conducive atmosphere for investment.

He also called for strict adherence to the five-way test In granting loans for investment. He identified these tests as character, capital, collateral, conditions and cash flow which will guarantee that the owners of the company are people of high integrity who can be trusted to honour their commitments.

"As different tiers of Government seek to improve the economy by addressing infrastructural challenges, and promoting entrepreneurship, they should also seek to strengthen the financial markets and position it to provide an enduring avenue for valuable investment in the economy, especially in the real sector", he said For more information contact:

Head Office: Skye Bank PLC
3, Akin Adesola Street, Victoria Island, Lagos
Tel: + 234 1 2701600

About Skye Bank Nigeria PLC.

Skye Bank PLC has evolved into one of the top financial institutions in Nigeria, after its very seamless consolidation exercise in 2006.

It operates as a group that provides facets of financial products and services powered by a purpose built technological framework that supports the service delivery process to customers.

With a cumulative wealth of experience that spans over 50 years, Skye Bank is historically one of the oldest banks in Nigeria and West Africa. We are quoted on the Nigerian Stock Exchange with over 450,000 diverse shareholders with a shareholding structure that puts no more than 5% in the control of any one individual or company.

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Press Release Submitted On: October 27, 2011 at 8:06 am
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