Why commercial banks shy away from Nigerian ship-owners — Ogbeifun

The Chairman/CEO of Starzs Investments Company Limited, Greg Ogbeifun, has stated that indigenous ship-owners in Nigeria fail to get funding from commercial banks because many do not meet up with requirements laid down by the financial institutions.

Disclosing this to the Nigerian Tribune in Lagos recently, Ogbeifun stated that banks would make funds available to ship-owners if the feasibility study of any project presented is in good condition.

According to Ogbeifun, “If you go to the bank that you want to buy a global trading ship, if your feasibility study is right and if the bank can see your source of pay-back, they will give you money. Are you aware that I commissioned a ship just last year for $18.8m? Did you think the money came from my pocket? No, a Nigerian bank financed it. I cannot say banks are not willing to finance projects for indigenous ship-owners. I can only use myself as an example.

“Banks are doing it, but when you look deeply, you will find out that Nigerians are not very good at doing things right. If you are a ship-owner and meet the requirement for funding, Nigerian banks are ready to lend you money. People are building ships; people are buying ships.

“If somebody has failed in a business line or defaulted on an earlier facility taken from a commercial bank, and then leaves that business line or wants another facility from another bank, the banks will do their due diligence and refuse you funding. It’s that simple.”