American bank, dredging firm boost local construction

The dredging and drilling industry in Nigeria is set to receive a boost following the initiative of the Nigeria-American Chamber of Commerce in collaboration with US Commercial Service of the US Consulate and Kofa International Company of the United States. At a one day seminar titled: “US equipment and raw materials finance to Nigeria” held at the Golden Gate Restaurant in Lagos, stakeholders from both Nigeria and the United States gathered and deliberated on financing and sourcing of equipment abroad for the dredging and drilling industry, especially for those in the oil and construction industry.

Under the scheme, an American bank, the Manufacturing and Trade Bank (M&T Bank) in collaboration with some local banks will be financing the purchasing of equipment from the United States. According to Mr. Benjamin M. Akwete, the Vice President of the Baltimore , United States-based M&T Bank, the local financial institutions in Nigeria will provide guarantee on behalf of Nigerian buyers of US goods and services. In attendance were representatives of Nigerian banks such as UBA, Skye Bank etc, etc.

The M&T, according to the Ghana-born vice president, will typically consider financing arrangements that offer reasonable assurance of repayment. Towards this, the US Commercial Service will be involved in verification of Nigerian firms that are wishing to do business with American companies and finance institutions. According to Mr. Joseph Olatunji, a commercial specialist at the US Commercial Service, his unit serves as a veritable link in identifying firms in Nigeria and provide legitimacy to their association with business associates in US. He commended the initiative of Kofa International Company of US whose president, Mr. Ganiyu Ademola Dada, is the facilitator of not just the seminar, but also the export-import soft loan which M&T Bank will offer.

Mr Dada said the essence was to create an environment of using American fund to create wealth in Nigeria by providing low cost capital to Nigerians. He gave as good example Mr. Cosmas Maduka, president of Coscharis Motors who has been able to do good business with ABRO Industries Inc., a US-based firm which was then looking for ways of increasing its export sales of vehicle-care products to Nigeria in 2003. Today, Coscharis Motors, with $10-12 million in annual purchases, is the largest customer of ABRO Industries. One of the American firms offering equipment facilities is the Dredging Supply Company (DSC) Incorporated of US whose international sales director, Mr. Charles Sinunu made a power-point presentation of arrays of drilling and dredging equipment which Nigerian firms can get through the scheme unfolded at the seminar.

Representatives of medium scale firms in the construction, drilling and dredging industry were told that DSC would not only be selling equipment, but also providing the man-power needs for maintenance of such equipment which included Barracuda portable dredge, Marlin Underwater pump mining dredge, shark portable dredge among others.
Source : http://www.tribune.com.ng