The Lagos State Waste Management Agency, LAWMA, is in the final stages of securing a one billion naira working capital facility for PSP Operators.
The loan facility championed by Access Bank Nigeria Plc., which is expected to run on a single digit interest rate, will enable the waste managers run their operations smoothly and effectively, the MD/CEO, LAWMA, Mr. Ibrahim Odumboni said.
Speaking at the monthly meeting between the management of LAWMA and the PSP Operators under the umbrella of the Association of Waste Managers, AWAM, Lagos chapter, Mr. Odumboni said the loan facility is at the final stage of securement and in a few weeks, members of AWAM will start getting their account credited after successfully going through the necessary documentation and verification.
As a financial guru with years of experience in the banking sector both within and outside the shores of Nigeria, Mr. Odumboni says the structure of the loan is such that over 90% of waste managers working with LAWMA will be able to access and comfortable repay.
Mr. Odumboni said; “When you apply for the loan and you are submitting your documents, with the way it is structured it is not a matter of whether or not you are qualified but it is a matter of how much you are qualified to get.”
“Working capital loan is a short term loan unlike Asset loan, which is for long time lending. After 3-6months and you have done very well with your working capital loan, LAWMA will work out an asset loan for you with Access Bank for a single digit interest as well.”
“No matter the amount you are getting, the interest rate is single digit and that is inclusive of management fees and other fees. The interest rate cannot be higher than 9% and that divided by 12months is what you will be paying and that is very negligible. So please I want us to be honest and open about the amount needed by each and every one of us.”
“You only need two guarantors to qualify you for this loan and I can assure you that LAWMA and AWAM, will stand as guarantors for you. But ensure that when you get this money, utilize it purposefully.”
Lekan Adepitan, Regional Sales Manager, Access Bank, who was on ground to also speak with the operators, and respond to the numerous questions asked, assured the waste managers of the bank readiness to work with them to ensure they are well served.
However, he advised the PSPs to desist from using the working capital funds to acquire assets but efficiently utilize the funds to stabilize and grow their business.
“it is an Over Draft facility, OD, where you can borrow between 500 thousand naira and five million naira depending on the capacity of each PSP. Because it is an OD facility, once you access the loan and your account is credited, any amount you spend out of the money received is what the bank will charge you interest on. So for example, if you access 500 thousand naira, if at the end of the month you spent only 200 thousand naira out of the money credited to your account, the interest for that month will be based on the 200 thousand you have spent and not on the total amount you borrowed,” Mr Adepitan further explained.
Highlight of the meeting was the presentation of operating licence to 35 new PSPs by LAWMA boss, Mr. Odumboni.
With each company coming in with a minimum of two trucks, Odumboni is certain that the amount of trips per day will shoot up.
The management of LAWMA also commenced the distribution of contracts to existing PSP operators. With expiration of their old contract and the failure and refusal of the past administration to renew their contract, PSPs were left hanging and unsure of their future.
This new contract being issued out solidifies and assures the operators of the Lagos State government unwavering commitment to their growth and prosperity.
Mr. David Oriyomi, Chairman of AWAM, Lagos Chapter, applauded the governor of Lagos State, Babjide Sanwo Olu and LAWMA for placing their needs and requests as top priority.
“This is the nucleus of our struggle. Because when we went to court under the last administration, they told us our contract had expired and because of that we didn’t have any legal standing to struggle against that system. And today by His Grace, we have our contract with us,” Me. Oriyomi said.