“It is time for both the private and public sector to take responsibility for the growth of the manufacturing sector and actively play their part” – Sulaiman
Can we start with some background about Sterling Bank? There is a proud history here
Sterling Bank evolved from the nation’s pre-eminent investment banking institution (NAL Merchant Bank) to a full-fledged commercial bank. Sterling Bank is a result of NAL Bank’s merger with four other banks – Indo-Nigeria Merchant Bank, Magnum Trust Bank, NBM Bank and Trust Bank of Africa during the 2006 consolidation of the Nigerian banking industry.
In furtherance of its growth strategy, the Bank consummated a business combination with Equitorial Trust Bank in 2011, positioning the enlarged entity to better benefit from the significant commercial opportunities in the evolving banking landscape and the Nigerian economy in general.
In a space of about 10 years, Sterling Bank has grown by over 600% in asset base and has also increased its market share from around 1% to over 3%.
What services offered by Sterling Bank are you most excited about at the moment?
Sterling Bank offers exciting products and services relevant to the retail, commercial and corporate market segments. Of these products, we are particularly excited about the SUPA account which is specially designed to cater to the unique financing needs of small, medium and micro businesses.
The product offers access to capacity building for start-ups and emerging entrepreneurs via the MSME academy. It also offers access to grants for business expansion, access to unsecured overdraft and term loans for asset(s) acquisition, project expansion and execution of awarded contracts. Working capital loans that do not require the MSMEs to provide tangible collateral, such as landed property are also available within this offering.
In addition to these, Sterling SUPA account offers credit cards for the owners/managers of MSMEs ranging from N500,000 to N1million to meet urgent financing needs. Free SMS & email alerts, free debit card (Verve debit cards only), mobile banking, internet banking, mobile payments are all features of the product.
We believe this product is unique and is a perfect fit for the differing needs of SMEs within the Nigerian economy, especially within the manufacturing sector.
We also have online payment solutions that can be customized to meet the distinct needs of our customers. These payments include salary and vendor payments amongst others.
There is also an opportunity for partnership with the Bank’s alternative finance business where companies can access structured funding at 10% to meet their unique needs.
Tell us more about your interests in Nigeria?
The Bank’s interest in the Nigerian economy is embedded in supporting economic growth and development on the back of sound financial intermediation and this, it has been doing successfully. With the current economic realities, Sterling Bank is positioned to support the Government’s drive for the diversification of the economy, particularly, growth of the real sector. Therefore, as Sterling Bank focuses on its retail penetration strategies, it concurrently ensures promotion of local content development. This is evident in our recent partnerships with a number of local manufacturers and we intend to support more of such businesses.
What particular interests does Sterling Bank have in the Nigerian manufacturing sector? Are you involved in particular manufacturing projects?
Sterling Bank has credit facilities that can serve the various subsectors within the manufacturing industry. We have supported several manufacturing companies ranging from food and beverages companies to steel, pharmaceutical and automobile companies amongst others. Our scope of coverage in the sector is not limited.
How excited are you about Nigeria as a future manufacturing hub?
Manufacturing in Nigeria has been neglected for too long due to the infrastructural gap and reliance on imported products. The recent downturn in the global oil market with the resultant impact on the foreign exchange earning capacity of the country has provoked a look inwards towards enhancing local manufacturing. To this end, we are optimistic that given our population advantage, an array of intellectual assets, as well as Government support to resuscitate the industry, manufacturing in Nigeria will blossom to serve local needs and regional African markets.
What in your view are the challenges to develop Nigeria as a manufacturing centre of excellence?
Manufacturing is largely driven by infrastructure and this is the major challenge facing the industry in Nigeria. Infrastructure cuts across power, road network, machinery etc. The fundamental challenges of power supply, in particular, pose a significant threat to developing the industry. Appetite for foreign goods, poor regulations, unavailability of raw materials, an imperfect legal system, lack of skilled manpower and unavailability of sufficient funding are also challenges militating against the industry.
What is your vision for this industry?
Growth and expansion of our business partnerships in the industry enabling manufacturing to contribute significantly to the nation’s revenue base and GDP at large. Nigeria should be the manufacturing hub for sub-Saharan Africa driven by scale.
What are you most looking forward to at the MAN Expo this year?
Networking and business partnerships
What will be your message at the MAN Expo this year?
It is pertinent to emphasize the need for patronage of the local manufacturing industry as this is vital to the sustainable growth of the local economy. It is time for both the private and public sector to take responsibility for the growth of the manufacturing sector and actively play their part. The diversification of the Nigerian economy is not negotiable – the development of the real sector including agriculture value chain, manufacturing, etc. is the vehicle to achieve this. It is also important to address the fundamental issues facing the manufacturing industry through structured public private partnerships in order to create an enabling environment for businesses to thrive. It is time to act and develop sustainable businesses that can drive the growth of the nation. At Sterling Bank, we are strongly committed to contributing our quota to building a sound manufacturing base in the country.
