FHAN seeks CBN's control on non-registered finance houses

FINANCE Houses Association of Nigeria (FHAN) has urged the Central Bank of Nigeria (CBN) to take more decisive action on the control of non-registered finance houses in Nigeria as part of its reform programme for the sub-sector.Besides, CBN should ensure that a bill which would mandate companies engaged in finance lease to operate through an approved finance houses is created.Speaking at the 2011 yearly meeting, the immediate past president of the Association, Eddie Osarenkhoe said there is need for the apex bank accelerate its planned reform of the sub-sector to enable it perform its role effectively and grow the economy.He lamented that most companies that offer finance leasing business in the country does not operate through registered finance houses where as finance leasing is suppose to be core finance houses business.'Finance lease is finance companies business. The CBN has a lot of big stick to weild here. They should create a bill for leasing. It is high time leasing law is put in place so that leasing will be a pure finance operation. CBN should take it up, the law should be sponsored by the apex bank.'Osanrenkhoe expresses optimism that once the apex bank holistically address the challenges confronting operator, the sub-sector would be transformed to a dominant financial vehicle in the sub-sector.He added that the future of the sub-sector remains promising going by the potentials in the Nigerian economy.The President of the Association, Mr Samuel Durojaye explained that as part of efforts to add value to the sub-sector, its administration would ensure that all members participate in the sub-sector reform programme.He added that the Association would encourage inter house transactions where finance houses can do business among themselves.'We need to exchange data on our business dealings, it will help us to do business together. You can call your colleague to participate in a business that worth 0ne million where you can not afford such amount alone not to discharge the customer on the basis that you can not afford the money.'We would propagate the course of finance houses to build credibility so that people would know that finance houses are there for them. We would look at processes and see how we can ensure safety of our funds so that people can see finance to support their businesses.'Reviewing its financial performance, the president explained that income increased to N12.96million from N11.8million achieved in 2009 while total expenditure grew from N9.35million to N10.72million.
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