The Development Finance Department of the Central Bank of Nigeria (CBN) and Nigeria Association of Auctioneers (NAA) have partnered on better ways to dispose and recover loans on movable assets in the country.
This was made bare during a courtesy visit by the Deputy Director/Register, Development of Finance Department of CBN, Mr Bulus Zgabawa Musa and his team to the national executives of the auctioneers under the leadership of Alhaji Aliyu Kiliya in Abuja.
He explained that the department seeks partnership of the Nigeria Association of Auctioneers on recovery of loans granted on movable items amongst others.
According to Mr Musa, the department is passionate about the project in the economy and any other thing that is affecting the regulation.
Responding on behalf of the auctioneers, the General Secretary of association, Engr. Isibor Abhulimen, noted that if the body is taken as a critical stakeholder, they will advise on how valuations are done to get the best out of an asset.
For example, he said, “you want to value your assets, nobody has the best idea to give you on the value of an asset other than an auctioneer because he does every other day.”
Engr. Abhulimen pointed out that when banks collateralize an asset, they quickly give out loans for fixed assets because there is always a playback at the other end.
According to him, that playback might even be the interest for giving back that loan in the first instance and when that is done, they don’t even care how the lender is going to pay back even if the lender can pay back on fixed assets.
The General Secretary said sometimes some national assets are sold far under the value and the government doesn’t get the targeted amounts.