Effective Credit System Critical for Telecoms Growth – Airtel CEO
Lagos, Nigeria; October, 5 2013: The Chief Executive Officer (CEO) and Managing Director of Airtel Nigeria, Mr. Segun Ogunsanya has identified effective credit management system as a critical factor for the growth of stakeholders in the telecommunications industry.
He made this submission in a paper, which he presented at the Mandatory Credit Management Specialist Conference of the Institute of Credit Administration of Nigeria (ICA) held in Lagos at the weekend, Saturday, October 5th, 2013.
According to Ogunsanya, organisations within the ICT sector must put in place efficient credit risk management systems in order to avoid collapsed or severe financial problems.
He added that poor credit management system could lead to reduced liquidity, increased costs of collections and credits, increased finance costs through extra borrowings and declined reputation of the company arising from failure to meet its obligations to its creditors, among other problems.
The Airtel boss also noted that effectively managing credit and extending same to customers operating in the Telecommunications industry can help attract many more customers inclusive of those who normally would not be able to afford the products.
According to him, “due to the competitive environment coupled with the growing demand for credit in the Nigerian market, creating credit lines for customers is necessary as only very few businesses can afford to operate without extending a form of credit to their customers”.
The event, which was held at the Protea Hotel, Ikoyi, Lagos, was attended by notable credit professionals including the Registrar/Chief Executive Officer, Institute of Credit Administration (ICA), Dr. Chris Onalo, Andy Ojei, Former Executive Director/Chief Credit Risk Officer, Zenith Bank, Adeniyi Akinlusi, MD/CEO Trustbond Mortgage Bank and Solanke Abimbola, Financial Controller, Airtel Nigeria,