Nigerians React to Stanbic IBTC’s Role In Company’s botched Expansion
For its role in the financial crisis currently bedeviling an indigenous company -Infinity Snacks and Beverages Limited, Nigerians are up in arms with a leading financial institution, Stanbic IBTC. Infinity Snacks and Beverages Limited is an Ijebu Ode, Ogun State, based manufacturers of Infinity Corn Flakes, Magic Crunch and other cereal products.
According to an impeccable source, Stanbic IBTC is alleged to have colluded with a foreign brand Kellogg’s, a global manufacturer of Breakfast Cereals, to frustrate Infinity Snacks and Beverages Limited from accessing a loan facility of N864, 420,000, the cereals manufacturing company got from the Bank of Industry (BoI).
According to investigation, Stanbic IBTC, a financial partner of Infinity Snacks and Beverages Limited, served as a guarantor through which the loan was given to Infinity but turned around to work against the local company in the interest of a competitor, Kellogs and its franchisee in Nigeria -Multipro Enterprises Limited, not only to return the Infinity loan with the bank but assist a similar loan for Kellogg’s.
At the end, Infinity Snacks and Beverages Limited could neither access the loan nor proceed on its proposed company expansion. Besides, the interest and various fees used to process the loan had eaten deep into the company finances. Today, Infinity Snacks and Beverages Limited that has for years remained manufacturers of corn flakes at friendly prices for many Nigerians, is struggling to survive.
During a visit to the community that hosts the company in Ijebu Ode recently, workers and contractors spoke glowingly on how Infinity has helped the economy of the area over the years and how the current situation is affecting them. They called on government to intervene in the impasse and save Infinity Snacks from closing down in order to protect customers Nduneche choice in the Breakfast cereal market.
‘’Much as one is being careful to comment on the Infinity Snacks Financial crisis because it is already in court, the sensitivity of the issue and the impact the company is making on the society have compelled us to react.
We see,Infinity in Ijebu Ode as our own company. The company has made breakfast cereals and snacks and other products that were once seen as food for the kids of the rich in the society, affordable for Nigerians. When we heard that the company was planning to expand its operation, we were excited but felt bad when the news hit that Stanbic IBTC has killed the dream. For those of us who are local contractors in the company, this is a set back as we all anticipated a brighter future,” a contractor, Engr. Gabriel Sobayo, said.
This is also the position of a distributor, who simply introduced herself as Alhaja Afusat. While describing the company as God sent to Ijebu Ode and its environs, she called on governments of Ogun State and Nigeria to intervene in the lingering crisis.
‘’Over the years, Infinity has benefited the Ijebu people and Nigerians all over the country in general by providing employment and supporting local businesses. The planned expansion would have brought additional prosperity to the local community but now, that plan is looking bleak and so is our hope for more profit. . We call on government and the bank involved to review the issue and help the company,’’ she said.
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