Posts Tagged ‘nigeria’
Posted on December 11, 2009 - by James
Nigerian MFBs Face Crisis Due to Increased Yuletide Withdrawals
Nigerian microfinance banks (MFBs) are facing difficult times as they manage their liquidity positions and also endeavor to cope with the increased yuletide withdrawals by their customers. The season of Christmas is a period of increased expenditure for many households. The case of individuals who have held their savings at some of the microfinance banks mired in crisis adds to the worries that some Nigerians may have in this forthcoming yuletide season.
One MFB staff member, who pleaded anonymity, disclosed that withdrawal has intensified since the Sala celebration, saying “Customers are withdrawing their money and the banks closed their door against us. It is a big challenge. We do not know what to do.”
But Uche Ubani, managing director, Peniel Microfinance Bank Lagos, believes that banking is a continuous process: as some customers are withdrawing their money, others are depositing. He explains that, “As long as the process continues, I do not see any challenge”. He sees the development as being more challenging to those who are already having problems.
Posted on November 20, 2009 - by boris
Nigeria: NAMFBIN and AMBN sign a MoU to form the National Association of Microfinance Banks…
The National Association of Microfinance Banks in Nigeria (NAMFBIN) and Association of Microfinance Banks in Nigeria (AMBN) have signed a Memorandum of Understanding (MoU) to form the National Association of Microfinance Banks (NAMB), which is the only lawful association empowered to conduct micro finance banking in the country.
At an extra-ordinary general meeting in Lagos, NAMFBIN and AMBN, with Central Bank of Nigeria (CBN) officials coordinating, they pledged to work towards the realisation of the MoU.
Former president of NAMFBIN, Otunba Olatunde Olowu, said that microfinance banking was a very important sector of the economy that could provide the needed capital and economic growth in rural communities.
Source: http://allafrica.com/stories/200911171189.html
Posted on November 17, 2009 - by boris
Nigeria: Obi launches N2.5 billion microfinance plan…
Anambra State has scored another first by the launching of the 2.5 Billion Naira microfinance scheme, which is a collaborative efforts between the State Government and Access Bank Plc.
Performing the take-off ceremonies for the Scheme at the Women Development Center, Awka, the Governor said that the projects was part of the resolve by his administration to empower the people towards self reliance.
He said that such programmes and positive empowerment, different from those who understood empowerment as the sharing of the resources of the State, would go a long way to contribute to the sustenance of the socio economic programmes of the Government.
Source: http://allafrica.com/stories/200911100506.html
Posted on October 22, 2009 - by boris
Nigeria: Operators of MFBs want the date of re-capitalization extended…
Some operators of Microfinance Banks (MFBs) want the Central Bank of Nigeria (CBN) to extend the date of re-capitalization exercise in the subsector.
The Managing Director of OPENGATE microfinance bank Nureni Yusuf said this in an interview with Daily Trust.
He said: “In as much as the policy is good and welcome, we still want to appeal to the apex bank to give a grace of about two to three years to capture the payment.”
The Acting Director in charge of other financial institution department of the CBN Olufemi Fabanwo advised the microfinance banks last month to increase their capital base above the present N20 million to N200 million.
Read more
Source: http://allafrica.com/stories/200910210417.html
Posted on October 21, 2009 - by boris
‘Fidelity Plc’ of Nigeria to offer banking service including check clearing to ‘Support Microfinance Bank’…
Support Microfinance Bank, a microfinance institution in Nigeria, has entered a “strategic and clearing partnership” with Fidelity Bank Plc, a major universal bank (capable of banking and investment activities) in Nigeria. Customers of Support Microfinance Bank will now be able to receive banking services, including the clearing of checks, from all 140 branches of Fidelity Bank Plc .
According to Mr. Sunday Akhamiokhor-Fred, Managing Director of Support Microfinance Bank, the move came about because it is “generally accepted” that microfinance banks cannot clear checks and because Support Microfinance Bank “does not have many branches” compared to Fidelity Bank Plc .
Mr. Akhamiokhor-Fred therefore sees this deal as a way to “reach numerous customers through other means outside setting up branches” . The deal was confirmed by Fidelity Bank Plc as the bank acknowledged that they will honor checks issued by Support Microfinance Bank.
Read more
Source: http://www.microcapital.org/microcapitalorg-story-fidelity-plc-of-nigeria-to-offer-banking-service-including-check-clearing-to-support-microfinance-bank/
Posted on October 2, 2009 - by boris
Penn students help young Nigerians through YouthBank…
This summer, a group of Penn students established a transatlantic venture to Nigeria to aid urban youth through a new microfinance group, YouthBank.
YouthBank, a group started by graduates from the Huntsman Program – 2007 alumna Clara Chow and 2008 alumna Joyce Meng – is an international group dedicated to helping urban youth all over the world. The idea was born in 2007 and has been refined since then. This past summer, the project was finally actualized when the organization sent six students to Lagos, Nigeria.
YouthBank creates job opportunities and relevant training for young people. The profit the organization earns from these jobs goes toward funding for microlending, which is used by the young workers to launch their own businesses after.
Source: http://media.www.dailypennsylvanian.com/media/storage/paper882/news/2009/10/02/News/Penn-Students.Aid.Young.Nigerians.Through.Youthbank-3791132.shtml
Posted on October 1, 2009 - by boris
Nigeria: Microfinance banks threatened by calls for increase in capital base…
The banking industry may face another liquidity strain if microfinance banks are to implement the Central Bank’s proposal to shore up their capital Base.
“That would be very difficult, especially for now because of what is happening in the financial industry,” said Francis Akpudi, managing director, Solace Microfinance Bank, Warri, Delta State.
“Already, we are finding it difficult to even get deposits. Maybe when the whole present financial situation is more relaxed, maybe, but for now, it would be very difficult to achieve that,” he added.
He explained that though the idea is a good one, it will be very challenging meeting it in view of the financial situation in the country.
The Other Financial Institutions Department (OFID) of the Central Bank of Nigeria (CBN) on Monday, announced that microfinance banks (MFBs) should increase their capital base above the current N20 million.
Source: http://234next.com/csp/cms/sites/Next/Money/Finance/5464789-147/story.csp
Posted on September 16, 2009 - by boris
AfDB has agreed to finance the $30 million Helios Telecom infrastructure project…
The African Development Bank (AfDB) has agreed to finance the $30 million Helios Telecom infrastructure project which consists of expansion of a shared telecommunication infrastructure network in Nigeria .
The provision of shared facilities by Helios Towers Nigeria (HTN) would ultimately provide the opportunity for wireless telecommunication operators to roll out their networks for a larger geographical coverage, while at the same time reducing their capital investments and operating costs.
By expanding the shared telecommunications network in Nigeria , the project will contribute to improving the business climate and stimulate non-oil growth and job creation, through private sector development.
Source: http://www.businessdayonline.com/index.php?option=com_content&view=article&id=5069:afdb-earmarks-30m-for-helios-collocation-project&catid=77:telecoms&Itemid=337
Posted on September 9, 2009 - by boris
Nigeria: Many headaches of micro finance customers…
When micro finance banks were introduced to help small scale entrepreneurs enlarge their businesses, people were happy over the idea. However little did the citizens know especially market men and women about their longevity in the banking industry?
Some micro finance banks go to market places and encourage the market women to save money on a daily basis with the promise that when the deposits reach certain amount, depositor could get loan to do business.
However, some of these banks now have problems and could no longer pay depositors their money hence hiding the truth from their customers who ignorantly continued to patronize them by depositing their money with them.
Source: http://allafrica.com/stories/200909080741.html
Posted on August 28, 2009 - by boris
Nigeria: Umuchinemere Procredit Microfinance Bank opens office in Umana Ndiagu…
Umuchinemere Procredit Microfinance Bank (UPMFB), Enugu, in keeping with the microfinance policy of empowering the ‘active poor’, has opened a Credit Relations Office (CRO) in Umana Ndiagu Autonomous community, Ezeagu LGA, Enugu State.
According to the bank’s management, “UPMFB is out to give life to the rural people, by helping them to grow economically. The CRO will provide normal banking services and products, such as current, savings and deposit accounts, loans, asset management and services, amongst other.”
Source: http://allafrica.com/stories/200908280117.html
Posted on August 24, 2009 - by boris
The Kaduna Polytechnic has launched Kadpoly Microfinance Bank in Nigeria…
The Kaduna Polytechnic has launched a microfinance bank tagged: Kadpoly Microfinance Bank Limited, to serve both the community of the institution and its host communities.
Commissioning the bank, the rector of the institution Engineer Danjuma I. Isah said the bank was established to reach out to all segments of the community by availing them avenue to save their money and as well get soft loans without going through the excruciating experiences of the big banks.
“The bank is a true community bank as it is sponsored and owned by the community and is placed in the hands of seasoned and dedicated staff who are working round the clock to ensure that customers problems are solved within the shortest time,” he said.
Source: http://allafrica.com/stories/200908210339.html
Posted on July 17, 2009 - by boris
Alitheia Capital to grow capacity in microfinance sector…
Vanguard News posted:
The Vice President of Alitheia Capital, Mr. Andre Wenger, has said that Nigeria’s share of the $50m fund pledged by the organisation for microfinance institutions in Ghana and Nigeria would be spent in providing start-up capital, assisting transforming NGOs and help grow microfinance institutions so as to attract more foreign grants.
Alitheia Capital, a leading provider of financial solutions and venture capitalists, in alliance with its foreign partners, Dutch-based Goodwell Investments BV and Ghana-based JCS Investments, in May, announced a $50m (N7.4bn) fund which is aimed at lifting microfinance institutions (MFls) in Nigeria and Ghana.
Speaking to Vanguard, Wenger said that Nigeria’s share of the fund is about $34m and like any venture capital fund, Alitheia is seeking to invest such fund in MFIs that have potentials and they would be considering three areas of supporting MFIs by providing capital and technical assistance; capital for transforming and/or start-up MFIs and on the ground support to management team; while making available access to the expertise and a global network of microfinance practitioners.
(more…)
Posted on June 1, 2009 - by Gavin
Why we are setting up academy for microfinance – LAPO BOSS…
Business Day Online
LAPO, one of the nation’s foremost microfinance institutions, recently unveiled an academy for Microfinance and Enterprise Development in Benin City , its operational headquarters. Godwin Ehigiamusoe, the company’s executive director, tells IDRIS UMAR MOMOH, the rationale behind the initiative among other issues. Excerpts:Decision to establish academy
The decision to establish the academy was informed by the primacy of training to the development of any sector. For microfinance, the need to invest in capacity is compelling in the sense that, it is a fledging industry at least in Nigeria . Actors in the microfinance sector will readily admit that a major challenge to microfinance practice is lack of trained personnel. We believe we are well placed to make contributions to the development of the sector drawing on our long involvement in the sector.
Targets
It is important to note that the activities of the academy date to 1996 when LAPO, in preparation for the scaling-up of its operations, established what is known as LAPO Development Services to train its staff. We simply transferred the activities of the company to the academy as we improved our training facility. Therefore, LAPO is the prime client of the academy. Also for obvious reason of our experience in microfinance, we receive several requests from microfinance banks and institutions for training and technical support. The academy with its enhanced facility will be able to satisfy these requests. (more…)
Posted on May 5, 2009 - by Gavin
Micro Finance: Between profits and social impact…
Business Day Online
The December 2005 policy statement establishing microfinance banks in Nigeria was laudable and well-intentioned, and still is. There are now over 800 microfinance banks (MFBs) in Nigeria today. The microfinance industry is fast becoming the ‘next frontier’ for the financial services industry. Universal banks are creating microfinance units on their existing platforms while independent operators in urban centres are erecting glass edifices in high-end locations to establish presence. In fact, there is an ongoing initiative by a group of financial operators (including some big MFBs) to establish an ‘inter-bank’ market for the microfinance industry.
We caution that practitioners and regulators need to be reminded that the microfinance industry is not the typical business enterprise – it is a double-pronged platform that must, of necessity, equally emphasize profitability and social impact. Otherwise, the end result is going to be further alienation and resource-deprivation of the poor that could lead to revulsion against the industry.
The industry should view microfinance not as a product line but a platform that leverages their relationships with the poor to develop and distribute an array of products and services – financial and non-financial! It is important that MFBs discover ways to integrate their financial offerings with non-financial services for the poor like education, telecommunication, healthcare, shelter and infrastructure, otherwise, profitability will only be short term and social impact will be negligible. (more…)
Posted on May 5, 2009 - by Gavin
African Central Bank Hq for Nigeria…
Vanguard Online
Nigeria is to house the headquarters of the proposed African Central Bank by the Africa Union, thus boosting the country’s bid of becoming the financial hub of Africa with Lekki as its corridor.
This was disclosed yesterday by President Umaru Yar’ Adua at the opening of the 50th anniversary ceremony of the Central Bank, in Abuja.
The President, who was represented by the Minister of Finance, Dr. Mansur Murtar, at the ceremony, said the African Union had asked Nigeria to host the headquarters of the African Central Bank.
He also commended the stability in the Central Bank in its 50 years of existence saying, “I am delighted to note that even before the global crisis, I had launched the Financial System Strategy 2020 (FSS 2020) in June 2007 championed by the Central Bank.
“I very much look forward to the fast-tracking of the implementation of this strategy, which aims to ensure that Nigeria emerges as an international financial centre as well as Africa’s financial hub by 2020.
“As you illuminate the future, you should be conscious of the evolving regional and global dimensions of our monetary and financial system. We have committee to a single currency in the West African region, and ultimately a single currency in Africa. (more…)
Posted on April 24, 2009 - by Gavin
French agency to invest N33b in Nigeria’s power sector…
Nigerian Guardian News
Agency for French Development (AFD), has unveiled plans to commit over N33 billion ($200 million) into the Nigerian economy.
The money is expected to be invested into the power sector, mainly for transmission and distribution projects, and for the building of an eye hospital in Lagos, to cater for the poorest people in Nigeria.
Besides, the agency will also, through public private partnership arrangement, embark on water supply, transportation projects.
Delivering a paper titled: “Sustainable and Inclusive Development” at a breakfast meeting organised by Franco-Nigerian Chamber of Commerce recently in Lagos, AFD representative, Mr. Luc Bonnamour said that the agency shall embark on the financing of various sovereign projects in the country this year.
These projects, according to him, would mainly be the national urban water project, the public/private partnership (PPP) initiative, the rural access and mobility project, the growth employment and markets in states project, and the Lagos urban transport projects. (more…)
Posted on April 23, 2009 - by Gavin
Nigeria: Labour Ministry Tackles Unemployment…
All Africa.com
Once during an interview with Labour Vanguard, Labour Minister, Prince Adetokunbo Kayode vowed that the National Employment Summit which had been locked up in the files in the Ministry of Labour would be held soon.
He was determined that the ministry under his leadership would not be known for mediating in strike disputes alone, but would make a more positive impact by developing strategies for job creation.The minister said this had become necessary because of the global meltdown which had resulted in loss of jobs. He has kept his words.
From April 21 to April 23, the Ministry of Labour in collaboration workers organizations, private sector employers, the informal sector, representatives of state governments, local governments etc will fashion out strategies for creating jobs in the various sectors of the economy.
The International Labour Organisation (ILO) is supportive of the Summit and will provide technical assistance. The theme of the Summit is “Meeting the Employment Challenges of the Global Economic and Financial Crisis.” (more…)
Posted on April 6, 2009 - by Gavin
Nigeria: Impact of Global Crisis On Banks…
All Africa.com
Lagos — Though I had expected that no sector of the Nigerian economy will be completely shielded from the impact of the unprecedented crisis ravaging the world financial system but I had thought that the impact on the banking sector will be to the extent that some aspects of their operations would be negatively affected but most certainly not of a systemic proportion.
I hold this view rather advisedly as someone who had not only followed the progress of the Consolidation program but someone who was infected with the passion for the program ab initio and was therefore in the trenches in defence of the program when the general trend was to doubt its feasibility and have come to expect that the banking sector is so robust as a result that I was not expecting any of the banks to be in danger as a result of the global financial crisis. But was I rather surprised when one of my brother knights on our way back from Agenobode to attend the burial ceremony of the mother of Egbert Imomoh our Sub-Council Grand Knight came to me to ask after the health of Intercontinental Bank. (more…)
Posted on March 25, 2009 - by Gavin
Micro-finance business and its relevance in Nigeria…
Daily Triumph
Poverty is usually, if not always, understood as low level of income per household where individuals and households are deprived of or lack basic needs such as private consumption needs (shelter, food and others) and community needs (sanitation, access to financial services, illiteracy) to live a comfortable life. Thus, reducing poverty or eradicating it is about raising the income and quality of life of these households.
Microfinance, as the tool that reaches these households, has the best mechanism towards eradicating poverty. Microfinance, like any other economic development activity, represents an upward directional movement of society’s growth “from lesser to greater levels of energy, efficiency, quality, productivity, complexity, comprehension, creativity, mastery, enjoyment and accomplishment”. (GorryJ. R. Macfortone and Asokan W 2). It is an activity that touches the lives of millions of people. Therefore, the sheer numbers involved and complexity of communities, call for effective engagement partnerships and collaboration if anything meaningful is to continue to be achieved.
To create awareness on the relevance of microfinance is not only appropriate, but also timely at this stage of the development of microfinance in our financial landscape. It is timely at this point and time because of the impact of the global meltdown on the Nigerian economy. As the Naira depreciates and buys less input necessary for production and growth, the need for a financial strtcture that provides more financial power to as many people as possible both in the rural and urban areas to promote produaion cannot be over emphasized. (more…)
Posted on March 25, 2009 - by Gavin
Nigeria: Kaduna Embraces Microfinance Policy…
All Africa.com
The micro finance policy of the federal government is already bearing fruits in Kaduna State as the 18 community banks have already converted to Micro Finance banks and as at January this year, 23 of such banks have either been licensed or given Approval s-in-Principle by the Central Bank to operate.
This was disclosed by Alhaji Mohammed Ibrahim Gusau, the Kaduna Branch Controller of the Central Bank of Nigeria (CBN) on Saturday night, at the 2008 annual dinner of Bankers’ Clearing House Committee which was held at Hamdala Hotel Kaduna.
According to him, the state government has inaugurated the Kaduna state microfinance policy implementation since 2006, “primary to ensure the transformation of the then community banks to microfinance banks,” adding that since then, the terrain for micro financing in the state has changed for the better. The Branch controller of CBN however said that the spread of such microfinance banks is not enough to cover the entire state. He then called on wealthy individuals, community leaders, non governmental organisations and other interested parties to establish more microfinance banks in Kaduna state because the government has created the enabling environment for them to thrive. (more…)
The MiFi Report
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