The Nation Newspaper

Tag: micro-finance bank

  • LAPO targets N154billion for MSME in 2019

    The Managing Director, Life Above Poverty Organisation, LAPO, Micro Finance Bank, Godwin Ehigiamusoe has said that the bank hopes to give N154billion loans to support Micro, Small and Medium Enterprises before the year ends as against the N137 billion disbursed to them in 2018.

    He spoke during the company’s 8th Annual General Meeting held in Lagos last Thursday.

    “There is a huge gap between the demand for finance for credit by owners of Micro, Small and Medium Enterprises so as a microfinance bank, committed to supporting that end, our major operation is supporting credit. We prioritise giving loan to those businesses. This has been our commitment right from when we were a non-profit organisation,” he said.

    Speaking on the state of the business environment in Nigeria, he said the business environment has been quite challenging for all businesses not just LAPO but despite that, “we did our best to deliver our usual superior financial performance and it is for that reason that we were able to provide the announced dividend for investor but what is important is that the bigger chunk of our profit after tax has actually been put back into the business.”

  • Union to float micro finance bank

    The National Association of Scraps and Waste Dealers Employers of Nigeria is to establish a Micro Finance Bank (MFB) to promote the business activity of its members.

    Its National President, John Egaji Obeh, who made this known at  the second delegates conference of the association in Abuja, said plans for the establishment of the bank had reached advanced stage, pointing out that MFB is expected to assist members in boosting their businesses.

    He said the association also plans to present a bill to the National Assembly, but lamented that inadequate finances was hindering the smooth operation of the body.

    Obeh commended the former Minister of Labour, Chief Emeka Wogu for registering the association as a trade union, but accused some officials of the association of working to frustrate its activities.

    At the end of the delegates conference, Ogbeh was re-elected for a second term as President of the association with Dr. Mubarak Liman as his deputy.

    Others elected include Financial Secretary, Alhaji Hassan Yahaya, Treasurer, Uchenna Edimba, Agent Chairman, Olakunle Olalere, Vice President Northeast Alhaji Usman Shehu, Organising Secretary Omisakin Olufemi, National Auditor, Danladi Surajo and National TaskForce Chairman, Salami Kamoru Adisa.

  • Fake micro-finance bank operator on the run after fleecing depositors

    Fake micro-finance bank operator on the run after fleecing depositors

    An operator of a fake micro-finance bank in Egor local government area identified as Ojefe Augustine is currently on the run after allegedly fleecing depositors millions of naira.

    Ojefe was alleged to have collected huge sums of money from customers and ran away but his younger brother, Samson, who was one of his workers, was nabbed by operatives of the Nigeria Security and Civil Defence Corps (NSCDC).

    Samson told newsmen that his brother’s firm ran into trouble after one of the workers made away with N345, 000.

    He stated that efforts by his brother to locate the said staff was unsuccessful even as traders that borrowed money from the firm failed to return money.

    His words, “My brother was into thrift collector. I was one of his workers. As the company was coming up, one of the staff stole N345, 000.

    “My brother has not been able to track the staff. He gave loan to people and they refused to pay. He had to travel to look for money due to pressure from people that my brother should pay them.

    “My brother is looking for money to pay people and boost his business again. It was one of his clients that arrested me.”

    Reacting to the arrest, Edo State Commandant of the NSCDC, Makinde Iskil, described the incident as shocking.

    He said the suspects would be handed over to the police.

     

  • Council sets up micro-finance bank committee

    The Chairman, Abuja Municipal Area Council (AMAC), Abdullahi Candido has unveiled an 11-man committee on the establishment of a proposed AMAC Micro-Finance Bank, with seven terms of reference and a four weeks deadline to submit its report.

    Candido, while inaugurating the Committee under the chairmanship of Managing Director, AMAC Investment and Property Development Company (IPDC) ltd, Hon. Yakubu Adamu, listed its terms of reference to include looking at the viability or otherwise of the council establishing micro finance bank; and liaising with relevant regulatory body to ascertain the conditions to be met for its establishment.

    Others are: to identify a suitable site for the location of the proposed bank’s head office and other branches; ascertain the share capital of the council and that of the other shareholders/investors; and ascertain the initial capital to be injected in the short term and in the long run; as well as identify other investors that can partner with the council in the venture.

    He added that the committee is to prepare an Executive Bill, stating the entire modus operandi of the proposed bank for presentation to the Legislative Council for enactment in the Bye-Laws on the Establishment of AMAC Micro Finance bank.

    Responding on behalf of the committee, the AMAC-IPDC boss assured that the committee will vigorously follow the terms of reference given to it, and ensure that it churns out a comprehensive report within the time limit given to the committee, so as to enable the council establish and run micro finance bank.

    He said when the Micro-finance bank is established, the people and staff of the council as well as traders will feel the impact, as it will further open up access to soft loans needed to facilitate economic activities within the municipality and FCT at large.

  • Robbers raid Imo Airport, cart away cash

    Robbers raid Imo Airport, cart away cash

    Gunmen suspected to be armed robbers, Friday morning, raided a Micro Finance Bank located in the Sam Mbakwe Cargo Airport, as well as the offices of Arik and Air Peace Airlines, carting undisclosed sum money and other valuables.

    According to an eye witness account, the fully armed bandits who came in two unmarked vehicles, overpowered the few security men attached to the bank.

    The source who stated that the noise of snapping doors and windows, attracted some of the Airport staff, said that no one could get close to the scene of the crime for fear of being shot.

    A staff of Arik, who didn’t want to be named, said that the entire offices were broken into and company and personal valuables of the staff were stolen.

    In his words, “we are still in shock, how the robbers could have been able to operate freely without challenge with the number of security men at the Airport. It calls for serious concern because if the Airport cannot be safe, where else can be”.

    Meanwhile when contacted, the Imo State Police Public Relations Officer, Mr. Andrew Enwerem, who confirmed the incident, however said that it was a case of burglary.

    According to him, “we got the report that some hoodlums broke into a Micro Finance Bank at the airport but we did not get any report that they removed cash and no one was killed or wounded.

    “Already investigation is ongoing and the two security men attached to the bank are currently being interrogated”.

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  • NASSI mulls micro-finance bank

    NASSI mulls micro-finance bank

    Operators of small scale enterprises and industries in Nigeria, acting under the aegis of Nigerian Association of Small Scale Industrialists (NASSI), are considering setting up their own Micro-Finance Bank (MFB) to get round their challenge of lack of access to finance, The Nation has learnt.

    The Association’s National President, Chief Chuku Nwachuku, said in the next couple of weeks, NASSI would be asking for investors so that it can have its own micro-finance bank in every local government area of the country.

    He said the MFB would grant loans to NASSI members at a friendly interest rate instead of the prevailing rate of between 25 and 30 per cent interest rate. “How do you expect a deposit money bank with shareholders funds to give you interest of nine per cent, for instance, instead of their prevailing interest rate of 25 to 30 per cent?” he asked.

    While describing the N220 billion Micro, Small and Medium Enterprises (MSMEs) fund put in place by the Federal Government through the Central Bank of Nigeria (CBN’s) as a serious and commendable intervention, he expressed regrets that the problem with the fund, like similar funds in the past targeted at the sub-sector, is difficulty in accessing them.

    “That (N220b MSMEs fund) is a serious intervention. But the problem with funds like that, and over the years we have had so many funds like that in place, is that you cannot access them. So they remain a mirage. And this N220 billion has continued to be a mirage. That means you can’t touch it,” he said.

    He said a memo that came up at the first meeting of the National Council on Micro, Small and Medium Enterprises chaired by Vice President Namadi Sambo was access to finance, and that the Vice President realised there and then that a big chunk of the problem small scale industrialists are having is how to access finance.

    “The CBN guideline as published makes it impossible for anybody to access that fund. That is what happened to all kinds of funds that is domiciled with the CBN and other government agencies. Nobody can access them,” he lamented.

    Nwachuku, a  former Director-General of National Directorate of Employment (NDE) however, said the VP in his right thinking set up a sub-committee with NASSI as a member, and together with Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), CBN, Bank of Industry (BoI), and Bank of Agriculture (BoA), NASSI is trying to find a practical approach on how entrepreneurs can really access the fund.

    The NASSI boss however, argued that rather than put such intervention funds in the hands of government agencies, the best thing is to get the funds directly into the businesses to create employment.