Source: The Guardian.Original article available online.
LAGOS, September 17 – The Lagos chapter of the National Association of Microfinance Banks of Nigeria (NAMFBIN), has unfolded plans to mobilise funds to bail out its members in distress.
The Chairman of the chapter, Mr Olutayo Adenekan, told the News Agency of Nigeria yesterday in Lagos, that the aim was to bridge the crisis unleashed on microfinance banks by high rate of bad loan defaults.
Adenekan said that three commercial banks had been contacted to help in the management of the intervention funds.
He explained that the funds would ensure that microfinance banks were in a position to contribute to the future development of the Nigerian economy.
The chairman stressed that the move was also to ensure that loans were dispensed to the active poor because microfinance institutions must not afford to fail in their responsibility to the active poor.
On the issue of non-performing loans, Adenekan said that it was the responsibility of the institutions to ensure that due process was followed when giving out loans.
According to him, the association meets with the officials of the banks regularly on the way forward and one of such moves is the intervention fund.
“The association in order to guard against the challenges that may lead to crisis of any of our members has decided to embark on raising intervention funds.
“Such funds would be used to rescue our members who face challenges in the primary cause of discharging their duties as stipulated within the microfinance policy of 2005,” he said.
He, however, called for the co-operation of the stakeholders to build a viable microfinance industry in the country.
Adenekan said that Nigerians should remember that the future of the economy depended on the extent the micro institutions were able to empower small and medium scale traders.
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