The Lagos State Microfinance Institution (LASMI), an agency that was established by the government of the Nigerian state of Lagos to oversee its microfinance program, recently announced plans to partner with microfinance institutions (MFIs) that it deems financially viable in an effort to increase financial inclusion and the empowerment of poor people. The Lagos government has set aside an undisclosed amount of funds for on-lending to low-income borrowers that will be facilitated by the partner MFIs. Bashorun Alabi-Macfoy, Chairman of LASMI, reportedly said that the agency has been monitoring the activities of MFIs in the state as well as contacting customers in an attempt to identify potential MFI partners.
LASMI has indicated that priority will be given to MFIs that work in rural areas. Additionally LASMI will favor MFIs that offer group loans over those that offer individual loans and is encouraging MFIs to make thorough background checks of their customers prior to making loans in order to minimize occurrences of default.
By Julie Moksim, Research Associate
About Lagos State Microfnance Institutions (LASMI): Lagos State Microfinance Institution (LASMI) was established as an agency of the government of the Nigerian state of Lagos in 2008 with the primary objective of providing basic financial assistance to both rural and urban entrepreneurs. In order to carry out this objective, LASMI has entered into agreement with several microfinance institutions to provide a range of microfinance services. No financial information is available for LASMI.
Sources and Additional Resources:
Vanguard Online: “LASMI to Partner Financially Capable Microfinance Banks” by Amaka Abayomi, March 21, 2011, http://www.vanguardngr.com/2011/03/lasmi-to-partner-financially-capable-microfinance-banks/
MicroCapital.org Brief, February 14, 2011: Microborrowers Past Due on $6.5m in Repayments to Microfinance Institutions (MFIs) in Lago, Nigeria; National Association of Microfinance Banks Proposes Criminalization, https://www.microcapital.org/microcapital-brief-microborrowers-past-due-on-6-5m-in-repayments-to-microfinance-institutions-mfis-in-lagos-nigeria-national-association-of-microfinance-banks-proposes-criminalization/
MicroCapital.org Brief, February 14, 2011: Central Bank of Nigeria (CBN) Reviews Efforts to Encourage Microfinance, Discusses Challenges, https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-cbn-reviews-efforts-to-encourage-microfinance-discusses-challenges/
MicroCapital’s Microfinance Universe Profile: Lagos State Microfinance Institution (LASMI)
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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