NEWS WIRE: Nigeria: Crown Eagle MFI CEO Calls on Central Bank to Bar Universal Banks From Microfinance

Original article available here.

LAGOS, NIGERIA, June 12 – President/Chief Executive, Crown Eagle Microfinance Bank, Mr. Ben Taiwo Ojomo has called on the Central Bank of Nigeria (CBN) to bar universal banks from microfinance banking sector.

Speaking in an interview with Vanguard at a pre launching of the bank, Ojomo averred that it is misplaced priorities for universal banks to establish microfinance banks as they are supposed to focus on competing globally with other banks. Speaking on the challenges confronting the microfinance banking sector, he stated, “And also we have loads of people now springing up even the big banks, the high street banks; they want to come back into microfinance. To me I don’t think it is right. It is misplaced priority.

The big banks should aspire to compete with the big banks globally like the Beckley Bank, Natwest Bank, or the Chase Manhattan Bank. But if they are dropping down to microfinance level it is misplaced priority. Because they should be loaning us money, they should be moving into the capital market doing something bigger. Now that we have this credit crunch in America, in Europe, they should go there and take possession of these banks; they have this money locked up in their vault. They should use the money to buy these distressed banks in U.S. also in London and also in Europe. Our banks should be there participating, using their impact, the money they’ve got and not to drop down to our level, to start picking up crumbs with microfinance banks.”

“The CBN should assist microfinance bank to get finance, capital because we need to disburse money to poor people. We don’t get that assistance from them. And they need to have stringent controls, because the general concern, the banks in the past they just fell apart, there has to be this control mechanism to ensure that the banks are following the true part laid down by the CBN. But as far as microfinance bank is concerned they should allow as many people as possible but the commercial banks should be limited from dabbling into microfinance. They should be doing something on a higher level and also loan money to microfinance banks.”

Speaking about the bank, he stated, “Crowned Eagle MF Bank was licensed by the Central Bank of Nigeria in December 2007. It is established with a vision to seek for the prosperity of the various communities and customers. The Bank will provide diversified affordable, dependable and modern financial services to ordinary people in a competitive manner, which would enable development of long-term sustainable entrepreneurial activities.”

“We would position our self as a bank for small and medium size businesses and help ordinary people improve their lives and move out of poverty by making credit available. SMEs: We are inspiring SMEs to turn their finances around and we are giving them all the information and tools they require to get their businesses going – with fresh thinking idea. We are here to help with easy and innovative ways to fulfil their good intentions.

Our commitment to Small and Medium Enterprises (SME) is to add value to their business with enhanced credit facilities. Also we have introduced innovative technology and dynamism into micro finance banking by using partnering concept with our customers and connecting with their needs through excellent services to our customers.” “As part of our commitment, we have developed and produced “Small Business Guide”.

An information pack for any one starting business or existing informal business wanting to solidify their businesses. It provides useful tips, from preparation of business plan to raising capital to financing the business. Additionally, we provide free legal business advice to all our SME customers. We help our customers dream the seemingly impossible by challenging the culture of poverty. We do this by encouraging our customers to re-focus their priorities and values.

We play our part in tackling social exclusion, enabling community empowerment, helping the poor to create an integrated and sustainable approach to eradicating poverty. It is a fact that, seven out of ten people living in extreme poverty today are women. Women don’t have many options available to them to help earn income to support their families. Crowned Eagle helps to provide loans and skills to get women started in their own businesses. We build women’s confidence and create income to help them look after their children.

We make small loans available for them to buy raw materials and market their wares in order to expand their businesses. We encourage them to form co-operatives thereby offering each other support and as they repay their loans, other women also benefit from their initiatives.

This is not limited to women. We have also encouraged men to develop their businesses – “the Okada”, butchers, mechanics and others. We are also offering support to various associations to generate business development.”

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