Abeokuta-based microfinance bank (MFB) Classic Microfinance has been reportedly forced to sell off assets to pay debts it owes to its former depositors. The move is part of a broader effort in Nigeria to repay depositors of over 100 MFBs—including Classic Microfinance—whose licenses were permanently revoked in 2010 after being deemed “terminally distressed and technically insolvent.”
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MICROCAPITAL BRIEF: Eagle Flight Microfinance Bank Attempts to Reassure Clients After Mistakenly Being Included in List of Failed Nigerian Microfinance Banks (MFBs)
Eagle Flight Microfinance Bank, a financial institution licensed with Central Bank of Nigeria (CBN) and based in the city of Warri, reportedly was mistakenly included in a 2010 list of over 100 microfinance banks (MFBs) whose licenses were to be revoked by CBN. A week after the list of banks who could not repay debtors was released, CBN discovered that Eagle Flight Microfinance Bank was included in the list in error. In an effort to restore confidence in the bank, Eagle Flight hosted a party celebrating its fifth anniversary during which it gave away various gifts to clients including vehicles, plasma televisions, dining sets, electric generators and refrigerators.
MICROCAPITAL BRIEF: Royal Exchange Microfinance Bank of Nigeria Partners with Fidelity Bank to Offer Customers Access to More Bank Branches, Automated Teller Machines (ATMs)
Royal Exchange Microfinance Bank of Nigeria, the microfinance subsidiary of Nigerian financial services company Royal Exchange Public Limited Company, recently partnered with Fidelity Bank Public Limited Company, a Nigerian commercial bank, enabling its customers to access financial services through Fidelity’s service delivery network.
MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Meets with Directors of Liquidated Microfinance Institutions (MFIs) to Discuss Customer Payouts
The Nigeria Deposit Insurance Corporation (NDIC), an agency of the federal government of Nigeria that protects depositors by guaranteeing the settlement of insured deposits, recently met with the directors of nineteen liquidated microfinance institutions (MFIs) to discuss how to repay customers’ deposits.
MICROCAPITAL BRIEF: Nigeria’s Niger Delta Ministry Announces Microfinance Scheme for Youth
Hon. Samuel Odewho, the minister responsible for youth empowerment within the Nigerian government’s Niger Delta Ministry, recently announced the launch of a microfinance scheme that will provide soft loans to individuals, cooperatives and youth in the Niger Delta region who have completed the ministry’s skills training program. Hon. Samuel Odewho stated that the skills training provided by the ministry will enable the youth to set up sustainable businesses as well as enhance their employability [1].
MICROCAPITAL BRIEF: Microborrowers Past Due on $64m in Repayments to Microfinance Institutions (MFIs) in Lagos, Nigeria; National Association of Microfinance Banks Proposes Criminalization
Mr Olufemi Babajide, Chairman of the Lagos chapter of the National Association of Microfinance Banks (NAMB), a group of Nigerian microfinance institutions (MFIs), recently revealed that past due loans outstanding to MFIs in Lagos total NGN 10 billion (USD 64 million).
MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Begins to Repay Customers of Failed Microfinance Banks
In 2010, the Central Bank of Nigeria (CBN) revoked the operating licenses of 224 microfinance banks (MFBs) in the country that were “terminally distressed and technically insolvent.” After receiving fresh tranches of capital, new operating licenses were given to 121 of those outfits, but the remaining 103 institutions are being liquidated by the Nigeria Deposit Insurance Corporation (NDIC) and their depositors are now being repaid in stages.
MICROCAPITAL BRIEF: Government of Nigerian State of Ondo and Bank of Industry (BOI) Disburse $13m to Microfinance Scheme
The government of the Nigerian state of Ondo disbursed NGN 2 billion (approximately USD 13 million) to create the Micro, Small and Medium Enterprises Development Fund, which will provide wholesale funding and refinancing liquidity for microfinance institutions (MFIs).
MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) to Prosecute Managing Directors of Failed Microfinance Banks
The Nigeria Deposit Insurance Corporation (NDIC), an independent agency of the Federal Government of Nigeria which guarantees deposits to financial institutions, has reportedly begun compiling a list of some of the managers of the failed microfinance banks – whose licenses were recently withdrawn by the Central Bank of Nigeria (CBN) – with the aim of prosecuting them.
MICROCAPITAL BRIEF: Microfinance Investment Manager BlueOrchard Invests $5.5m in Fondo de Desarrollo Local (FDL) of Nicaragua, First Allied Savings and Loans Limited (FASL) of Ghana and AB Microfinance Bank of Nigeria
BlueOrchard Finance SA, a subsidiary of Switzerland-based commercial microfinance intermediary BlueOrchard, reported to MicroCapital the details of three debt investments made to microfinance institution (MFI) Nitlapan’s Credit Program Fondo de Desarrollo Local (FDL) of Nicaragua (MFI), First Allied Savings and Loans Limited (FASL), an MFI in Ghana, and the commercial AB Microfinance Bank of Nigeria.
MICROCAPITAL BRIEF: Anglican Diocese of Enugu, Nigeria, to Launch Microfinance Bank
Emmanuel Chukwuma, the Anglican bishop of the diocese in Enugu, Nigeria, announced that the diocese will establish a microfinance bank that will employ 80 people and assist community residents who are already engaged in microenterprises.
MICROCAPITAL BRIEF: “This Day” Online Editorial Laments Closure of 224 Insolvent Nigerian Microfinance Institutions (MFIs)
The editors of This Day Online lament the revocation of 224 Nigerian microfinance institutions’ (MFIs’) operating licenses in a recent posting.
MICROCAPITAL BRIEF: Nigerian Microfinance Bank (MFB) Stakeholders Urge Staff Training to Combat High Delinquency Rates, Borrowers Reportedly “Fleeing” Town When Unable to Repay
Microfinance banks (MFBs) in Nigeria are reporting that borrowers are building up such high levels of debt that they are fleeing their homes and, having given false guarantor names, are essentially untraceable.
MICROCAPITAL BRIEF: Nigerian Tech Firms Systemspecs and Maxim-Pro to Begin Training Microfinance Institution (MFI) Staff on Integration of E-Payment Service, Remita
A release from the online edition of Nigeria’s Champion Newspaper reports that Systemspecs Nigeria Limited, a software development firm headquartered in Lagos, and Maxim-Pro, a Nigerian technology provider to financial firms, finalized arrangements to begin training for the staff of approximately 125 Nigerian microfinance banks that have recently begun offering Remita, an electronic payment (e-payment) service.
MICROCAPITAL BRIEF: Africa Capital and Business Support Invests $39m in Integrated Microfinance Bank Limited From $400m Mainsail Trading Limited Facility
In connection with a USD 400 million debt facility received from Mainsail Trading Limited, an investment company based in Dubai, and guaranteed by Suisse Bank Plc, a British private bank, Africa Capital and Business Support Limited (ACBS), a Nigerian financial intermediary, announced the signing of a memorandum of understanding with Integrated Microfinance Bank Limited (IMFB) for an injection of NGN 6 billion (USD 39 million).
MICROCAPITAL BRIEF: ACCION Microfinance Bank of Nigeria Posts $500,000 Profit
ACCION Microfinance Bank Limited of Nigeria has reported an after-tax profit of NGN 75.92 million or the equivalent of USD 500,000 for the period ended December 31, 2009, compared to a reported loss of NGN 67.47 million or the equivalent of USD 400,000 for the year ended December 31, 2008.
MICROCAPITAL BRIEF: Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Signs “Memorandum of Understanding” with Six Microfinance Banks
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has signed a “memorandum of understanding” with six microfinance banks in order to facilitate the provision of microcredit for small and medium-sized enterprises across the country. The six microfinance banks that will receive grant money from SMEDAN are Misau Microfinance Bank in Bauchi, Kada Microfinance Bank in Kaduna, Safeline Microfinance in Abuja, KRGY Microfinance Bank in Jigawa, Atlas Microfinance Bank in Abuja, and Fahimata Microfinance Bank in Kaduna.
MICROCAPITAL BRIEF: Lagos State Microfinance Institution (LASMI) in Nigeria Claims Its Loans Have Created Over 200,000 Jobs
According to Mr Bashorun Alabi-Macfoy, the chairman of Lagos State Microfinance Institution (LASMI), the microfinance agency of the Lagos State government in Nigeria, his institution has generated over 200,000 jobs as of May through its support of borrowers via microfinance institutions (MFIs) across the state.