Dr Ike Abugu, President of the Nigerian Association of Small and Medium Enterprises (NASME), has called the lack of skilled workers employed in microfinance as the reason why he feels microfinance has been unable to impact the economy and fulfill its promise. Dr Abugu commented, “The kind of people that went into microfinance was spillover from the commercial banks so they still had this banking mentality. They did not have the skills, knowledge and expertise to run microfinance banks.”
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MICROCAPITAL BRIEF: Nigerian National Association of Microfinance Banks (NAMB) Announces 10-Point Plan to Revitalize Microfinance Banks
Mathias Omeh, National President of the Nigerian National Association of Microfinance Banks (NAMB), announced the release of a ten-point plan to revitalize his country’s microfinance sector [1]. Omeh was elected to the position less than a month ago on promises of increased scrutiny and public microfinance education [2].
MICROCAPITAL BRIEF: The National Association of Microfinance Banks (NAMB) to Partner with Universities to Facilitate Capacity Building in Nigerian Microfinance Sector
Chief Jethro Akun, the Vice President of the National Association of Microfinance Banks (NAMB) in Nigeria, has announced plans to partner with the National University Commission (NUC), a parastatal under the Federal Ministry of Education established in 1962, to facilitate the offering of courses in microfinance banking at the university level. According to Mr. Akun, the partnership is necessary as the microfinance sector needs more “manpower” to achieve growth in the sector. He also believes that courses in microfinance banking will help to allay many of the fears of the general public over the viability of microfinance banks [1].
MICROCAPITAL BRIEF: ACCION International and Ecobank Partner to Form EB-ACCION Microfinance in Cameroon
EB-ACCION Microfinance, a microfinance institution (MFI) formed by ACCION International, a nonprofit organization with partner MFIs in over 20 countries, and Ecobank, a pan-African bank with a network of over 500 branches in 27 countries, recently launched its first two branches in Cameroon.
MICROCAPITAL BRIEF: Microlenders in Nigeria Unite Under the Association for the Survival/Sustenance of Microfinance Institutions (MFIs)
A group of microfinance institutions (MFIs) across Nigeria, including microfinance banks, co-operative societies and NGOs, has joined together to form the Association for the Survival/Sustenance of Microfinance Institutions. The primary goal of the association is to facilitate funding from international financial institutions such as the International Monetary Fund (IMF) and the International Finance Corporation (IFC).
MICROCAPITAL BRIEF: Five Employees Defraud Nigerian Christ Embassy Microfinance Bank of $400k
The Nigerian Special Fraud Unit of the Nigerian Police Force recently detained five employees of the Christ Embassy microfinance bank for defrauding the organization of NGN 60 million (USD 400,000) [1]. The five employees funneled the money into two false accounts beginning some time in 2008 and ending in February 2009 when an independent auditor noted that the funds were missing [2]. At the time, the organization’s microfinance operations had not been licensed by the Central Bank of Nigeria (CBN).
MICROCAPITAL BRIEF: Nigerian National Association of Microfinance Banks (NAMB) Elects New Leaders
Mathias Omeh, chairman of Nsukka Microfinance Bank, beat out Olutayo Adenekan, chairman of All Stars Microfinance Microfinance Bank, to become the National President of the Nigerian National Association of Microfinance Banks (NAMB) by a vote of 288 to 202 [1]. Upon election, Mr Omeh directly addressed waning public trust in microfinance banks.
MICROCAPITAL BRIEF: The Promise of Microinsurance in Nigeria
In a recent article, Akin Ogunbiyi, the managing director of an insurance provider in Nigeria, Mutual Benefits Assurance Plc, spoke about the future for microinsurance in Nigeria.
MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Commences Nationwide Investigation of Microfinance Institutions (MFIs)
After a joint examination exercise with the Central Bank of Nigeria (CBN) and a slew of complaints from depositors of microfinance institutions (MFIs) that have shut down, the Nigeria Deposit Insurance Corporation (NDIC), the country’s financial industry regulator, recently began a nationwide investigation of MFIs.
MICROCAPITAL BRIEF: Nigerian Satelite Microfinance Bank Deploys Clickatell SMS Alert System to Limit Fraud
In an effort to prevent fraud and keep customers informed, Satelite Microfinance Bank, a microfinance institution in Nigeria, has recently started using the Clickatell text-message alert system to notify customers when debit or credit activity is occurring on their accounts.
MICROCAPITAL BRIEF: National Association of Microfinance Banks (NAMB) to Embark on “Enlightenment Campaign” to Increase Knowledge of Microfinance in Nigeria
The National Association of Microfinance Banks (NAMB), an association of microfinance institutions (MFIs) in Nigeria, recently announced in Lagos, Nigeria, that it intends to embark on a campaign to increase knowledge of microfinance among potential clients in Nigeria.
MICROCAPITAL BRIEF: Chief Olutayo Adenekan, the Lagos State Chairman of the National Association of Microfinance Banks (NAMB), Still Working to Implement Intervention Fund to Provide Short-Term Financial Support to Microfinance Banks
Chief Olutayo Adenekan, the Lagos State chairman of the National Association of Microfinance Banks (NAMB), is reportedly still working to implement an intervention fund to provide short-term financial support to microfinance banks [1,2,3].
MICROCAPITAL BRIEF: National Association of Microfinance Banks of Nigeria (NAMB) Seeks Farmers’ “Cooperation” in Microfinance After Interest Rate Complaints
Jude Mathias, the President of the caretaker committee for microfinance institutions (MFIs) for the National Association of Microfinance Banks of Nigeria (NAMB), recently made a request for Nigerian farmers to “cooperate” with the sector’s current standards and regulations.
MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Blames Microfinance Institutions (MFIs) for Lending Failures, MFIs Fault “Bad” Nigerian Borrowers
Amidst the turmoil in Nigeria’s microfinance sector, industry players seem to be holding each other responsible for the industry’s failures.
MICROCAPITAL BRIEF: Christmas Withdrawals May Further Stress Nigerian Microfinance Institutions
According to a recent article in Nigeria’s Business Day newspaper, some microfinance institutions (MFIs) are experiencing liquidity squeezes as their customers withdraw cash for the Christmas holiday.
MICROCAPITAL BRIEF: The International Finance Corporation (IFC) to Provide $3m to AB Microfinance Bank Nigeria Limited
The International Finance Corporation (IFC), the investment arm of the World Bank, has announced that it will provide a loan worth NGN 450 million, the equivalent of over USD 3 million, to AB Microfinance Bank Nigeria Limited, a Nigerian microfinance institution (MFI) [1,2,3]. In turn, AB Microfinance Bank will provide loans to “microenterprises and low-income entrepreneurs in Nigeria” [1]. The tenor of the loan is five years, and is denominated in Nigerian Naira [1]. This will eliminate foreign exchange risk for AB Microfinance Bank, thus allowing the MFI “to offer long term Naira products to its customers” [1]. In October of 2008, the IFC provided AB Microfinance Bank with a NGN 150 million loan, the equivalent of over USD 998,000, which was used to help the MFI begin operations [1]. AB Microfinance Bank Nigeria Limited was created in 2008 by Access Microfinance Holding AG, an investor in MFIs, and Impulse Microfinance Investment Fund, a fund managed by Incofin Invesment Management [3,4,5].
MICROCAPITAL BRIEF: Expert Points to Need for Microinsurance in Nigeria as Insurance Penetration Rate Worsens
According to the Managing Director of Insurance Brokers of Nigeria, Mr Prosper Okpue, the insurance penetration rate of Nigeria continues to worsen. His statement comes over a year after the World Bank issued a report citing that the Nigerian insurance industry had remained stagnant for 35 years and its world market share stood at a mere 0.01 percent (compared with South Africa’s 0.83%). The former president of the Nigerian Council of Registered Insurance Brokers attributed this to the fact that, “Only companies or government ministries will pay premium for their group life insurance. What happens to the informal sector where the bulk of the population can be found carrying out legitimate economic activities?” In response to the issue, Mr Okpue proposed a microinsurance scheme that would “help the people integrate insurance into their lives.” Further details have not been released.
MICROCAPITAL.ORG BRIEF: Lagos State Government in Nigeria Provides $2.3m to Lagos State Microfinance Institution (LASMI)
The state government of Lagos, Nigeria, has extended an equivalent of USD 2.3 million to the Lagos State Microfinance Institution (LASMI), in order to enable more low-income borrowers to obtain loans, according to Lagos State Governor Babatunde Fashola. These funds are to be disbursed by eight microfinance institutions that are registered under LASMI. Fashola stated that the Lagos state government contributed about USD 1.2 million, while the partnering MFIs under LASMI matched that amount by also providing a sum of about USD 1.2 million.