Unity Bank Plc., a commercial financial institution with 215 branches in Nigeria, has finalized arrangements to establish seven microfinance institutions (MFIs) in Kano and Jigawa, two states in the North West geopolitical zone of the country. The bank also plans to establish two MFIs each in the North East, North Central and South South zones of the country. These regions represent 19 of the 36 states which comprise Nigeria. The bank will use its subsidiaries BON Trustees Ltd. and First Venture Ltd. to launch the proposed MFIs.
Search Results for: central bank of nigeria
WHO’S WHO IN MICROFINANCE: Ecobank
Ecobank is an independent regional banking Group in West and Central Africa serving wholesale and retail customers. It has a network covering 18 countries namely: Benin, Burkina Faso, Cameroon, Cape Verde, Central Africa, Côte d’Ivoire, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Sao Tome, Senegal, Sierra Leone, Tchad and Togo, with plans to establish presence in East and Southern Africa. The Group has a network of over 320 branches and offices established in the last nineteen years. Ecobank Transnational Incorporated (ETI) the parent company of the Ecobank Group plays a central role in the definition and implementation of common policies and standards on the basis of a “one bank” concept across the group’s network.
NEWS WIRE: Seedvest Microfinance Bank Comes on Board
Source: BusinessDay Online, Oluyinka Alawode
Article available here.
Another microfinance bank with the passion to boost the economic emancipation of the nation especially at the grassroots level has come on board. Seedvest Microfinance Bank Limited commissioned weekend in Ibadan, Oyo State had in attendance representatives of the deputy governor, financial sector surveillance of the Central Bank of Nigeria (CBN), Tunde Lemo and other financial institutions department, trade unions and associations.
MICROCAPITAL STORY: Five Nigerian Microfinance Banks Opt to Use Neptune’s Orbit Banking System
Five financial institutions in
Continue reading “MICROCAPITAL STORY: Five Nigerian Microfinance Banks Opt to Use Neptune’s Orbit Banking System”
MICROCAPITAL STORY: Treasure Microfinance Bank to Begin Operations in Nigeria
The Central Bank of Nigeria (CBN) has given provisional approval for newly established Treasure Microfinance Bank to begin operations. This is ahead of the December 2007 deadline set for all Community Banks in the country to convert to Microfinane Banks.
The targets of Nigeria’s microfinance policy, according to the CBN are to ensure that the majority of the poor but economically active population is covered by 2020, and to increase the share of micro credit as percentage of total credit to the economy from 0.9 percent in 2005 to at least 20 percent in 2020. (For further information on Nigeria’s policies on microfinance, refer to a previous MicroCapital article.)
Continue reading “MICROCAPITAL STORY: Treasure Microfinance Bank to Begin Operations in Nigeria”
Grameen Foundation Supports Citibank’s USD 1mm Financing of Nigerian Microfinance Institution LAPO
Citibank, part of the Citigroup global financial services company, will provide a USD 1mm Nigerian naira equivalent structured loan through it’s subsidiary, the Nigerian International Bank (NIB), to Lift Above Poverty Organisation (LAPO), a Nigerian microfinance institution (MFI). The loan is supported by a USD 500,000 guarantee from the Grameen Foundation. The deal is LAPO’s first commercial transaction with a bank, and the first transaction between Citibank and a Nigerian MFI. The investment comes at a time when many Nigerian MFI’s are struggling to meet minimum capital requirements (see previous article on microcapital.org) among other standards to be introduced in forthcoming regulation of the industry, due to be enforced by the Central Bank Nigeria (CBN) in December 2007 (see previous article on microcapital.org).
Mergers and Acquisitions in Nigerian Microfinance to Ease Compliance with Forthcoming Regulation
Central Bank Nigeria (CBN) has endorsed a broadening of mergers and acquisitions among existing microfinance institutions (MFI’s) or ‘community banks’ so that they can comply with minimum capital requirements which are part of forthcoming regulation. The regulation, which requires all such organisations to register as microfinance banks by December 2007 (see previous article on microcapital.org), requires a minimum capital base of 20mm Nigerian naira (USD 156,500) for ‘state community banks’ and NGN 1bn (USD 7,824,000) for ‘federal community banks.’ After a meeting between CBN and the National Association of Community Banks of Nigeria (NACOB) Abdulgadir Bauchi, president of NACOB, said “community banks can now go into mergers and acquisitions so as to meet the deadline given by the apex bank to transform to microfinance bank[s].”
Nigeria Strengthens Microfinance Sector with New Regulations for Community Banks
Under Nigeria’s new national microfinance framework, all community banks must convert to microfinance banks and comply with the new regulations by the end of 2007, 24 months from the approval date of the policy. Community banks which fail to increase their capital from the prior requirement of 5 million naira (USD $40,000) to 20 million naira ($161,000) will cease operations. The Central Bank of Nigeria’s (CBN) survey shows that a minimum of 50 million naira ($400,000) is needed to provide effective banking services. Since community banks based in rural areas may be unable to raise that much in shareholder’s funds, a lower requirement was set.
A Nigerian community bank is a “self-sustaining financial institution owned and managed” by the community which it serves. (p.26) The National Board for Community Banks issued provisional licenses to 1,366 community banks from 1990 to 1997; the CBN was responsible for issuing the final licenses after two years of operation.
Continue reading “Nigeria Strengthens Microfinance Sector with New Regulations for Community Banks”
SPECIAL REPORT: Registering Property, Charging Up to 3% Monthly Interest, Promoting Local Currency for Housing Loans at European Microfinance Week
At 
the session titled “Building an Enabling Environment for Low-Income Housing Finance,” R V Verma, former Chairman of the National Housing Bank (NHB) (India) and consultant to the World Bank Group, said that “pushing the formal financial system to reach out to the informal sector [presents] a lot of challenges, but also huge opportunities. As part of financial inclusion, housing microfinance has a very important role.” Mr Verma went on to describe the market in India, which has an outstanding mortgage balance of INR 13 trillion (USD 200 billion) but a shortage of 24 million housing units. He also explained efforts to mitigate risk for housing lenders – both credit risk and issues with land title. Among the tools in use is a central registry of outstanding property loans. Mortgage insurance is also available even to informal workers – when lenders are willing to issue them loans.
Adedeji Adesemoye of the Central Bank of Nigeria described his institution’s efforts to address Nigeria’s shortage of 17 million housing units via resources including a loan package of USD 300 million awarded by the World Bank’s International Development Association (IDA) in 2012. While much of this package was for refinancing mortgages, USD 15 million of it was earmarked for housing microfinance. That portion was disbursed to nine microfinance institutions to test lending to existing (non-housing) clients for land acquisition, incremental construction and
SPECIAL REPORT: Public Solutions at SAM: Collateral Registries, Business Training, Higher Microinsurance Uptake Can Promote Entrepreneurship in Africa
At 
the SAM (Semaine Africaine de la Microfinance) plenary on “Public Solutions to Promote Entrepreneurship in Africa,” Kennedy Komba of the Alliance for Financial Inclusion (AFI) explained that his institution’s SME (Small and Medium-sized Enterprise) Working Group comprises 53 regulatory and policy-making bodies. To facilitate the growth of entrepreneurship, these agencies have created collateral registries, adjusted lender liquidity ratios, updated know-your-customer frameworks and established rules for digital financial services. Trainers in Zambia used a financial education game to reach 5,000 people, of whom 80 percent were able to improve their businesses as a result. In Ghana, the Ministry of Agriculture and the Bank of Ghana collaborated to boost local value chains in an effort to reduce costly
SPECIAL REPORT: Reinventing Microfinance Institutions (MFIs) to Meet the Needs of SMEs at SAM: Building Staff Capacity, Sharing Default Risk with Investors, Helping Entrepreneurs Think Big
On the second day of the SAM (Semaine Africaine de la Microfinance) conference, Godwin Ehigiamusoe of Nigeria’s LAPO discussed the needs and expectations of small and medium-sized enterprises (SMEs). He explained that they generally are sensitive to price and prefer not to post collateral. Loan sizing and duration are key. From a lender’s perspective, SMEs need to get their records out of their heads and onto paper (if not into digital form). The Central Bank of Nigeria has six Entrepreneurship Development Centers at which business owners can get assistance with business plans and other support.
Mr Ehigiamusoe added that LAPO became involved with SME lending as its microenterprise clients grew. Likewise the staff of LAPO was in need of capacity development to serve their clients’ evolving needs. LAPO’s Sufen loan program is designed to identify female entrepreneurs with high growth potential and
MICROCAPITAL BRIEF: MoneyGram, Vodafone Partner to Enable Global Mobile Money Transfers Via M-Pesa
Vodafone Group, a British multinational telecommunications company, has partnered with MoneyGram, a US-based money transfer company with outlets in 200 countries, to allow MoneyGram’s customers to transfer funds to account holders of M-Pesa, a mobile money service developed by Vodafone that operates in six countries in Asia and Africa.
MICROFINANCE EVENT: Center for Financial Inclusion to Host Financial Inclusion 2020 Global Forum, October 28-30, London
Event Name: Financial Inclusion 2020 Global Forum
Event Date: October 28-30, 2013
Event Location: Lancaster London Hotel, London, UK
MICROFINANCE PUBLICATION ROUND-UP: Alleviating Poverty via Mobile Communications; Integrating Microfinance, Health Services in the Andes; Mobile Phone Technology for Women in Afghanistan
“Alleviating Poverty: Mobile Communications, Microfinance and Small Business Development Around the World;” by Darrell M. West; published by The Brookings Institution; May 2013; 12 pages; available at: http://www.brookings.edu/~/media/research/files/papers/2013/05/16%20poverty%20mobile%20microfinance%20business%20west/westalleviating%20povertymobile%20comms%20microfinance%20small%20business51613v12.pdf
MICROCAPITAL BRIEF: Vodacom Mozambique Launches M-Pesa Mobile Money Service
Vodacom, a South Africa-based mobile communications company owned by UK-based Vodafone, reportedly has announced the expansion its mobile pesa (M-Pesa) cash transfer service to Mozambique.
MICROCAPITAL BRIEF: Number of Mobile Money Subscribers in Kenya Down 1%, Total Transaction Value Up 7% During Quarter Ending September 2012
The Communications Commission of Kenya (CCK), a state-owned regulatory authority for the communications industry in the country, has released a report showing that the number of mobile money service subscribers dropped by 200,000 to 19.3 million between July and September 2012.
MICROFINANCE EVENT: Mobile Money Connected Africa Forum Conference & Expo, May 14-17, 2012, South Africa
Event Name: “Mobile Money Connected Africa Forum Conference & Expo”
Event Date: May 14 – 17, 2012
Event Location: Johannesburg, South Africa
MICROCAPITAL BRIEF: Economist Angela Luci Argues Microfinance can Empower Women in Non-Financial Arenas, Fight Discrimination
A recent entry on the Gender Debate blog cites the report “Microfinance: Champion in Poverty Alleviation and Failure in Female Empowerment” by Alexandra Dobra to argue that most microfinance services only focus on the financial empowerment of women, wasting their potential to promote the “full and equal participation of women in all spheres of society including decision-making and access to power” [1].