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.
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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: Nigerian Government and International Fund for Agricultural Development (IFAD) Address Lack of Access to Microfinance in Nigeria with $40m Fund for Rural Farmers
The International Fund for Agricultural Development (IFAD), an agency of the United Nations established to eradicate rural poverty in developing countries, and the Nigerian Federal Government have created a microfinance fund worth NGN 6.1 billion (the equivalent of USD 40 million). The funds will be distributed to rural farmers in 12 Nigerian states by microfinance institutions (MFIs) in the form of microloans.
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) to Handover Debtors of Distressed Microfinance Banks to Economic and Financial Crimes Commission (EFCC) and Revoke Operating Licenses of Microfinance Banks That Have Closed Operations for More Than Six Months
An investigation by Vanguard, a newspaper in Nigeria, indicates that the Central Bank of Nigeria (CBN) is currently compiling names of individuals who have received loans from microfinance banks and have failed to repay those funds.
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Creates Mandatory Exam for Microfinance Bank Managers
MICROCAPITAL BRIEF: Governor Uduaghan of Delta State Receives Central Bank of Nigeria’s Microfinance Award
The Central Bank of Nigeria (CBN) has given Governor Emmanuel Uduaghan of Delta State the country’s microfinance award. Governor Uduaghan received the award because his state’s microfinance initiative has seen the most promising results.
MICROCAPITAL BRIEF: Nigeria’s Microfinance Interbank Money Market Fails
Nigeria’s Vanguard newspaper reports that the local microfinance interbank money market has collapsed due to the very liquidity problems it was intended to address.
MICROCAPITAL BRIEF: The Central Bank of Nigeria (CBN) Investigates “Fraudulent Practices” at Five Recently Failed Nigerian Microfinance Banks
Mr. Olufemi Fabanwo, Nigeria’s (CBN) Director of the Other Financial Institutions Department, told news agencies that the central bank will investigate five recently failed microfinance banks and, if any operators are found to be fraudulent, he or she will be handed over to the EFCC, the country’s law enforcement agency. Operators are considered fraudulent if they have no state license to engage in banking activities. The five banks are: Integrated Microfinance Bank, KFC Microfinance Bank, Bristol Microfinance Bank, Unique Microfinance Bank, and Milestone Microfinance Bank, all based in Lagos.
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: Vanguard News Claims Central Bank of Nigeria (CBN) Will Revoke Operating Licenses of Several Microfinance Banks
According to a Vanguard News Online article, the Central Bank of Nigeria (CBN) has decided to revoke the operating licenses of a number of illiquid microfinance banks [1,2].
MICROFINANCE EVENT: Africa Information and Communications Technology Exhibition & Conference (AITEC) Banking & Mobile Money – West Africa, Lagos, Nigeria; May 11 – May 12, 2010
Event Name: AITEC Banking & Mobile Money West Africa, 2010
Event Description: The theme of this two-day conference is “Innovating to Survive and Thrive in Hard Times.” It will focus on improving upon practices of technological service provision by suppliers and bankers to better reflect customer preferences. The conference invites bank customers to try out new technologies in an exhibition. In discussion panels, microfinance banks will share their experiences in mobile banking, and regulators, bankers and mobile operators will share their experiences in mobile banking regulation strategies.
MICROCAPITAL BRIEF: AB Microfinance Bank, a Microfinance Institution (MFI) in Nigeria, Disburses 3,000 Loans in First Year of Operation
AB Microfinance Bank, a microfinance institution (MFI) based in Nigeria, has, in its first year of operation, disbursed a total of 3,000 loans, according to Corinna Heuer, Head of Banking Services for AB Microfinance Bank [1,2].
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: UnityKapital Assurance Plc of Nigeria Announces Information Technology Development, Expansion into Microinsurance
UnityKapital Assurance Plc, a Nigerian insurance company with a recorded NGN 518 million (USD 3.47 million) profit after tax in 2008, has announced the deployment of a comprehensive information technology (IT) system and an expansion into newer areas of insurance, including Islamic insurance and microinsurance.
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Encourages Microfinance Banks (MFBs) To Cut Costs
At a meeting between microfinance banks (MFBs) and the Central Bank of Nigeria (CBN) in Lagos recently, CBN Governor Lamido Sanusi urged MFBs to adopt cost cutting measures, including the reduction of staff. Also, Govenor Sanusi stated that “MFBs should not mismatch assets and liabilities. Typically, MFBs get deposits of 30 days, however, they end up using [the 30 day deposit] to create loans of six months to one year.” These suggestions are in response to the recent liquidity problem among the 1,000 MFBs in Nigeria. In support of these measures, Director Femi Fabamwo of Other Financial Institutions Department (OFID), which is a division of CBN, stated, “The aim is to reduce the rate at which some of these banks fold up because it seems like most of them are competing with commercial banks… If [MFBs] can maintain low cost [structures], they [will] be able to improve their operations.”
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: First Bank Nigeria (FBN) Microfinance Limited Reaches $2.1 Million in Disbursed Loans Since Start of Operations in January 2009
First Bank Nigeria (FBN) Microfinance Limited, the microfinance arm of financial services provider, First Bank Nigeria, has loaned NGN 326 million, the equivalent of over USD 2.1 million, to 1,252 customers since it began operating in January of 2009, according to the microfinance institution’s (MFI’s) Chairman, Ola Oyeola [1,2,3]. Mr. Oyeola’s comments were reported in an online article in the “Daily Triumph” of Nigeria, and were made at the MFI’s “official launch” on December 14, 2009 [1]. The MFI currently operates in 11 locations in the Lagos State of Nigeria, and intends to open four new branches in the first quarter of 2010 [1].
MICROCAPITAL BRIEF: Alitheia Capital, Goodwell Investments BV and JCS Investments Announce First Close of $60m Equity Fund for Microfinance in Nigeria and Ghana
Alitheia Capital, Goodwell Investments BV and JCS Investments have announced the first close of a USD 60 million equity fund focused on microfinance in Nigeria and Ghana. Investors include Dutch development bank FMO and a number of Dutch high net-worth individuals and institutional investors. Further financial details have not been released.