by Sarah Knapp -

MICROCAPITAL STORY: Nigeria’s Rivers State Government (RSG) Allocates $47.6m for Microfinance Scheme

Governor of the Rivers State of Nigeria, Chibuike Rotimi Amaechi, recently announced that Rivers State Government (RSG) has allocated the equivalent of USD 47.6 million to finance small and medium-sized enterprises. RSG has not specified how the funds will be delegated but in its previous micro-credit schemes, RSG has disbursed funds through commercial banks and microfinance institutions (MFIs). Amaechi stressed the RSG’s commitment to ensuring funds reach the poor, admitting that RSG still needs to “develop a system” in order to reach the poor, especially rural women. The micro-credit scheme is part of a larger empowerment program to increase education, health care and social service infrastructure.

by Emily Liu -

MICROCAPITAL STORY: Intercontinental Bank of Nigeria Partners with Nigeria’s Oyo State Government to Launch Microfinance Scheme

Intercontinental Bank Plc, a Nigerian based commercial bank, recently announced a microfinance partnership with the government of Oyo, a state in southwestern Nigeria. The Oyo government has set aside NGN 1 billion (approximately USD 8.6 million) to launch a microfinance scheme with the purpose of alleviating poverty, improving Oyo state’s current economic state and providing unbanked individuals with access to financial services. Details regarding specifics of the microfinance scheme were not released although BusinessDay Nigeria, a business print and online publication, reported that the funding would be used to establish a new microfinance bank. BusinessDay Nigeria reports that Oyo state government and Intercontinental Bank would split the equity share of the potential bank 50:50.

by Emily Liu -

MICROCAPITAL STORY: Nigerian Nonprofit Microfinance Institution, Development Exchange Centre (DEC), Loans Approximately $2.5m to Women in Northern Nigerian States

Development Exchange Centre (DEC) of Nigeria recently loaned NGN 292 million (approximately USD 2.5 million) to 30,000 women in various Nigerian northern states. In a set of statistics released by DEC, the organization said the loan was made in hopes to reduce poverty and enhance the economic status of women in the affected states.

by Emily Liu -

MICROCAPITAL STORY: United Bank for Africa Group Plc (UBA) of Nigeria Invests $25m to Establish Microfinance Subsidiary, UBA Microfinance Bank Limited

United Bank for Africa Group Plc (UBA) of Nigeria, the largest financial services institution by total assets in West Africa, recently announced that it will invest USD 25 million in initial capital to open a microfinance subsidiary, UBA Microfinance Bank Limited. UBA Microfinance was established to provide poor people who are un-banked or under-banked with access to financial services. UBA’s Chief Executive Officer, Tony Elumelu adds, “We have people in small businesses and they need some advisory services to enable them to run their business right. They have the potentials, the economic conditions are right; but they don’t know how to go about it.”

by Emily Liu -

MICROCAPITAL STORY: Central Bank of Nigeria (CBN) Approves Integrated Microfinance Bank Limited of Nigeria (IMFB) to Become a Nigerian “State Microfinance Bank”

The Central Bank of Nigeria, the Nigerian government’s central bank founded in 1958, recently gave Integrated Microfinance Bank Limited (IMFB), a Nigerian microfinance institution, approval to become a “state microfinance bank”, as affiliated with the Nigerian government.  This will allow IMFB to establish new branches in any of the 36 states of Nigeria. 

by Jennifer Lee -

MICROCAPITAL STORY: Central Bank of Nigeria Warns of Mission Drifting by Microfinance Institutions

At a seminar for Finance Correspondents and Business Editors, the Central Bank of Nigeria (CBN) said it was worried about microfinance banks (MFBs) drifting from their core functions. The CBN also expressed concern about the distribution of MFBs in the country and the lack of functional support institutions.

by Anthony Busch -

MICROCAPITAL STORY: The Lagos State Government (LSG) in Nigeria Announces New Microfinance Legislation

The Governor of the Lagos State Government (LSG), Mr. Babatunde Raji Fashola, announced a new microfinance bill which “will make it compulsory for all local governments in the state to contribute not less than one percent of their allocations to the operations of the microfinance banks in the state,” according to VANGUARD, a Nigerian daily newspaper. The Deputy Governor of the LSG, Mrs. Sarah Sosan, also “urged prospective loan beneficiaries to not see [the new legislation] as a gift, but as repayable obligations,” as reported by THISDAY, another Nigerian daily.

by Anthony Busch -

MICROCAPITAL STORY: The Managing Director of the Royal Trust Microfinance Bank (RTMB) Advocates Greater Collaboration between Microfinance Institutions (MFIs) and Insurance Firms in Nigeria

Speaking at the April meeting of The Nigerian Council of Registered Insurance Brokers’ (NCRIB) monthly lecture series in Lagos, Mr. Lucky Ologbo of the Royal Trust Microfinance Bank (RTMB) stated that, “since insurance brokers have numerical advantage and exist in all the nooks and crannies of the country, they are most strategically positioned to forge relationships with microfinance institutions, which also operate all over the country.”

by Anthony Busch -

MICROCAPITAL STORY: The Federal Executive Council (FEC) of Nigeria Approves $27.2m Loan from the International Fund for Agricultural Development (IFAD) for Rural Microfinance

The Federal Executive Council (FEC) of Nigeria, presided over by President Umaru Musa Yar’Adua, approved a USD 27.2 million loan from the International Fund for Agricultural Development (IFAD), as reported by AllAfrica.com. The loan, along with a USD 400,000 grant from IFAD, will constitute the core financing of IFAD’s Rural Finance Institution-Building Programme (RFIBP), a seven-year plan to strengthen rural microfinance institutions (MFIs) in Nigeria as well as establish increased linkages between MFIs and mainstream financial institutions. As stated in the September 2006 submission from the Executive Board of IFAD to the government of Nigeria, the official recipient of the loan is the Federal Republic of Nigeria and the loan terms are for 40 years, including a grace period of ten years, and a service charge of 0.75 percent per year (page vi). The Federal Ministry for Agriculture and Rural Development will implement the RFIBP (page 10).

by Stephen Son -

MICROCAPITAL STORY: South African Microfinance Institution (MFI) Blue Financial Services and Nigeria’s Intercontinental Bank to Launch $25.9m Microfinance Bank

Blue Financial Services (BFS), a South African microfinance institution (MFI), and Intercontinental Bank Plc, Nigeria’s largest commercial and retail bank by assets, are collaborating to launch a Nigerian microfinance bank capitalized at NGN 3 billion (USD 25.9 million), the largest such institution in the country.

by Jake Keller -

MICROCAPITAL STORY: Nigerian Government Creates $426m Microcredit Development Fund

Nigerian President Alhaji Musa Yar’Adua announced the creation of an N50 billion (the equivalent of over USD 426 million) microcredit development fund to be administered by the Central Bank of Nigeria (CBN). The new fund will be used to provide existing microfinance institutions (MFIs) with funding for credit creation and operational expenses.

by Anthony Busch -

MICROCAPITAL STORY: Treasure Microfinance Bank (TMFB) to be Launched February 26 in Lagos, Nigeria, and to Seek Listing on Nigerian Stock Exchange (NSE)

Dr. Tunde Ayeye, Chairman of the newly licensed Treasure Microfinance Bank (TMFB) headquartered in Lagos, Nigeria, announced on Tuesday that the bank will be officially launched on February 26th, 2008. According to Chairman Ayeye, the bank has secured NGN 50 million, equivalent to USD 432,000, of start-up capital and plans to reach NGN 1 billion (USD 8.6 million) within one year and become a listed company on the Nigerian Stock Exchange (NSE). TMFB does not report to the MIX Market, the microfinance information clearinghouse, and the Central Bank of Nigeria’s (CBN) listing does not provide any additional financial information. However, the CBN does report that TMFB is a registered microfinance bank since February 1st, 2008 and that it was formerly known as the Oja Odan Community Bank. Previous reporting on TMFB by MicroCapital can be found here.