Obasanjo: MFBs Must Not Be Allowed to Die
Former President Olusegun Obasanjo has enjoined all stakeholders in the microfinance sub-sector not to allow the microfinance banks (MFBs) to die, in view of the present challenges facing the economy.
According to a statement, Obasanjo made the call during the recent visit of the National Executive Council (NEC) and Chairman of Board of Trustees of National Association of Microfinance Banks (NAMB) to him in Abeokuta.
“Government at all levels must do whatever is needed to ensure that this grassroots economy framework is supported to succeed,” he added.
Obasanjo in his remark also thanked the NEC and Board of NAMB for the visit and urged all stakeholders to continue to strive for the growth of the sub-sector. He recounted the achievements of the sub-sector since the MFBs policy was formulated in December 2005.
Earlier in his speech, the President of NAMB, Mr. Valentine Whensu said: “The subsector, which you pioneered in 2005, has grown and today it boasts of over four million clients with total saving deposits of N133 billion and loans amounting to N151 billion while shareholders fund is over N181 billion; generating employment for over 28,000 staff members from 968 microfinance banks spread across the federation.”
Whensu also called for the support of the government in the actualisation of the Unified IT platform called NAMBUIT, which he said had been an ongoing discussion with the CBN.
According to him, when the technology is approved, it would reduce costs, improve efficiency, increase outreach, promote rural banking, stimulate agent bank- ing and broaden the scope of financial inclusion.
Currently, more than 500 various software exist in the subsector and this has impacted negatively on MFB’s cost of operation thereby reducing their loanable amount.
Whensu added: “The current leadership of NAMB has in the last 18 months focused on repositioning, refocusing and rebuilding NAMB with the mission to make NAMB to be among the top 10 MFB network in the world in year 2020. To this effect, a 5-year strategic and financial plan was designed in February 2015 and in furtherance to this plan and in order to achieve excellent delivery of services to our stakeholders, we have aligned the organsational structure of NAMB into four strategic priorities namely: advocacy, capacity building, networking /partnership and self-regulation.”