13 February 2013

Nigeria: MFB Disburses N5 Billion Loans to Small Businesses

A Micro Finance Bank (MFB) in Abuja has said it disbursed N4.5 billion loans to operators of Micro Small and Medium Enterprises (MSMEs) in 2012.

Mr Jero Omare-Ogah, the Chief Strategy and Implementation Officer of Fortis MFB made this known in an interview with the News Agency of Nigeria (NAN) in Abuja.

Omare -Ogah said the beneficiaries include farmers, self-help groups, associations and low-income salary earners.

"We also have a large pool of beneficiaries from the micro-credit women because of the huge benefit and the uniqueness of our model," he said.

He praised the beneficiaries for a near 100 per cent repayment of the loan, saying, "We hardly recorded any default in the loan repayment."

"People always say poor people do not repay a loan, that's not true. It is the opposite; it is the rich who do not want to repay loans. The kind of model we run in Fortis MFB is unique. It makes it easy for people to repay loans," he said.

Omare-Ogah said that the bank's target was to increase its current customer base from 125,000 to 300,000 in 2013.

He said that the bank, which commenced operations in Oct. 2007, had an authorized share capital of N5 billion and over N1.33 billion shareholders fund.

He said that the bank had met the prescribed minimum capital requirement of N100 million to operate as a state MFB under the CBN Revised Regulatory and Supervisory Guidelines for MFBs in Nigeria.

He said that the bank intended to transform into a national MFB as it had currently increased its branch network to 11 within the Federal Capital Territory (FCT).


Copyright © 2013 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.