Echo MFB targets N1bn capital for State licence in 2020

Echo Microfinance Bank Limited, a customer focused bank has signaled plans to raise its capital from over N50 million to N1 billion in order to operate a State licence bank next year.

The Central Bank of Nigeria (CBN) had in March 2019 reviewed the minimum capital requirements for microfinance banks, allowing for installmental payment and categorisation of Unit Microfinance into two of Tier 1 and Tier 2.

Echo MFB is classified under rural licence with capital requirement of N50 million but the bank’s capital base is above the requirement.

“Our thinking is that we are going to go state wise having operated in the rural. We want to move to the urban proper come 2020 and to tap into other markets we have not been able to move into because of our limitation,” Ndoma Ndoma Odey, managing director/CEO of the bank said.

Speaking at the bank’s promo/target end of year ceremony in Ikorodu, he said, the bank has been able to sustain itself for 10 years.

“Our authorized share capital is N100 million and fully paid is N83 million. The new capital requirement for state-wise MFBs is N1 billion. Our target is that we want to move to N1 billion so that we can operate outside the axis we are already operating and tap to other local government within Lagos”.

The bank on Thursday recognized and appreciated about 2,507 customers who are major savers and have been loyal and supportive to the bank.

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Consequently, the bank gave out various reward items ranging from sewing machines, phones, toasting machines, blenders and iron among others.

“We want to reward customers that are very loyal and supportive to this bank. These people you see here contribute from January to December. They are good savers without withdrawal. Today we want to reward them for their loyalty,” Odey said.

Odey who fully joined the bank in October 2019 has within three months disbursed a total of N28 million loan to active borrowers.

“We are looking at a loan target of N1.1 billion and we are looking at having profit before tax of N58 million. We are targeting about N288 million to be disbursed in the four quarters”, he said.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.