Nigeria is set to launch a new microfinance bank with an extensive network of branches with planned presence in all 774 local councils o the Federation and the FCT will be launched this February.
The new institution, NIRSAL Microfinance Bank (NMFB) would particularly expand available options and empower Small Medium and Small Enterprises (SMEs) across Nigeria with structured microcredit to help them establish and expand their businesses.
BuisnessDay understands that the Bank which promises to revolutionize the country’s development finance sector is being set up by the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), the Nigeria Post Office and the Bankers Committee.
The specific objectives, according to authorities include: to drive and deepen financial inclusion; to provide easy access to credit and other financial services to SMEs; to reduce unemployment rate in the rural areas; and to reduce rural-urban migration.
NMFB, the first in the country is projected to reach an estimated 400,000 SMEs within the first two years of operation, Steve Olusegun Ogidan, National Coordinating Consultant of the project said on Thursday.
“The MFB is in strategic partnership with NIPOST with a view to leverage on NIPOST’s widespread offices, while NIRSAL would bring to bear its expertise and experience in financing low income entrepreneurs and de-risking of credits originated by the MFB by providing guarantees in line with its mandate.
“The Bankers Committee provided the set-up equity capital and owns 50 per cent of the bank, while NIRSAL and NIPOST own 40 per cent and 10 per cent respectively.”
Raising strong optimism on the success of NMFB, he explained that the bank would make use of extant structures to reach the most financially excluded Nigerians in rural communities.
As part of this strategy, NIPOST’s post offices located across the nation would provide easily accessible offices to urban and rural Nigerians.
“NIRSAL Microfinance Bank will be a game-changer which will complement and support existing structures and players in the sector to better serve the millions of small entrepreneurs in the country,” Ogidan added.
Speaking on the development, Aliyu Abdulhameed, Chairman, NMFB, described the new bank as the game-changer which would complement and support the existing structures and players in the sector to better serve the millions of small entrepreneurs and smallholder farmers in
the country. Abdulhameed is also the current Managing Director of NIRSAL.
“The mission and strategy of NMFB are focused on making significant, sustainable and measurable impact on small businesses across Nigeria and, by extension, on the lives of millions of Nigerians dependent on them in the overall interest of the economy. The bank will work with all relevant partners, stakeholders and players to achieve this,” Abdulhameed explained.
The launch is scheduled to take place simultaneously across the six geopolitical zones in the country and at the flagship branch in Gwagwalada, FCT.
The other pilot locations are locations are: Bauchi, Ibadan, Kaduna, Enugu, Port Harcourt and Lokoja NIPOST offices.
The rollout would further continue in other parts of the country eventually reaching all 774 Local Government Areas in the country.
Onyinye Nwachukwu, Abuja
