This is a solidarity note to my friends in the microfinance industry and, by extension, to the informal sector in general, knowing how intertwined the industry is with the sector. We are currently suffering from two key ailments; one being an outcome of the other, and both of which are making it difficult for us to sleep well. The first one is the respiratory illness caused by the pandemic called COVID-19 – some demonic member of a large family of viruses, not new to the world, but has mutated to something terrible and jumped out from its domain in Wuhan, China in September, 2019. Our hearts have been broken to many pieces, as we watch various networks, reel out the casualty figures. We have also been inundated with prescriptions for the cure of the disease, even as scientists have placed a disclaimer on the efficacy of any such prescriptions that claim to cure COVID-19. They insist the cure is yet to be found but acknowledge that there are drugs that can help us build up our immunity, which is the actual thing that kills viruses. The share volume of reading matter on the disease is mindboggling and that leads me to the second ailment we currently suffer – information overload.
Owing to the unresolved origin of the COVID-19 virus, even as many accuse the 5G – the fifth generation of wireless communications technologies supporting cellular data networks – as the cause, a lot of controversy and conspiracy theories have been pushed forward compounding our case. I hasten to restate that the jury is still out on the most important issues concerning the virus – its causes and cure! Now you are beginning to see why I called it a demonic attack. Well, in Nigeria, anything we don’t understand is demonic attack. The only difference between this and others is that this is probably the only demonic attack that has dared our prayer warriors. You will agree that both the shepherd and the sheep are now on the run. However, it is not that the shepherd is not strong enough to protect the flock. Rather it is because the wise stoops to conquer. This is why your pastor has retreated and advised you to stay at home. All true believers must take the advice and, as the Holy book says “be still and see that the salvation of your God”.
I would prefer to cut back on reading the materials being thrown out by the social media, especially as most of them are the opinions of contestants on the causes and cures of the pandemic. I believe this is the position of many already bugged down by these controversies. I will therefore avoid telling any story on COVID 19, beyond asking everyone to abide by the rules made by the political authorities regarding ways of ending the transmission of the virus. This is not the time to follow some primitive superstition about the invincibility of your ancestors and clan warriors. Besides, you have seen what is happening to the “Whiteman” whom your ancestors said were Spirits (or Demons) who could solve every problem. An Igbo proverb says: when the bare hands break bars of iron, the nearby trees wish they could flee”. COVID-19 will attack anyone who makes themselves available, notwithstanding the holy books in their hands, talk less of the charms in their pockets.
I would therefore like to emphasise the fact that the world will not end with COVID-19. Far from it. In fact, a better world is in the offing. It came like the night, but dark as it may be, day will follow the night without fail
I would therefore like to emphasise the fact that the world will not end with COVID-19. Far from it. In fact, a better world is in the offing. It came like the night, but dark as it may be, day will follow the night without fail. My interest is how those in the microfinance industry should conduct ourselves, and businesses, so as to protect their lives, business and market positions, while the night lasts. The first tip is for us to stay at home; wash our hands; wear our masks and report any suspicious symptoms we may experience.
I recognise the difficulties that may visiting our people whose economy is domiciled between their hands and mouth – hand-to-mouth economy. They have already run out of food. We see people getting aggressive and trying to force themselves on fellow hapless Nigerians and rob them of food items. That is as demonic as COVID-19. The first thing to acquire if one is to survive this pandemic is patience. We should be determined to survive. If we can riot over food in just over two weeks, what shall we do if Cameroun attacks us and a war breaks out as it did in 1967. We should not give the impression that all the fasting we claimed to be doing during special religious events is fake. How can people who fast for 40 days and nights riot over food in 14 days? However, government is not being absolved of its duty to provide general palliative that reaches all Nigerians and not just a few sections. Wise governments know that this is not the time to lie about use of public resources.
Second, microfinance banks must reach out to their clients, the MSMEs, who have learned to depend on them, and in some cases are indebted to them. A lender takes interest in the welfare of his debtors for many reasons, including humanitarian and commercial/economic. A creditor has the enlightened self-interest to help the borrow to stay alive, so as to improve the chances of repayment. In the annals of financing, only the usurious moneylender tends to want the borrower dead, so as to convert the underlying assets. Other reasons to protect the clients include the need to stay in their subconscious, even in these bad times so they don’t forget you when the day breaks, as it surely does.
Three, be wise like the pastors; use and show clients available alternative channels of transacting. Digitisation may have cost you some business in the past. This is payback time for you. The pastors have given their followers all the online information needed to keep the offering coming. They are not commercially oriented. Why not you? One of the misconceptions about the poor, which microfinance came to correct, is that the poor have no money and therefore have nothing to save. Common be smart! You disproved this fallacy in Microfinance 101 class. The clients may still need savings opportunity, even in the lock down. Give them the help to do so.
Fourth, for long, I have been telling you that cost minimisation is the fair side of revenue maximisation. Most people, not just you, find this simple concept hard to understand. Even our national and subnational governments find it so hard to understand. This is why they keep looking for more taxes from failed economic agents, and run yoyo with oil prices. If your income falls or if you can’t make money at all, look at your expenses. Cut them.
