Davodani Microfinance Bank Limited has expanded its operations to Ajah, a move that reflects the bank’s outlook on the rapidly growing area with a lot of potential for small businesses and hence provides funding.
John Ologe, managing director and chief executive officer, DavoDani Microfinance Bank, said the bank sees Ajah as the future of banking due to the upcoming Dangote refinery, new seaport, and proposed airport.
He said this at the opening of the new branch in Ajah, Lagos on Wednesday.
“This area is expanding, Dangote refinery is creating a lot of opportunities, the new seaport, I understand that an airport is coming this way. So, this is the future of banking. There’s going to be a lot of businesses around here and we want to take advantage of it,” Ologe said.
He said that the present economic situation has enabled them to help the Small and Medium Enterprises (SME) segment because our major business is funding.
“People we were giving N1 million before, now need about N3 million because of inflation; Nigeria’s exchange rate has affected many more people,” he said.
Austine Enajemo-Isire, the founder and board chairman, DavoDani Microfinance Bank Limited, said the bank decided to open a branch in Ajah to serve the unbanked, underbanked, and underserved in the area.
“The regulatory framework governing microfinance bank institutions created by the Central Bank of Nigeria (CBN) is actually aimed at bringing the unbanked, underbanked and underserved into the financial system,” Enajemo-Isire said.
Enajemo-Isire also emphasized the importance of microfinance banks in empowering SMEs.
“We pride ourselves that we have assisted a lot of small businesses that were dying. Today they are surviving and are providing employment and expanding the economy’s bedrock today. The regulatory framework by CBN forbids microfinance banks from doing foreign exchange transactions. So, our main focus is providing financial empowerment to the SME,” he said.