John Ologe, Managing Director Davodani Microfinance Bank said most of the bank customers are importers, and that with the scarcity of forex, the funding they need to bring in items into Nigeria has almost doubled.
“We have had to strengthen our lending capacity and capital adequacy had to be looked into,” Ologe said. He noted this at Davodani Microfinance Bank rebranding event on Tuesday. The bank is now DD MFB.
Ologe also mentioned that microfinance banks have to run proper credit risk assessments on their customers before granting loans to ensure they can pay their loans due to of high cost of production, rising inflation, and FX scarcity, businesses now face.
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The Central bank of Nigeria had earlier increased the operating minimum statutory capital of State MFB from N100million to N1 billion and set the compliance date to end on April 30, 2022. Others are: Units from N20million to N200million and from N2billion to N5billion for National.
“We have a very strong credit risk process each of our customers goes through, we conduct due diligence on the customers and ensure that they have the sufficient cash flow to pay back the loans in these present inflationary environments,” he said
Davodani Microfinance bank, with aims, to strengthen past achievements, and usher in a new era of excellent service delivery and expansionary strategy of the Bank, Davodani microfinance rebrands and changes to “DD MFB”.
Austin Enajemo-Isire, founder DD MFB, said with this new brand identity, “we are now better positioned to provide unparalleled financial services to all consumers and potential customers of our products who will find no difficulties pronouncing and identifying with the acronym and new brand.
“ We have sharpened our tools of trade to dominate in the ever-challenging market space and leverage on our core values of integrity, high ethical standards, reliability, resilience, and passion for excellence, as distinguishing features of an exceptional player and a leading MFB in Nigeria, among its peers,” he said.
“Our numerous micro small and medium enterprise (MSME) customers, the unbanked and underbanked have been brought into the financial system now enjoying unhindered access to sustainable financial services,” he said.
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