NIGERIA’S development finance sector is set for a revolution as a new microfinance bank with an extensive network of branches with a planned presence in all 774 local councils of the Federation and the FCT will be launched this month.
The launch of the bank jointly owned by the Bankers Committee, NIPOST and NIRLSAL are 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.
Broadly, the new institution, NIRSAL Microfinance Bank (NMFB) will expand available options and empower SMEs across Nigeria with structured microcredit to help them establish and expand their businesses.
According to a statement from National Coordinating Consultant, NIRSAL MFB, Dr Steve Olusegun Ogidan, specific objectives of the bank include driving and deepening financial inclusion; providing easy access to credit and other financial services to SMEs; reducing the unemployment rate in the rural areas and to reduce rural-urban migration.
“NMFB is projected to reach an estimated 400,000 SMEs within the first two years of operation.
“The NMFB is a brainchild of the Bankers Committee, NIRSAL, and the Nigerian Postal Service, NIPOST.”
Ogidan said 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.
“As part of this strategy, NIPOST’s post offices located across the nation will 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,” he added.
Ogidan also quoted the Chairman, NIRSAL, MFB, Mr Aliyu Abdulhameed as describing the new bank as the game-changer which will 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.
“The mission and strategy of NMFB are focused on making a 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.”
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