Business
AMCON Hails Rescued Banks
Executive Director, Finance and Operations, Assets
Management Corporation of Nigeria (AMCON), Mrs Mofoluke Dosunmu said that the
bridged banks have earned the confidence of the investing public.
The bridged banks, namely: Keystone Bank Ltd., Enterprise
Bank Ltd and Mainstreet Bank Ltd., are the defunct BankPHB, Spring Bank and
Afribank, respectively.
Dosunmu made the assessment of the Central Bank of Nigeria
(CBN)-rescued banks at an interview with newsmen in Lagos.
Evaluating the one year operations of the three banks, the
AMCON Executive Director said that the healthy and unhealthy segregation among
the banks had fizzled out.
“In the first place, we have confidence back in the
industry. Before now, we had a kind of segregation in the market, some banks
were healthy, some were not healthy. Now, you don’t have that anymore.
“Because what we saw was that initially when the bridged
banks started, they did lose some depositors’ funds. But when the customers saw
that anytime they walked into those institutions, they can get their money back,
they started banking with them,” she said.
According to her, the bridged banks have also reduced their
cost of funds as current account balances constitute the bulk of their
deposits, unlike a year ago when term deposits with high interest rates, were their
major deposits.
“The bridged banks have reduced their reliance on term
deposits. In terms of percentages, current account deposits increased from
about 30 per cent to almost 50 per cent,” she said.
Dosunmu said that the new confidence level in the banks had
also resulted in their reduced cases of fraud and improved earnings from other
income sources like fees and commissions.
She said the happiness of the corporation stemmed from the
fact that Nigerians do not just deposit money in the rescued banks’ current
accounts, but also do business with the banks, as noticed from their commission
on transactions.
According to the AMCON director, the bridged banks have not
only recovered, but are on the part of growth.
“A lot of waste has been stopped. Leakages have been closed.
There have been some adjustments in their staffing, whereas people that were
not really contributing to the bottom line of the banks have been successfully
exited.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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