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Experts Want Consideration In Microfinance Market

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16 years ago

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Experts in the financial sector have called for consolidation in microfinance market, if it wants to compete with other around the world.

Mr Michael Barleon, managing director of AB microfinance bank while canvassing for consolidation said, the process should be a situation whereby the bigger microfinance banks consume the smaller ones, to build strong capital base.

However, the Central Bank of Nigeria (CBN) has given approval to over 900 operators to operate in the microfinance market. Because of this numbers, over 200 MFBs, representing 22 per cent of the number reside in Lagos State, even though the apex bank has yet to halt MF License.

Reacting to this, Barleon said, though the idea of CBN might be encouraging because of the rate of poverty in the country, he however moved for institutions that are financially strong to empower more lives.

He state that the number of microfinance institutions in the country is too large and are performing below expectation.

He believes that consolidation process will bring about microfinance institutions with strong capital base. Institutions with strong capital base, he said, is capable of making meaningful impact, urging microfinance firms to upgrade their capital strength to really extend financial assistance to the people.

While stating that the N20 million capital base for a unit-based MFB is too small, he called on the regulatory authority to review the capital base, such that, institutions would not face illiquidity, just as it is happening in the industry.

The bank boss however said, after the consolidation must have been concluded, institutions in the market would be very strong to withstand the test of time.

Strong capital base at times, he stressed, may not achieve the desired result if management in place is fraudulent and therefore called for good credit and loan management system from operators.

Deposit mobilisation and good loan recovery, he said should be the two core instruments to drive financially strong MFBs to the land of promise.

According to him, if you have good deposit mobilisation and loan recovery teams coupled with strong capital base, there is strong indication that you are going to dictate the market.

He therefore advised his colleagues to not only build strong capital base, they should also streamline their products to meet the yearnings and aspiration of their customers.

This, he hinted, is key to success in the industry.

Reacting on why some microfinance institutions failed in Nigeria, he noted that their inability to fine tune well packaged products to meet the demands of their customers led to their downfall.

To him, “when you don’t have a good credit product to sell, it makes it difficult to grow a financial institution.

There are a lot of MFIs but as far as I understand, they work with completely different products and concepts, with many of them asking for voluntary saving but are very hesitant to grant loans”.

Also canvassing for consolidation of operators in microfinance industry, Mr Ismail Radwan, senior economist, World Bank, Nigeria says, this is necessary to reduce the number of MFBs to a considerable size capital of creating meaningful impacts.

He therefore called for merger and acquisition in the micro financial sub sector such that a MFB could financially strong and sound, thus having many branches.

“I believe there should be financially strong MFBs with many branches rather than having many microfinance banks with little or no branches”, he observed.

This, he said, would make monitoring and supervision simple and less stressful for the CBN.

The World Bank Chief pointed out that the present system would not give room for rapid growth and development as it is been witnessed in other microfinance markets worldwide.

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Boat Mishap Kills Pastor, Wife And Church Members  In Brass Water

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6 days ago

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May 18, 2026

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A boat accident in Bayelsa state has killed a serving Pastor, Wife and other church members along Brass waterways
The sad incident happened at Odioama in Brass local government area of Bayelsa State when the Pastor, wife and  members of his church were in a programme.
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?Tide confirmed that the lifeless body of the Pastor’s wife has been found and deposited in a mortuary while the remains of her husband ,the Pastor is yet  to be recovered
as search party are still ongoing.
Although the real cause of the boat Mishap is not yet known as at the time of this report,  our Correspondent gathered  that the identities of the Pastor, wife and church members were not disclosed to the public.
The mishap, Tide gathered occurred on Friday morning when the church members were on a boat transit
The Bayelsa State government and the state police command are yet to issue official statement’s  on the sad accident
By: CHINEDU WOSU
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Rivers Workers Seek Scrapping Of Contributory Pension Scheme

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6 days ago

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May 18, 2026

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The Rivers State Council of  Nigeria Civil Service Union has called on the State Government to urgently scrap the contributory pension scheme, describing it as unfavourable to long-serving civil servants in the state.
Chairman of the union, Chukwuka Osuma, said this in an interview with newsmen in Port Harcourt,  recently.
Osuma said the current pension structure has continued to worsen post-retirement hardship for workers.
He noted that  the contributory pension scheme had failed to provide adequate retirement security for workers who had spent many years in service, especially those approaching retirement age.
According to him, civil servants who had served for more than 20 years were among the worst affected under the scheme, insisting that many retirees could no longer cope with prevailing economic realities.
He also  informed that the Union has made moves to showcase their concerns, pleading with Governor Siminalayi Fubara to abolish the pension policy and introduce a more favourable arrangement for affected workers.
“The union was not opposed to pension reforms, the contributory scheme should only apply to newly employed workers or those with fewer years in service”, he said.
Osuma explained that workers who had already spent decades in the civil service ought to remain under a more secure pension structure capable of guaranteeing stability after retirement.
The labour leader further noted that inflation and the rising cost of living had continued to erode the value of retirement savings, thereby increasing the suffering of pensioners across the country.
He also appealed to the state government to consider extending the years of service in the civil service from 35 to 40 years and the retirement age from 60 to 65 years.
Osuma argued that such adjustment had become necessary in view of present-day economic realities and changing conditions in the workplace.
The unionist also reviewed that similar policies had already been adopted in some sectors and jurisdictions, expressing optimism that the State could also implement the reforms for the benefit of workers.
He however, commended Governor Fubara for approving an N85,000 minimum wage for workers in the state, noting that the amount was above the national benchmark of N70,000.
Osuma also acknowledged the government’s efforts in the area of workers’ promotions and bonuses, but insisted that pension reforms and extension of years of service remained critical to the long-term welfare and stability of civil servants in Rivers State.
By: King Onunwor
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FG Begins South-West Tour To Promote New Cooperative Bank

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2 weeks ago

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May 13, 2026

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The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.
 Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.
According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.
Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.
“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.
The minister noted  the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.
According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.
Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.
He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.
“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.
He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.
“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.
Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.
“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.
“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.
Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.
She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.
Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).
“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.
“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.
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