40,000 To Enjoy RIMA Loans

Rivers State Microfinance Agency (RIMA) has disclosed plans to disburse loans to about 40,000 indigenes of the state before the end of the first quarter of next year.

Managing Director of the bank, Mr. Innocent Iyalla Harry made the plans public during a two-day capacity building workshop on public policy micro-financing organised in collaboration with United Nations Development Programme (UNDP) for staff and other micro-finance operators yesterday in Port Harcourt.

Mr. Iyalla Harry said the target was the outcome of the success so far recorded in the second phase of the loan scheme through Rural Finance Institutions (RFIs) in 21 local government areas outside Port Harcourt and Obio/Akpor.

According to him, about 2000 citizens who had beneffited from the loans through the RFIs were mainly members of cooperative societies, adding that these cooperatives cover a spectrum of all businesses identified and done in Rivers state.

In the third phase, he disclosed that the cooperatives would be expanded to 25 each per local government with 14 members, while 70 of the same groups wouldl be established in Port Harcourt and Obio/Akpor, considered as urban centres.

He explained,”one advantage of this strategy is that these groups are self policing because they make sure members who take loans pay back, since they know the members than we do’’.

The RIMA boss further remarked that, “by first quarter next year, we will be able to hit the mark because it is a function of how receptive people are…and we also want to make sure people are paying back these monies. They should not think it is government give away.’’

Meanwhile, some stakeholders have called for more funding and regulation in the micro-finance sub sector to inject security and sustainability in the industry.

Victor Okhaimo of Premium Microfianance in Port Harcourt tasked the Federal Government to boost the industry through grants.

He argued that without grants, micro-finance institutions may resort to collecting collaterals to secure fund.

The same view was echoed by Mrs.Ann Anyaka, a banker, who stressed on sustainability of such banks.

She submitted, “you need to make sure that debtors don’t run away because the Nigerian environment stifles such banks to break even’’.

Anyaka called on micro-finance banks to seek alternative markets even though their main focus is social oriented.

Head Compliance and Business Development of RIMA, Mr. Ukela Okorji said the workshop will school stakeholders in the challenges in the industry and how to overcome them.

Okorji said the agency has made landmarks but noted, “we learnt quite a lot from our pilot scheme and this year we are still partnering with some banks.

“However, we have reversed a lot of our strategies because of the challenge we learnt from the previous phase.’’

L-R: President Goodluck Jonathan, receiving 'a Position Paper' from the leader of a delegation from Ogoniland, Senator Magnus Abe, during a visit to the President in Abuja, last Monday