Association Charges Microfinance Banks On Spending

The Chairman of National Association of Microfinance Banks (NAMB), Lagos State chapter, Mr Dele Oyekanmi, has urged microfinance banks executives not to spend much of their resources on rent.

Oyekanmi, who gave the advice while interacting with journalists in Lagos noted that what matters most in microfinance business is the quality of service that is rendered, but not the size of the building occupied.

“You do not need a gigantic building to run a microfinance bank. What matters most is the quality of service the bank renders to its customers. Most times, we have to use our generators to supply electricity, we need to do business which ends up as an extra operating cost”.

“It will definitely be a sound business decision to spend less on rent so as not to have a disappointing balance sheet at the end of the month,” he said.

According to the chairman, microfinance banking is a low profile business that should not entail huge capital outlay, adding that the business environment in the country was forcing microfinance banks to spend extra on logistics.

He said that the poor application of ICT and under- utilisation of modern technology were responsible for the low volume of business in the microfinance bank subsector.

Oyekanmi further stated that the microfinance banks would have been yielding more returns, if there were developed infrastructure.