NAMB Harps On Micro-Finance Public Enlightenment

The Chairman, Ikeja branch of the National Association of Micro-finance Banks (NAMBs), Mr Dele Oyekanmi, has called for improved public enlightenment in the micro-finance industry.
Oyekanmi said in Lagos on Thursday that the development would encourage more investment in the micro-finance sub-sector.
He said that a lot of people were afraid to deposit money with micro-finance banks because they were unaware of its viability.
‘’A lot of people do not trust micro-finance banks with their capital.
‘’The people are scared that they might lose their money whenever the bank goes under,’’ he said.
Oyeknami said that improved sensitisation would help to correct that public misconception.
The chairman said that the Nigerian Deposit Insurance Corporation was always ready to refund any depositor whose money was trapped in a failed micro-finance bank.
Oyekanmi, who is also the Managing Director of Moneywise Micro-finance Bank, noted that the micro-finance sub-sector had been challenged with inadequate funding since inception in 2005.
He said that savings from individuals would increase liquidity in the industry and ultimately lead to a reduction in lending rates.
‘’Lending rates in the micro-finance bank is between five per cent and nine per cent, depending on the financial strength of the bank.
‘’Micro-finance bank is a huge industry that should not be left alone for the Central Bank of Nigeria (CBN) to finance,’’ he said.
Oyekanmi appealed to wealthy Nigerians to invest in the micro-finance industry, to enable the sub-sector to fulfil its mandate of assisting the enterprising poor to grow their businesses.