Microfinance Operator Decries Massive Withdrawal From Sector

A microfinance operator in
Port Harcourt, Mr Valentine Nwosu, has decried the rate of massive withdrawal from Microfinance banks on the sudden demise of their operators.
He has also urged Nigerians to have confidence in microfinance institutions, and look beyond the operators.
Nwosu, who made this known to The Tide, last Thursday, also restated that the industry had already imbedded solid structures that would ensure the continuity of any of the banks in case of the operator’s death.
“This industry witnesses ‘RUN’, a situation where customers rush to withdraw money they deposited with the bank in event of the demise of an operator.
“Such conducts would not assist the industry to realise its objectives because it only leads to loss of confidence. It will also make the industry’s existence inattractive to new investors”, he said.
Nwoso, who is a member of the National Association of Microfinance Banks (NAMB) also expressed dissatisfaction with massive withdrawal attitude, adding that such could destabilise the industry.
He pleaded with Nigerians to give maximum support to the young industry, adding that there was room for improvement.
According to him, the banks operate as legal entities and are well insured by the Nigerian Deposit Insurance Corporation (NDIC).
He also disclosed that his association was doing everything possible to source for funds locally and internationally to ensure liquidity in the sector and ultimate help to Nigerians.

Corlins Walter