Micro finance bank records 98% loan repayment
Hope Ikwe, Jos
The First Lowland Microfinance Bank, Mabudi has recorded 98% performance in repayment of loan granted to farmers tagged within a period of four years.
Amos Balami, the bank’s CEO, at bank’s9th annual general meeting noted that the product (Nbol-Iram) has “continued to perform creditably with loan repayments in excess of 98% over four years and this has brought economic empowerment to the rural farmers who otherwise would not have been able to access any form of financing for increased agricultural activities.”
Balami while maintaining that despite challenges, the bank has made substantial progress and needs to be encouraged, laying emphasis on the achievement of Nbol-Iram, a flagship product of the bank, further disclosed the bank’s focus in the future is “to raise shareholders’ fund to the minimum of N200m to take advantage of the opportunities derivable from economies of scale as well as the new window of branchless/agency banking which has the potential to increase our reach at minimal cost.”
Similarly,Edna Tinat , the acting branch manager of the Central Bank of Nigeria , Jos, in her address at the meeting of the micro finance bank also noted that despite several challenges encountered in the sector, a significant achievement has been recorded in the access to finance in the rural areas .
She therefore urged the bank’s shareholders to “consider strongly a remarkable increase in your authorised and paid up share capitals, which would ensure that you meet the recapitalisation requirements of the CBN in order to retain your operating license.”
Meanwhile, Jonah wuyep, the chairman, board of directors of the bank, called on shareholders to plough back their profit as shares to enable the Board do more for the bank.