NAMB urges more efforts against poverty

THE Chairman, National Association of Microfinance Banks (NAMB), Lagos Island Chapter, Valentine Whensu, has stressed the need for deliberate efforts by the various stakeholders to develop the microfinance sub-sector of the economy, to adequately alleviate poverty in the country.Speaking at the National Association of Microfinance Bank Lagos Island forum tagged 'Microfinance is working' recently in Lagos, Whensu explained that, microfinance banking was introduced to provide a platform for the under-banked segment of the economy, but regretted that they might not be able to meet the stringent requirements of the conventional banks.According to him, the misconceptions and apprehensions that some people have about microfinance banks is adversely affecting the growth of microfinance banks in Nigeria.He noted that the microfinance industry in Nigeria has been confronted with numerous challenges since the launch of the Microfinance Policy Framework in December 2005 and subsequent reforms. A significant number of the microfinance banks (MFBs) were deficient in their understanding of the microfinance concept and the methodology for delivery of microfinance services to the target groups.'It is better for Nigerians to know now that MFBs are banks for Nigerians. It is the grassroots bank that takes banking to the doorsteps of its customers.Nigerians should also understand that MFBs have good products that were formulated specifically to meet their every day banking needs and also the major advantage of having direct and first hand attention on their transactions.'Microfinance banks encounter an overwhelming array of regulatory constraints, which the CBN can address in their policy reform work. Microfinance banks as presently constituted are less inclined to engage in policy advocacy work because they lack resources, experience and cohesion,' he said.Also speaking, Chairman, Organising Committee, NAMB, Hakeem Omolabi, added that, 'we want to evolve an efficient and value creating association that will ensure best practices amongst member institutions for the benefit of all stakeholders.'He urged government to encourage the use of technology to increase outreach and service delivery at reduced cost and credit rating of MFBs to facilitate access to both local and foreign funds.As well as improved members access to funding to enhance liquidity, promote disbursement of poverty alleviation funds through the MFBs as agent of economic growth and assist member institutions to access CBN Microfinance Development Fund.
Click here to read full news..