‘CBN  Intervention Fund to Stablise Micro-Finance Banks’

By Ugo Aliogo

The Managing Director of Daylight Micro-finance Bank,  Adeola Ilozobhie, has stated that the Central Bank of Nigeria (CBN) N220 billion Micro Small and Medium Enterprises (MSMEs) intervention fund will help micro-finance banks to stabilise, do businesses very well and serve the public better.

She noted that if the banks can have the intervention funds at a reduced rate, they will also be able to give it out at very reduced rate to their customers, adding that the intervention fund is expected to be given out at a single unit rate of nine percent.

Ilozobhie, who disclosed at the weekend during the one-year anniversary ceremony of the bank in Lagos, said if a customer is given a loan at nine  per cent per annum against the 24, 36 and 42 per cent, they will be able to do more and repaying  the funds will be easier.

The bank chief further stressed that if the interest is high, customers will not be able to make profit and paying back the loan will be difficult for them.

She added that  it will also be difficult for the banks, “If you are giving loans and it is not been repaid, your depositors’ fund will be  going down the drain and you will not be able to meet the depositors’ demand as at when due.”

She explained that the bank has been able to stand out in the last one year because of their unique customer oriented packages.

“We design our products according to the needs of our customers and the environment we find ourselves. This has enabled us to have more customers. Our interest rate is  two  per cent, with the highest been 3.577 and the processes are fast. We do buy over of loans, asset acquisition, LPO finance, salary account, micro-lease, and micro-mortgage, but the main thing is our interest rates. Our future projection is to move from State licensed micro-finance bank to national, from there to regional,” she stated.

According to her, Daylight micro-finance bank started operations with a total of 15 staff on April 15, 2015 with a paid up share capital of N100 million.

But today, we are proud to say that the staff strength has grown up to 30 with a customers’ base of 2,304. Total loans booked stood at N232.130 million and our gross earning as at March 31, stood at N46.904 million,” she said.

The Chairman of the Bank,   Akin Akinrera, stated that the journey has been wonderful, noting that presently, they are have a branch at Tejuosho in Yaba, and they want to extend to other areas of Lagos, such as Idimu.

Akinrera also acknowledged the efforts of the founding fathers of the micro-finance efforts in helping to attain a great height.