Lagos State Microfinance Association Sets up Intervention Fund

Sep 2009
Lagos, Nigeria, September, 03 2009 - The Lagos State Chapter of thethe National Association of Microfinance Banks of Nigeria has set up an Intervention Fund to be used in addressing the problems of short term liquidity that is becoming a common feature in the microfinance sub-sector.

The Chairman of the chapter, Mr. Adenekan, said the Intervention Fund, which is contributory, is aimed at forestalling the occurrence of the crisis in the commercial banking sub-sector in microfinance sub-sector.

“The Intervention Fund, which would act as a form of bailout, is going to be contributory and would be used to assist members when the need arises. We are already talking to three commercial banks with the intention of appointing one to manage the Fund.”

Continuing, he said “If there is any sign of liquidity problems in any member-microfinance bank, a Technical Committee, which has been set up and saddled with the responsibility of closely working with our members, would look into the matter and determine how much would be given to the distressed bank as bailout.”

Furthermore, in a press statement issued by the association at the start of the meeting, the association maintained that microfinance banks’ operators need to be encouraged and supported by all for them to assist the poor achieve development.

“The most effective efficient and easy way to build a prosperous nation is to develop it ‘bottom up’ so as to ensure that the less privileged active poor is given the opportunity to develop and help others develop. It is the only vehicle for achieving development for the poor and it must be supported and encouraged by all.”

Furthermore, the statement pointed out that though there are always problems in all sectors of the economy, with the microfinance sub-sector not being exempted, but the association will work tirelessly to ensure that such problems are not allowed to damage the reputation of the sub-sector.

Meanwhile, the Lagos State Chapter of the association has elected officers to run the affairs of the association for the next 2 years.

They include: Chief D. O. Adenekan, who is re-elected Chairman; Messer S.O. Sorinya, Hon. Obasa, I.G. Iheanacho as vice chairmen; Mr. J.O. Ajayi as General Secretary; Mr. I Mbanugo as Treasurer; and Mr. E.A Odunusi as Assistant Treasurer,.

Others are Mrs. Babalola as Welfare Officer; Mrs. Clara Oloniniyi as Publicity Secretary; Messer. Phillip Okuabor, Akapo and L. E. Elemide as Secretary, Special Duties; Mr. Oluyole as Secretary, Training; Mr. B.A. Ayodele as Ex-official; and Mr. Kayode as Adviser.

Source : Vanguard

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