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AfDB Inaugurates N1Bn Support for SMEs Development Through Fortis bank

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The African Development Bank (AfDB) has inaugurated N1 billion loan through Fortis Microfinance Bank Plc to help boost Small and Medium Enterprises (SMEs) development in the country.

Mr Ilan Wolkov, a Consultant with AfDB , said at the inauguration that the disbursement would be done through four branches of the bank in Abuja.

Wolkov, the Team Leader of Frankfurt School of Finance Management said,“this is the official opening of the pilot phase that we are setting up in four branches in Kubwa, Dei-Dei, Mararaba, and Utako’’.

“The fund is meant to specifically fund businesses of SMEs customers, and what is important today is that we are officially signing our first Fortis/ AfDB pilot client under this scheme.

“We believe that funds will greatly increase customer’s experience with possibly larger loans with its flexible conditions for collateral and guarantees,’’

It would be recalled that AfDB and Fortis Micro Finance Bank Plc had in Sept. 2016 signed an agreement for a one billion naira credit facility for onward lending to SMEs operators in the country.

The partnership was meant to boost Nigeria’s private sector development through the financing of projects that are strategically aligned to the country’s development agenda.

Also speaking, Mr Adewale Aderounmu, the Executive Director, Development Finance of Fortis reiterated that the fund was to primarily support the development of small businesses in the country.

According to Aderounmu, small businesses are the engine of growth for any economic development both in developing countries and even the developed world.

“So, the AFDB in support of the SME sector in Nigeria evaluated the bank and deemed it viable to partner with us as our developing partner in developing the SMEs sector in Nigeria.

“Up till now, more than 600 customers have benefited from the AfDB loan and after this event, we still expect to disburse a number of additional loans under the SMEs funding from AfDB.’’

On criteria for accessing the fund, Aderounmu said the applicant must already be in business as the fund was not meant for startup but for business owners to take their businesses to the next level.

He noted that the facility was open to both already existing and new customers of the bank.

According to him, the bank has assigned officers who not only market the loan to customers but also ensure that the loans are paid back as at when due.

He said the loan officer or relationship manager as they were being called, were attached to every loan beneficiary to continuously engage the customers to ensure continuity of the business relationship.

A beneficiary of the facility, Mrs Nkiru Nwabueze commended the management of Fortis bank for the good work they had been doing over the years in assisting small businesses in the country.

Nwabueze expressed delight at the facility she was given and urged other customers to develop the culture of borrowing money and paying back when due.

“We should be more honest in doing business with the banks as they are willing to give loans and we need to develop the culture of paying back loans as it is the only way to grow the economy.’’


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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