E-Financial
MDCL Accelerates Microfinance Industry Growth with Launch of Liquidity Platform
The Function Suite of Sheraton Hotel, Lagos, welcomed the crème-de-la-crème of the financial services sector on March 31, 2021 during a high-impact business forum for key stakeholders in the microfinance industry, organised by the Microfinance Development Company Ltd (MDCL), with the theme, “The 21st Century MFB: Leveraging Technology to Drive Financial Inclusion in the MFB Industry”.
Setting the tone for what was to come, the Chief Executive Officer of MDCL, Obinna Onunkwo, welcomed everyone to the event and said it was put together to address some of the critical challenges the microfinance industry was facing.
He also pointed out that, in line with its objective of creating a Shared Services platform for the industry, MDCL had entered into strategic partnerships with other companies to help them achieve their business goals.
One key partnership is that with InfoWARE, a software company that helped MDCL build the Intermember Liquidity Placement Platform (ILPP) which enables microfinance banks to place liquidity among themselves. Another one is with Stanbic IBTC to provide on-lending facility to its members, while the last one is the creation of a digital lending platform for microloans, built in partnership with Migo.
“It is important for all MFBs to unite and speak with one voice, so we can have a voice in the bankers’ committee meetings and be able to dictate policies that affect us as an industry,” Mr Onunkwo admonished.
Corroborating Mr. Onunkwo’s position, the Board Chairman of MDCL, Rogers Nwoke, opined, “financial inclusion had been a struggle for a very long time, and we are yet to meet the targets set by the CBN in that regard. One reason for that was the absence of liquidity for microfinance banks. MDCL is a response to the problem of funding. We are here to have a discussion on how to drive financial inclusion with technology, and we are going to crown the discussion with a launch of the Intermember Liquidity Placement Platform (ILPP).”
The President of NAMB, Alhaji Yusuf Ahmad Gyallesu, pointed out that the ILPP was a very good initiative and a dream come true for the microfinance industry, as it would provide them an opportunity to look inwards for liquidity, instead of looking outside. He then encouraged all microfinance banks to cash in on the solution to move their businesses forward.
While delivering the keynote address, Partner and Head of Technology Assurance at KPMG, Lawrence Amadi, said that, with a population of over 200 million people in Nigeria, over 80 million are financially excluded and microfinance banks have a key role to play in helping to reduce that number, in line with the CBN’s goal of having 80% of the population in the financial net.
According to him, “supporting innovative thinking is what MFBs must do in order to successfully drive change in the country. To do this effectively, they have to tap into technology to transform the entire financial sector.”
In a goodwill message by the Director of Other Financial Institutions Supervision Department (OFIS) of the CBN, Nkiru Asiegbu, who was ably represented by the Head of Microfinance Supervision, Idowu Akinlade, she mentioned that the event could not have come at a better time, considering that the industry is experiencing a high influx of FinTechs.
While commending MDCL for the great initiative to solve the liquidity challenge in the MFB industry through the ILPP, she pointed out that “innovations may solve some problems, but they may also create new ones.” It was therefore pertinent for the promoters to mitigate against server risk, operational risk, credit risk, compliance/money laundering risk, data security risk and other possible risks that may arise from the use of the platform.
The Director of Special Insured Institutions Department at the NDIC, J.J. Epiotodok, who was represented by the Deputy Director in charge of the Department, Adedayo Olukoya, congratulated MDCL for taking the bull by the horn and noted that the theme of the event was apt, considering the many challenges bedevilling the MFB industry.
“Financial inclusion is at the heart of microfinance banking, but the industry faces a dearth of cheap and long-term sources of funding, together with infrastructural challenges. This is why the ILPP is a very welcome initiative,” Mrs Olukoya opined. She further suggested that MDCL needed to partner with institutions like the Development Bank of Nigeria, Bank of Industry, African Development Bank, World Bank, Islamic Bank and other multilateral organisations to bridge funding gaps in the industry.
To contextualise the importance of ILPP, there was a panel session which was preceded by short presentations from the MD/CEO, Law Union & Rock Insurance, Ademayowa Adeduro; Partner at Bloomfield Law Practice, Adedoyin Afun; Product CEO, BankOne (Appzone), Mudiaga Umukoro; and MD/CEO of InfoWARE Ltd, Uwa Agbonile, represented by the Head of Sales and Marketing, Tereigh Ozakpo. The discussion centered around possible collaborations across different verticals, in furtherance of the financial inclusion objective of the federal government.
As the forum came to a close, the curiosity on the faces of attendees had lifted, as everyone could see a roadmap for the accelerated growth of the microfinance industry, leveraging the technological innovation of MDCL to solve perennial issues that had plagued microfinance banks in the past. Everyone left with a resolve to embrace new ways of doing business, riding on the strength of technology and strategic partnerships.
The Bank of Industry, through BOI Financing SPV Plc, has opened subscriptions for its inaugural Series 1 Fixed Rate Bond worth up to N250bn under its $1bn multi-currency instruments programme, seeking to raise long-term capital to finance businesses across Nigeria’s priority sectors.
The offer, which opened on 5 August and closes on 11 August, is being arranged by Chapel Hill Denham as the lead issuing house. The five-year bond is priced within a yield range of 17.35 per cent to 17.50 per cent and will be listed on the FMDQ Securities Exchange.
According to the offer document, proceeds from the issuance will be deployed to finance eligible businesses and projects across sectors, including agriculture and food processing, healthcare, engineering and technology, renewable energy, petrochemicals, oil and gas, creative industries and solid minerals, in line with BOI’s development finance mandate.
The lender said the financing is expected to improve access to medium and long-term funding for Nigerian enterprises, expand productive capacity, create and preserve jobs, deepen local value addition, support import substitution, boost exports and strengthen domestic value chains.
BOI, Nigeria’s foremost development finance institution, said it has provided funding to more than one million businesses across the country and disbursed over N1.27tn between 2023 and 2025. The institution operates across 34 states and the Federal Capital Territory and is jointly owned by the Ministry of Finance Incorporated and the Central Bank of Nigeria.
The bank also highlighted its financial performance, reporting a 36 per cent compound annual growth rate in gross earnings between 2021 and 2025.
Interest income rose 64 per cent to N884bn in 2025 from N538bn in the previous year, while its capital adequacy ratio stood at 39 per cent, nearly four times the regulatory minimum of 10 per cent. Its non-performing loan ratio was 1.7 per cent, below the CBN’s prudential limit of five per cent.
The bond has been assigned AAA ratings by Agusto & Co. and Intelligence Africa, reflecting the issuer’s strong capitalization, profitability, liquidity and ownership structure.
The issuance is open to institutional and qualified investors with a minimum subscription of N5m and additional investments in multiples of N1m. Interest will be paid semi-annually at a fixed rate, while principal repayment will begin in the third year through equal semi-annual amortised instalments until maturity in 2031.
The bond is also exempt from tax, making it an attractive investment option for investors seeking stable returns amid expectations of declining interest rates.
E-Financial
SEC Unveils Probate/Unclaimed Monies Clinic to Help Families Recover Inherited Investments
Securities and Exchange Commission (SEC) has intensified efforts to reduce unclaimed funds and other dormant investment assets by launching a Probate/Unclaimed Monies Awareness and Investor Clinic aimed at helping beneficiaries recover inherited investments and strengthening investor protection in Nigeria’s capital market.
Speaking at the opening of the clinic in Abuja organised by the Commission in partnership with Meristem on Thursday, Dr. Emomotimi Agama, director-general, SEC, said the initiative was designed to bridge the gap between investors’ legal entitlements and their ability to access inherited assets.
He noted that many Nigerian families face prolonged delays in accessing shares, dividends and other investments after the death of loved ones because they are unfamiliar with probate procedures, documentation requirements and registrar processes.
“For many Nigerian families, the death of a loved one who held shares, dividends, or other investments marks the beginning of a long and often confusing journey,” Agama said.
Describing unclaimed funds and dormant assets as a persistent challenge, he said they represent “real money that belongs to real families, sitting idle, disconnected from the people it was meant to serve.”
According to him, the Commission is committed to closing the gap through policy initiatives and direct engagement with investors.
He explained that the clinic brought together the Federal Ministry of Justice, the Probate Registry, the National Population Commission and capital market registrars to provide practical guidance on probate procedures, required documentation and the recovery of inherited investments.
“Today is not simply an awareness session. It is a working clinic, designed to equip you with practical knowledge: how probate works, how to obtain the right documentation, and how to recover what is rightfully yours,” he said.
Agama stressed that SEC’s mandate to protect investors extends beyond the lifetime of shareholders.
“This Commission exists to protect your rights in the capital market, and that protection does not end when a shareholder passes on. It extends to ensuring their beneficiaries can access what is due to them without unnecessary hardship,” he added.
Also speaking, Ms. Nkechinyelu Okoye, acting chief executive officer, Meristem Registrars and Probate Services Limited, identified lack of awareness and poor estate planning as key reasons billions of naira in financial assets remain unclaimed.
“There are three categories of beneficiaries that we encounter quite often. The first are those who think only land, houses and other physical assets can be transferred legally from deceased loved ones. They do not realise that financial assets such as shares, fixed income investments and even money in savings apps also form part of an estate,” she said.
Okoye said another group consists of beneficiaries who are unaware their deceased relatives owned financial assets, while a third group knows the investments exist but does not understand the claims process or required documentation.
“I dare add a fourth category. These are investors who do not provide or update their KYC documents and, as a result, when they pass on, their loved ones have no idea they have investments to claim,” she said.
According to her, these factors have contributed to the rising volume of unclaimed dividends, dormant accounts and other abandoned financial assets.
“All of these categories contribute to the several unclaimed assets lying all around. Ultimately, financial resources that could have been beneficial to these beneficiaries remain inaccessible,” she said.
She described the investor clinic as more than an awareness programme, saying it would provide practical support to investors, beneficiaries, executors and administrators.
“Our goal is to empower investors, beneficiaries, executors, administrators and the general public with the knowledge they need to navigate probate and estate administration with greater confidence,” Okoye said.
She also urged investors to prepare valid wills, maintain accurate shareholder records and regularly update their Know Your Customer (KYC) information to make it easier for beneficiaries to access inherited investments.
“We want investors to appreciate the importance of preparing a valid Will, maintaining accurate shareholder records and ensuring that their affairs are properly organised. Taking these simple steps today can save families considerable stress and delay in the future,” she added.
The SEC said the clinic forms part of its broader investor protection strategy and provides participants with direct access to experts on tracing investments, verifying shareholder records, resolving probate-related issues and recovering unclaimed capital market assets.
Nigeria Deposit Insurance Corporation (NDIC) has reassured on the multiple layers of protection for the Nigerian banking industry with more than 98 per cent of depositors and 281 million accounts insured by the corporation.
Thompson Sunday, managing director, NDIC, gave the assurance in Lagos at the retreat for members of the House Of Representatives Committee on Insurance and Actuarial Matters.
He said that striking the right balance between innovation, consumer protection, and financial stability remains a key policy imperative.
The theme of the retreat was “Strengthening the Financial Safety Net in an Era of Banking Sector Recapitalisation and Fintech Innovation”.
He said the increasing digitisation of financial services has heightened exposure to cyber threats, fraud, data breaches, and operational risks.
He said that with banks’ adoption of emerging technologies, regulators and safety-net participants must remain proactive in identifying and mitigating these risks while encouraging innovation.
Sunday also highlighted the rapid growth of financial technology (fintech) which has revolutionised the way financial services are delivered.
He said: “Digital banking platforms, mobile money services, payment solution providers, and other fintech innovations have expanded access to financial services and accelerated progress toward financial inclusion. Millions of previously unbanked and underserved Nigerians now have access to formal financial services through digital channels”.
He said that as the banking industry adjusts to higher capital requirements and technological innovations reshape financial service delivery, adding that its imperativefor banks to reinforce rules that safeguard financial stability and protect depositors’ funds.
According to him, a strong and well-coordinated financial safety net system is necessary for maintaining stability and resilience in any modern financial system.
“It promotes public confidence, protects depositors, supports orderly resolution of distressed financial institutions, and helps prevent systemic crises. At a time when Nigeria is pursuing ambitious economic growth objectives, including the goal of attaining a one trillion-dollar economy in 2030, a robust and credible financial safety net is essential to maintaining depositors’ and investors’ confidence and enhancing financial system resilience,” Sunday said.
He said the recently concluded banking sector recapitalisation programme represents a significant milestone in strengthening the capacity of Nigerian banks to support economic development.
“Well-capitalised banks are better positioned to absorb shocks, finance large-scale investments, support enterprise growth, and withstand periods of economic uncertainty. However, while recapitalisation enhances the resilience of financial institutions, it must be complemented by effective regulation, sound governance practices, strong risk management frameworks and good compliance culture, all attribute of a reliable financial safety net,” Sunday said.
He said the stability of the financial system depends largely on the trust that depositors and investors place in financial institutions.
He said: “History has shown that where confidence is low, distress can spread rapidly, threatening the stability of, not only the financial system but the wider economy. It is, therefore, essential that institutions responsible for financial stability continue to strengthen measures that preserve and enhance public trust.
Also speaking, opening remarks, Ahmadu Usman Jaha, chairman, House Committee on Insurance and Actuarial Matters, said financial systems across the globe are being reshaped by rapid technological advancement, digital financial services, artificial intelligence, cybersecurity risks, and changing customer expectations.
He said Nigeria is undertaking one of the most significant banking recapitalisation exercises in its recent history, requiring banks to strengthen their capital base while remaining innovative, resilient and competitive.
“These developments present enormous opportunities for economic growth, financial inclusion and innovation. However, they also introduce new categories of systemic risks that require stronger institutions, modern regulatory frameworks, and robust financial safety nets capable of maintaining public confidence under all circumstances,” he said.
He explained that Nigeria’s banking industry continues to occupy a central position in our economy with banking sector assets running into several trillions of naira and serving tens of million of depositors across conventional banking channels and rapidly expanding digita platforms.
“Equally important is the rapid expansion of financial technology. While fintech innovation has significantly increased financial inclusion and payment efficiency, it also raises complex issues relating to cyber resilience, operational risk, consumer protection, digital fraud, and the scope of deposit insurance coverage. These are issues that require continuous legislative attention and collaborative policy responses,” he stated.
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