News
Microfinance Development Company to Launch Liquidity Management Platform
The Microfinance Industry in Nigeria is set to experience a major breakthrough in its operations, as the Microfinance Development Company Ltd (MDCL), plans to launch its Intermember Liquidity Placement Platform (ILPP) during a high-level business forum for key stakeholders in the microfinance industry.
The event, which is being organised by MDCL, will hold on March 31, 2021 at Sheraton Hotel, Lagos, and will play host to Managing Directors of Microfinance Banks and key decision makers in the banking, technology, SME and financial services industries.
Rightly themed, “The 21st Century MFB: Leveraging Technology to Drive Financial Inclusion in the MFB Industry”, the event will focus on liquidity management, risk asset creation and other macroeconomic challenges faced by the microfinance industry, with a view to proffering viable solutions to them.
The Keynote Speaker at the event is Lawrence Amadi, a Technology Advisory Partner at KPMG. He will be joined by other seasoned captains of industry and thought leaders drawn from different business verticals. Some of them include the Chief Executive Officer of MDCL, Obinna Onunkwo; Managing Director of InfoWARE Ltd, Uwa Agbonile; the Chief Executive Officer of Appzone Ltd, Obi Emetarom; the Managing Partner of Bloomfield Law Practice, Doyin Afun; and the Managing Director/CEO of Law Union and Rock, Ademayowa Adeduro.
Speaking about the upcoming event, the Chairman of MDCL and Founder of Hasal Microfinance Bank, Rogers Nwoke stated, “the Microfinance Banks (MFBs) are critical to Nigeria’s financial inclusion goals, particularly because of their role in providing financial services to the underserved segments of the Nigerian economy.
However, the industry witnessed a high failure rate in the past, owing largely to issues of poor corporate governance, weak liquidity position, high cost of funds and the harsh realities of the Nigerian business environment, among other factors. This event has been put together to address one of those critical factors, which is the challenge of liquidity.”
He further noted that the Central Bank of Nigeria (CBN) has deployed measures to strengthen corporate governance and enhance sustainability, going by the revision of minimum capital requirements for microfinance banks. MDCL is complementing the effort of CBN by providing credit facilities, liquidity management and also strengthening compliance with statutory requirements by the beneficiary MFBs.
When asked about the Intermember Liquidity Placement Platform (ILPP) which the company is launching on the day of the event, the Chief Executive Officer of MDCL and Managing Director of PurpleMoney Microfinance Bank, Obinna Onunkwo said, “as a company, we have successfully developed an online trading platform for use by microfinance banks registered in Nigeria, to securely place liquidity among themselves. This is in line with our objective of facilitating funding for microfinance banks to provide affordable loans to MSMEs and the financially excluded population.
“We have also created a Digital Lending platform for Microloans under the Shared Services initiative for the industry, and it will be formally introduced to the public at the event. Our goal is to assist the MFBs address the challenges of short-term liquidity, thereby allowing them to grow in a sustainable manner.”
A very notable figure in the Microfinance Industry and Founder of LAPO Microfinance Bank, Dr Godwin Ehigiamusoe, made a strong argument in favour of the platform.
According to him, “deposit mobilization is very critical to the success of MFBs. Sadly, the industry does not enjoy the same benefit of interbank liquidity trading which commercial banks have access to via the Scripless Securities Settlement System (S4) trading platform, under the auspices of CBN.
“That arrangement allows banks to access trade of overnight and other short-term instruments to meet daily cash obligations. The MFBs need a similar arrangement to meet their cash obligations, but that has been non-existent till this moment. I am happy that MDCL has decided to find a solution to this perennial challenge.”
The event is being organised in partnership with technology giant, InfoWARE Limited, a company that is ultimately committed to empowering the financial ecosystem across Africa with real-time market data and powerful software solutions.
Other partners include Appzone Limited, a renowned pan-African software solutions company; Law Union and Rock Insurance Ltd, the insurance company of choice in Nigeria; Bloomfield Law Practice, a foremost full-service law firm; and Stanbic IBTC Bank.
Incorporated in 2019, Microfinance Development Company Limited (MDCL) is a private-sector led Special Purpose Vehicle (SPV) conceived by the National Association of Microfinance Banks (NAMB) to primarily address the problems of liquidity and capacity in the microfinance industry.
The company sources, manages and disburses funds to MFBs in order to build sustainable institutions that would fulfil their collective social mandate of lending to the active poor and micro/small enterprises. In addition, it also provides capacity-building support to the beneficiary institutions.
The African Development Bank (AfDB), has disclosed plans to work with the Lagos Metropolitan Area Transport Authority (LAMATA), to boost the state’s transport system with the development of another rail line.
This was contained in a statement signed by, the Head, Corporate Communication, LAMATA, Mr. Kolawole Ojelabi in Lagos.
Ojelabi said that the AfDB Vice President, Private Sector Infrastructure and Industrialisation, Mr. Solomon Quaynor, gave the assurance during a visit to LAMATA.
He added that the bank was interested in partnering LAMATA to expand the capacity of the existing rail system.
“Quaynor was also in the company of the Non-Sovereign Operations and Private Sector Equity Specialist, Mr Mayowa Ayodele ahead of a visit of the technical team to assess the Purple line,” he said.
The Purple Line is a 60-kilometre railroad along the Redemption Camp in Ogun State, traversing Berger, Agege and Alimosho and terminate at Volkswagen to join the Blue Line.
“The visit follows a recent pitch for investment on 60-kilometre Lagos Rail Mass Transit (LRMT) Purple Line at the African Development Bank forum in Morocco, where the Lagos delegation was led by Governor Babajide Sanwo-Olu.
“This is to further discuss collaboration on the project and other lines outlined in the Lagos Strategic Transport Master Plan. The delegation toured the LRMT Blue Line and expressed satisfaction with the progress of the Blue Line rail system,” he said.
Socio-Economic Rights and Accountability Project (SERAP), has filed a lawsuit against the Nigerian government the 36 states over the Cybercrimes (Amendment) Act 2024.
SERAP is arguing that “the repressive use of the Cybercrimes (Amendment) Act 2024 by the government to criminalize legitimate expression violate the human rights of Nigerians, including activists, journalists, bloggers and social media users”.
In a statement on Sunday, Kolawole Oluwadare, deputy director, SERAP, explained that the suit was filed to stop the Tinubu administration and Nigeria’s 36 governors from using the Cybercrimes (Amendment) Act 2024 to criminalize legitimate expression and punish Nigerians, including social media users.
He said: “Rather than using the amended legislation to make cyberspace and its users safer, Nigerian authorities are routinely weaponizing it to curb Nigerians’ human rights and media freedom.
“The suit no: ECW/CCJ/APP/03/2025 was filed last week before the ECOWAS Court in Abuja.”
Recall that Economic Community of West African States (ECOWAS) Court had on March 25, 2022, declared Section 24 of Nigeria’s original Cybercrimes Act 2015 as “arbitrary, vague, and repressive.”
The court ordered Nigeria to repeal the provision, citing non-compliance with human rights obligations under the African Charter on Human and Peoples’ Rights and the International Covenant on Civil and Political Rights.
Although the Cybercrimes (Amendment) Act 2024 repealed Section 24, the Socio-Economic Rights and Accountability Project (SERAP) argues that the reworded provisions still infringe upon freedom of expression and information.
SERAP’s concerns center around the ambiguity of “causing a breakdown of law and order” in Section 24(1)(b), which they believe threatens peaceful and legitimate expression and leaves room for abuse.
SERAP highlighted several instances where the law was allegedly misused to target government critics, including activist Dele Farotimi, journalist Agba Jalingo, and social media user Chioma Okoli.
The organization emphasized that the amended legislation has a chilling effect on human rights and media freedom.
SERAP stressed that the amended Act contravenes international human rights law, which requires restrictions on freedom of expression to serve a legitimate purpose and be strictly proportionate.
The organization seeks a declaration that Section 24 of the Cybercrimes (Amendment) Act 2024 is unlawful and an order directing the government to repeal or amend the legislation in compliance with international standards.
However, a hearing date has not been set for the suit.
Guild of Corporate Online Publishers (GOCOP) has applauded Mr. Monday Okpebholo, Edo State governor, for the appointment of Mr. Collins Edomaruse as his Special Adviser, International Development Partners (IDP).
Ms Maureen Chigbo, president of GOCOP and publisher of RealNews Online, described Edomaruse’s appointment as a welcomed development.
Chigbo in a press statement by Ogbuefi Remmy Nweke, GOCOP Publicity Secretary, also congratulated Edomaruse for this appointment assuring of support from over 110 members of GOCOP in carrying out his duties.
Until his appointment, Edomaruse who is a founding member of GOCOP and the Secretary General of the body of reputed online publishers is also a member of the Nigerian Guild of Editors (NGE), among others.
Edomaruse doubles as the Publisher/Editor-in-Chief of METROWATCH, and has held several senior editorial management positions in THISDAY, including Group News Editor, Group Politics Editor, Deputy Editor, Daily, Saturday and Sunday titles respectively, as well as the Editor, Nation’s Capital/Abuja Bureau.
Also known as ‘General’ because of his mastery of the Defence Beat, his records in THISDAY have remained unbeaten, where he ranked the best among the editors.
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