Bankers’ C’ttee: NIRSAL lifts 5000 small businesses with N18bn

.Agric, manufacturing, fashion major beneficiaries

.Bankers’c’ttee sets to finance four road projects

NIRSAL Microfinance Bank (NMFB) has lifted not less than 5,000 Nigerians, who are majorly small business owners in the agricultural, manufacturing and fashion industry with a whopping N18 billion loan in 2019.

It is, however, worthy of note that NMFB is owned by the Bankers Committee with 50 per cent shareholding, while playing the role of first-line financiers, as the banks, out of their magnanimity decided that five per cent of their profits would be set aside to support Agric. businesses, Small and Medium Enterprises (SMEs).

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This is even as the Bankers Committee, in collaboration with the Central Bank of Nigeria (CBN), has concluded to work with the Federal Government to finance four roads in the country through the Public-Private Partnership (PPP).

Speaking with the newsmen at the end of 348th meeting of the Bankers Committee on Tuesday in Lagos, acting Managing Director, NMFB, Abubakar Abdullahi Kure, said that a review of the performance of NIRSAL MFB showed it had been able to impact on the lower segment of the society.

He explained that the bankers’ committee has also been able to support the bank by increasing its paid-up capital to N7.5 billion, thereby adding N2.5 billion. This, he said, will enable the bank in its expansion plans across the federation.

The NMFB boss, also, noted that bank’s branches are now in 53 locations across the country, while assuring that the plans to work with NIPOST offices across the country are still underway, as their offices will be upscaled to suit banking operations, which is believed to significantly help in supporting more small businesses in the country.

He explained that the NMFB loans will be targeted to the lower sector of the economy’s pyramid in agricultural and manufacturing sector so as to enable poverty alleviation, generate employment to ensure overall growth in the economy.

Also, the Director, Banking Supervision, CBN, Mr. Bello Hassan, said that government requested the committee to consider participating in bridging the infrastructure gap in the country.

Hassan noted that the government could not fund typically infrastructure alone.

“The government has invited the committee of bankers to also consider the possibility of PPP in bridging the infrastructural gap.

”It is to that extent that the committee considered coming in to see how we can finance about four roads,” he said.

Similarly, the Managing Director, FSDH Merchant Bank, Mrs. Hamda Ambah, said government alone could not provide the infrastructure needed in the country.

She said: “We have created a small committee among the CEOs to work with the CBN to identify those roads where we would like to participate and come up with a framework which we would share with the government, and once we have an agreement, we would be able to forge ahead.’’

The Managing Director, Jaiz Bank, Hassan Usman, said that the bankers committee was looking into many ways to support the government and the society.

He said this could be in the area of increasing the level of credit to the private sector and real sector of the economy, working with the NIRSAL and other banks to increase financial inclusion or specifically intervening in infrastructure.

 “These are steps being taken to ensure that government is supported in the drive to grow this economy, reduce unemployment and also improve the security of the nation,” Usman said.

On Loan-To-Deposit Ratio (LDR), the Managing Director, GTBank, Mr. Segun Agbaje said lending was what was needed to stimulate any economy.

“And so, when the LDR was first fixed to 60 per cent, we thought it was monumental, but as you can see, people have approached it; now it is 65 per cent. I think this is very critical, not only in the banking industry but to Nigerians as a whole that this continues,” he said.

Other issues addressed at the committee meeting and revisited with the press included the success of the Loan to Deposit Ratio of commercial banks reviewed to 65 per cent last year.

Segun Agbaje, MD Guaranty Trust Bank, said the upward review of the LDR is a good development as credit is needed to stimulate any economy.

“It is one of the most successful things done in 2019, especially when we look at how much credit disbursed in the last 6 months. He added that consumer credit now averages 10 per cent of loan books of Nigerian banks. For Guaranty Trust Bank, this translates to about N150bn for the 2019 financial year.

Bello Hassan, director banking supervision, added that the CBN is proactive in managing the risk associated with increased lending. “The CBN has brought out the global standing instruction, aimed at encouraging good credit repayment in the system, Hassan said. Adding that with this instruction, a customer who defaults in payment has empowered the bank to look through the system and use deposits in any other bank in offsetting such outstanding obligations.

Hassan said the government extended a request to the committee of banks, encouraging them to participate in bridging the infrastructure gap in the country.

Hamdah Ambah, MD, FSDH Merchant Bank explained that a committee of the bank, CEOs have been formed to address this request.

“We understand that government alone can’t provide all the infrastructure in the country, we in the private sector have to work hand in hand to ensure the infrastructure moves ahead, so we agreed to create a small committee among the bank CEOs to work with the Central Bank and identify the roads we will like to participate. We will come up with a framework and share with the government how we intend to do it,” Ambah said.