Activities of Microfinance Banks Slowing Down Rural-Urban Migration – CBN

By Our Reporter

The activities of micro-finance banks have been identified as one of the factors slowing down the rate of rural-urban migration, enhancing job creation and investment opportunities, ensuring growth in savings and financial literacy among rural dwellers in Plateau state.

The Acting Branch Manager, Jos branch of the Central Bank of Nigeria, CBN, Mrs. Tinat made the observation in her keynote address at the 9th and 10th Annual General Meeting, AGM of the First Lowland Microfinance bank, Mabudi, Langtang South local government area.

She also noted that despite several challenges encountered in the sector, a significant achievement has been recorded in the access to finance in the rural areas and urged the bank’s shareholders to “consider strongly a remarkable increase in your authorized and paid up share capitals, which would ensure that you meet the recapitalization requirements of the CBN in order to retain your operating license.”

Earlier, the bank’s MD/CEO, Mr. Amos Balami informed shareholders of the activities of the bank saying that despite challenges, the bank has made substantial progress and needs to be encouraged, putting emphasis on the achievement of Nbol-Iram, a flagship product of the bank.

Balami stressed that the product has “continued to perform creditably with loan repayments in excess of 98% over four years and this has brought economic empowerment to the rural farmers who otherwise would not have been able to access any form of financing for increased agricultural activities.”

He further disclosed the bank’s future in focus is “to raise shareholders fund to the minimum of N200m to take advantage of the opportunities derivable from economies of scale as well as the new window of branchless/agency banking which has the potential to increase our reach at minimal cost.”

The Chairman, Board of Directors of the bank, Air Marshal Jonah Wuyep, rtd, also called on shareholders to plough back their profit as shares to enable the Board do more for the bank.