The Chairman, Board of Directors, Davo Dani Microfinance Bank, Mr. Austine Enajemo, has said stringent measures are critical to the survival of any bank under the current economic misfortune in the country.
Enajemo said microfinance banks were set up in the country with a regulatory framework to provide financial services to those financially excluded with the idea to bring about financial inclusion.
Speaking at the opening of another branch by the lender in Lagos, he said, “Usually, I have often said that the journey to excellence is a never-ending one; the road is not always smooth. Therefore, it is expected that in a country with many active poor, we have those with bad and good characters.”
He said, “Therefore, talking about default, you cannot rule it out. The bank has carefully put in place a well-articulated credit appraisal system. This will ensure that all staff imbibe, without sentiment, waiver of anything. Based on that, and avoiding contributory negligence, we will try as much as possible to ensure our portfolio at risk is performing all the time.”
On the way out of recession, he noted that government must remain focused and committed to its policies meant to revamp the economy.
The chairman said the bank would access funds set aside by the Bank of Industry for microfinance banks in the country with the aim of making fund available for small businesses.
“The Bank of Industry has released funds to national microfinance banks. The next would be the state microfinance banks. I can tell you that we have put together our documentation,” he said.
According to him, the lender is fast-tracking the process of accessing funds set aside by the Central Bank of Nigeria.
He said, “N220bn has been set aside by the Central Bank of Nigeria with some conditions attached. We are dealing with the active poor – those people at the bottom of the pyramid. A lot of sensitisation and training are ongoing. As a result of that, the CBN has asked us that our customers should come, meeting some of those minimum requirements. And I think we have also done that. As I speak to you, every obstacle that is causing delay in getting releases to us has been removed.”