By Tope Adepetu

The National Association of Microfinance Banks, Lagos chapter, has said that its members will start having access to the Microfinance Trust Fund set up by the state chapter from the second quarter of this year.

The acting Chairman, NAMB, Lagos State, Mr. Olufemi Babajide, said this in a meeting in Lagos with the Commissioner of Women Affairs and Poverty Alleviation, Mrs. Joke Orelope Adefulire.

According to Babajide, the setting up of a trust fund is to prevent member banks from experiencing liquidity shocks.

Babajide said, “The Trust Fund is to help microfinance in accessing funds so as to support access to credit to the general public. Members will have the opportunity of accessing the Fund from second quarter.

“There are currently 182 MFBs in Lagos State and they are located in both the urban and rural areas of the state. They are in a position to reach out to over 10 million people in the state. We have put in place a self regulatory committee to monitor very closely the activities of the members to ensure that corrections are made before things get out of hand in their operations.”

The association urged the Lagos State Government to budget N10bn to be accessed by members for poverty alleviation and youth empowerment.

The chairman said, “We are determined to partner the Lagos State Government on the eradication of poverty and on youth empowerment. The funds will be accessed for project financing and re-financing. The Fund will be properly monitored through internal self regulation activities, and the eligibility criteria put in place will ensure that those recommended will not default.

“We will ensure efficient disbursement and allocation of the funds to the grass roots and active poor. The association’s Trust Fund will serve as a cushion and fallback position that will ensure that there is no default,” Babajide added.

The commissioner, in her remarks, said, “I congratulate and appreciate the life changing policies and programmes of the MFBs, but implementation of policies has always been the problem in Nigeria.”

She, however, urged the association to take implementation of policies seriously.

Source: Punch