The Executive Programme Director, Self Reliance Economic Advancement Programme (a financial services institution), Mr. Oladokun Olatunde, has said that the introduction of an anti-fraud software by the Central Bank of Nigeria is a development that will reduce fraud in Nigeria’s financial sector.

Olatunde, in an interview with our correspondent during SEAP’s financial summit in Ilorin on Wednesday, said the initiative would strengthen the financial sector.

According to him, there is the need for all financial institutions to further protect themselves against risks, especially fraud.

He said, “The CBN’s anti-fraud software is very good. We support it. Anti-fraud mechanism is one of the things we are trying to put in place. We are currently using software, which is marble. With this marble, some of our loan officers are going to be equipped with a kind of handsets and from the field, they can send information of payments to the office straight and at the same time give alerts to the customers.

“Anything that can reduce fraud, that will make third person’s money be intact and useful, is welcome.”

Olatunde said that SEAP invested about N44m in Corporate Social Responsibilities and N27m in health scheme in 2012.

The SEAP boss stated that two credit bureau introduced by the CBN would greatly assist financial institutions in their operations.

According to him, it will enable the banks to identify the credit ratings of loan applicants and reduce loss of money in the sector.

He, however, said that strategic measures should be established to avoid being compromised.

He said, “Another thing the CBN is working on is the credit bureau in which they want microfinance banks to subscribe. That will help MFBs at the end of the day.

“Credit Bureau will help us a lot because the database of all the members in financial institutions will be stored there. Credit bureau will then be able to give accurate information of credit worthiness of customers.”

Olatunde also called on the CBN to increase its financial support to microfinance banks.

He stated that some of the MFBs were being forced to access loans at very high interest rate.

According to him, this practice will not accelerate economic growth and the development of the financial sector.

He said that the government should provide enabling environment for businesses to thrive.

Olatunde stated that lack of infrastructure was impeding business transactions and the development of small and medium enterprises as well as big industries or companies.

He said, “The government has been paying lip service to funding the microfinance institutions and banks. This year, the Federal Government launched a package in which they wanted to support the MFBs.

“How do we go and be getting a commercial interest rate for lending? It is like we are mortgaging poverty in the lives of the borrowers. We can never get a loan that can support production because the terms and conditions of loan in Nigeria are not favourable for production. Infrastructure is not there. Many of the companies are running on diesel and how are they going to make profit not to talk of the repayment of the loans?”

He said that the government should be able to support the MFBs with subsidised interest loans.

He said, “Once they are able to do that, they will direct on its use and give terms. Then, there will be good rivalry and they will come up to discourage indebtedness.”

He added, “Now, you can see someone take up to four loans from different microfinance banks before the end of the year; the government must come up with a measure that whosever violates guidelines would be disciplined.”

Source: Punch (written by Success Nwogu)