Nirsal Micro Finance Bank (NMFB), which will have an extensive network of branches and planned presence in all 774 Local Government Areas (LGAs) of Nigeria, as well as the Federal Capital Territory, will commence operations this month.
NMFB is a brainchild of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), the Bankers Committee and the Nigerian Postal Service (NIPOST).
The Micro Finance Bank will leverage on NIPOST’s widespread offices, while it would contribute its expertise and experience in financing low income entrepreneurs and de-risking of credits, by providing guarantees in line with its mandate. The Bankers Committee provided the set-up equity capital and owns 50 percent of the bank, while NIRSAL and NIPOST own 40 percent and 10 percent respectively.
NMFB’s main aim is to expand available options and empower Small and Medium Enterprises (SMEs) across the country with structured microcredit to help them establish and expand their businesses. The institution also plans to reach the most financially excluded Nigerians in rural communities.
A statement released by the institution, which was signed by the National Coordinating Consultant of NMFB, Dr. Steve Ogidan, said the bank represents a game-changer which will complement and support existing structures and players in the sector to better serve the millions of small entrepreneurs in the country.
Speaking on the initiative, the Chairman of NMFB, who doubles as NIRSAL’s Chief Executive, Mr. Aliyu Abdulhameed said the proposed bank would complement and support the existing structures and players in the sector to better serve the millions of small entrepreneurs and smallholder farmers in the country.
According to Abdulhameed, “the mission and strategy of NMFB are focused on making significant, sustainable and measurable impact on small businesses across Nigeria and, by extension, on the lives of millions of Nigerians dependent on them in the overall interest of the economy. The bank will work with all relevant partners, stakeholders and players to achieve this”.
NMFB is expected to be launched simultaneously across the six geopolitical zones in the country.