Microfinance Bank Partners Foundation on N220Bn MSME Fund

Ikam Imanyi, managing director, CAFON Micro Finance Bank, has said that the bank is to assist an initial 3,000 albinos across the country to access their share of the N220billion micro, small and medium enterprises (MSMEs) development fund set up by the Jonathan administration to support entrepreneurial ventures in the country.

According to guidelines released by the Central Bank of Nigeria (CBN) on disbursement of the funds, two per cent of the entire N220 billion have been dedicated solely to service loan requirements of persons with disabilities and other vulnerable groups such as albinos.

Speaking at the signing of a memorandum of understanding (MoU) between the bank and the Albino Foundation, he said the bank decided to partner with albinos to access the MSME funds because of the genuine need that the group faces, adding that the foundation has successfully galvanized itself into a force to reckon with despite being physical challenged.

According to him, the bank recently began a wide ranging training and vocational sessions for albinos, adding that the move is deliberate in order to better position the albinos to meet the requirements to access the two per cent share of the total MSME funds which totals about N4 billion.

He explained that the bank hopes to increase number of vulnerable persons who can access the loan, but however said it was concern with providing high level loan management skills to would be beneficiaries.

Babatunde Ogunlaja, deputy director, Development Finance of the Central Bank of Nigeria (CBN), said the regulatory bank was keen on ensuring strict compliance with the guidelines for the loans, saying that financial institutions, who delay in disbursement of the funds would be penalised by the apex   bank. 

He noted that the CBN has spelt out various classes of beneficiaries, adding that only borrowers who fulfill credit worthiness would be considered. 

According to him, the financial institutions cleared to participate in the MSME scheme have been given a leverage to give the funds at between 3-9 per cent to borrowers, adding that the variation is due to transactional costs, which differ from case to case.

Jake Epelle, founder of the Albino Foundation, who expressed optimism about the success of the scheme, said that the foundation had begun coordination of all viable business ideas own by its members throughout its units nationwide, with a view to collating them and properly harnessing them to attract necessary financial backing under the MSME scheme.

He commended the present government for the initiative, saying it was a step in the right direction.