At LAPO conference, NDIC tasks MFBs on lower interest rates

The Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has urged microfinance banks (MFBs) in the country to lower interest rates for the well-being of the people.

Speaking yesterday at the second LAPO Institute Conference on Microfinance and Enterprise Development in Benin City, Ibrahim, who was represented by Etopidiok Joshua James of the corporation’s Special Insured Institution, said LAPO Microfinance’s excellent performance had attracted about N10.45 billion of foreign funds.

He added that the bank’s effective enterprise risk management had also been positive, posting a non-performing loan ratio of only 2.75 per cent compared to the Central Bank of Nigeria’s (CBN) five per cent threshold.Earlier in his welcome address, chairman, Governing Council, LAPO Institute, Dr. Godwin Ehigiamusoe, said the sub-sector was being threatened by unfavourable government policy.

“Microfinance practice in Africa has been retarded by an acute lack of documentation and intellectual investigation. The African microfinance community is looking up to the institute to lead efforts in addressing the knowledge gap in financial inclusion on the continent,” he noted.

Dr. Godwin Nwabunkam, who presented the lead paper entitled, “Microfinance, Job Creation and Poverty Reduction,” emphasised the role of microfinance banks for economic growth and development.

“Microfinance is a tool of empowerment when based on global best practices and can have a strong and positive influence on poverty reduction and job creation,” he stated.The Vice chancellor, Samuel Adegboyega University and President, Nigerian Economic Society, Prof. Ben Aigbokhan, applauded LAPO for improving the lives of the poorest of the poor through its people-oriented programmes.