Bad Loans, Biggest Threat To Microfinance In Nigeria

Bad Loans, Biggest Threat To Microfinance In Nigeria –LAPO MD

Managing Director and Chief Executive Officer of Lift Above Poverty Organisation (microfinance bank), Dr Godwin Ehigiamusoe, on Tuesday said that one of the biggest threats faced by the micro-credit sector was the issue of bad loans.

According to him, many Nigerians liked to take loans from microfinance banks but unwilling to pay back when the time for them to do so comes.

Ehigiamusoe, who said this had led to the collapse of many MFBs in the country, stated that the disturbing trend was affecting development and the growth of small scale businesses in Nigeria.

Speaking further, the LAPO boss, who said the financial institution disbursed over N137bn in loans in 2018, called on government to support the sector so that more Nigerians could be financially included and lifted out of poverty.

He said, “We live in a country where people would smile and be happy when they are collecting loans but when it is time for them to pay back such, they would run into hiding and be reluctant.

“When they are eventually held and asked to pay back, they start crying and making it look like the banks are bad.

“This is one biggest issues threatening the growth of the sector we operate in. Nigerians must change their attitude towards loan repayment.”

Ehigiamusoe however, stated that despite the glaring hurdles, LAPO would continue to offer services that would drive development that positively impacts the lives of ordinary people in Nigeria.

He added, “There are indeed many challenges affecting the operations of microfinance establishments like LAPO but notwithstanding, we will continue to come up with initiatives that help combat poverty in our country.

“Last year, we disbursed N137bn in loans. Our concern as a microfinance institution revolves around Nigeria’s poor and the impact we can make in tackling poverty.

“We need to review the existing measures put in place to address poverty in the country and lift people out of it.

“That is the only way we can drive genuine development in Nigeria.”

Economy Money News AddThis : Original Author : SaharaReporters, New York Disable advertisements :

from All Content
via

Comments

Nigerian Academy Of Science Inducts First Female President

The Nigerian Academy of Science has inducted a professor of Parasitology/Epidemiology, Ekanem Ikpi Braide, as its 19th President on Thursday. In a statement issued by Oladoyin Odubanjo, the Executive Secretary of the Academy, Braide is the Academy’s first female President in 44 years of existence. It read, “Braide was a member of the national committee that achieved the laudable feat of guinea worm eradication in Nigeria. “She has a rich professional experience as a researcher and an administrator. In July 2010, Professor Braide was honoured by the President of Nigeria with the award of Officer of the Order of the Federal Republic (OFR) for her contribution to disease control in Nigeria. “She was nominated by the Honourable Minister of Health to serve in the Ministerial Expert Advisory Committee on COVID-19 Health Sector Response (MEACoC-HSR). “Professor Braide served as Vice-Chancellor, Cross River University of Technology (CRUTECH) Calabar, Nigeria (2004 to 2009) and as P...

NLNG Signs Letter Of Intent On Delayed Gas Expansion Project

The Nigerian Natural Liquefied Gas LTD has signed a letter of intent for the engineering, procurement and construction of its long held up Train Seven project. In a statement released by the company on Wednesday, it said that the $10bn project will be executed by a consortium of Italian firm Saipem, Japan’s Chiyoda and South Korea’s Daewoo. The statement reads, “The project will form part of the investment of over $10bn including the upstream scope of the LNG value chain, thereby boosting the much needed Foreign Direct Investment profile of Nigeria.” Managing Director of NLNG, Tony Atta, said in 2018 that the Final Investment Decision would be made in the fourth quarter of that year. This did not however, materialize. According to the release, the project will have a four to five-year execution time after the signing of the FID. The project is expected to add an extra 8 million tons per annum of gas to the 22 mtpa currently exported by the company. Oil News AddThis :...

Former Maritime Agency Boss, Buba Galadima, Accuses AMCON Of Witch-hunt After Property Takeover

A former Director-General of the Nigeria Maritime Agency, Buba Galadima, has accused the Asset Management Corporation of Nigeria of witch-hunt after the agency took possession of his business and assets on Tuesday in Abuja. Galadima, an ardent critic of President Muhammadu Buhari, claimed that he did not borrow money or have unpaid debt with Unity Bank, which lodged a complaint against him and occasioned AMCON’s move on Tuesday. The properties taken over include House No. 15, Addis Ababa Crescent, Wuse Zone 4, Federal Capital Territory, Abuja and House No. 4, Bangui Street, Wuse 2, also in Abuja. Reacting to the situation, Galadima said, “This is an attempt to disgrace and break me down. This is injustice and an attempt to humiliate me. "But I am unbreakable and they can never silence me. They sacked me and over 50 people that sleep in the apartment. "We don’t know where to go. We will remain on the streets. We will remain on the streets until God provi...

EDUPEDIA247

Search This Blog