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IMFB, microfinance banks partners on poverty alleviation

Integrated Microfinance Bank   Ibadan branch is  organizing a Carnival Road Show on poverty alleviation in Oyo State. The event is scheduled for today Thursday 2nd of July, 2009. The float/carnival will go around ibadan metropolis starting from the Governor’s office and end up in his office.

The Governor of Oyo State, Chief Adebayo Alao Akala would be on hand to receive the procession. The Road show is to sensitise the people about the activities of the bank and the impact of the micro credit scheme in the state. Integrated Microfinance Bank has been in partnership with Oyo State Pacessetter Microfinance since September, 2008.

It could be recalled that IMFB and four other selected microfinance banks in Lagos state recently were empowered by Mr Raji Fashola, the executive governor of Lagos sate, as he presented cheques in different categories to 5, 000 beneficiaries.

Speaking at the event to mark the initiative, Mr. Simon Akinteye the Managing director and chief executive officer of IMFB, said that the creation of microfinance banks enables the unbanked to be banked and the underbanked to feel the effect of banking and also to provide financial services to micro entrepreneur in order to ensure the integration of the informal sector into financial system.

Akinteye explained that the creation of LASMI, which has been doing a very wonderful job and the subsequent appointment of the agency banks is a good intention by the Lagos State to ensure an effective and efficient distribution of the funds set aside for poverty alleviation. “Since the handling of the project is by the professionals (Agency Bank), the intention of the government will be effectively felt and the funds will be used for the purpose for which is meant.
Other micro finance institution that also benefited from that initiative include: Mic Microfinance Bank Limited, LASU Microfinance Bank limited, Ojokolo Microfinance Bank Limited and Capbridge Microfinance Bank Limited.

In his remarks, Babatunde Fashola, the executive governor of Lagos State, said that Lagos State has always been the commercial and socioeconomic nerve centre of Nigeria and the ECOWAS sub sector, providing about 68 pre cent of industrialisation, 38 per cent of energy consumption, 26 per cent vehicle population and 40 per cent of value added tax (VAT) “consequently, we have discovered that the informal economic in Lagos State accounted for about N15 billion that was not captured in the Tax Net of the state, therefore, the state could not provide adequate infrastructure for the development of the micro sector.” He said.

Fashola explained that the idea of micro finance initiative to energize the informal sector, by the administration was informed by the need to move away from the traditional in institution of social security that created indolence and dependence, and lowered the self esteem of the beneficiaries.


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