By Amaka Agwuegbo
The Vice Chairman, Africa Capital and Business Support Limited (ACBS), Mr. Benjamin Aduli, has said a total of N6 billion will be injected into Integrated Microfinance Bank to bring it back to operations.
Speaking to journalists, Aduli said that of the N6bn, N4bn will be committed in subordinated debt investment while the remaining N2bn will be for on-lending purposes.
â€œFor IMFB to start operations again, it needs money to boost its capital base and we are wiling to invest in the bank since they have over 650,000 customer base and branch network.
â€œWe will design products and services that can be sold to their customers and we will leverage on their operations in 23 states of the federation to grow the bank. The real issue is the human capacity within the operations to manage it.â€
Pointing out that ACBS is doing due diligence on 5 other MFBs which will be disclosed in due time, Aduli said ACBS will not take over IMFB since they are not doing equity investment in the bank.
Also speaking, Integrated Microfinance Bankâ€™s chairman, Mrs. Doyin Abiola, said they made hast slowly to find the right partner that understands microfinancing as IMFBâ€™s board has been working hard to restart the operations of the bank.
Explaining the modalities of the investment, Abiola said the N2bn for on-lending will be disbursed mostly to farmers since they constitute a larger percentage of the active poor.
â€œTo ensure that the money is properly disbursed and utilized, and since the farmers are already in cooperatives and societies, the money will not be given to individuals, thus making it easier to administer the loans and easier for them to pay back.â€
â€œWe have finished paper due diligence and the branches will be opened in installments for depositors to go verify their deposits. Those that want to stop banking with us will be paid off while those that still want to be with us will start operating their accounts.
â€œThe investors are watching their money and they will have two members on our board and ITC structure has been put in place in all our branches to ensure seamless communication.â€