Breaking News

183 microfinance banks apply for LASMI Fund

By Amaka Abayomi
183 microfinance banks have applied for access to the Lagos State Microfinance Institution (LASMI) Fund through the  Lagos State chapter of the National Associa-tion of Microfinance Banks (NAMB).

The application followed a recent meet-ing  between  LASMI and the Association where MFBs clamoured for increased partnership for poverty alleviaton in the state.

The Ag Chairman of  Lagos NAMB, Mr. Olufemi Babjide, said the application from members is the outcome of their meeting with LASMI to allow more MFBs partner with the institution in poverty alleviation in the state.

“We met with LASMI to set aside funds that would be accessed by our members for project financing and refinancing and for poverty alleviation in Lagos State because as the commercial and economic capital of Nigeria, Lagos State has the largest concentration of MFBs and MFBs can’t do it alone,” Babajide told Vanguard.

“To ensure greater and more effective spread, efficient disbursement and allocation of funds to the grass-root and active poor, we asked members to apply which would be forwarded in batches to LASMI.
“We have recieved the first batch of applications from 183 MFBs which would be forwarded to LASMI for considera-tion”, he said.

Though the Chairman of LASMI, Bashorun Alabi-Macfoy, said LASMI has some banks that it works with, but he listed some criteria that should be met by any MFB that wants to partner with it.

The criteria include the MFBs must be licensed by the CBN, show two years audited account, evidence of payment of NDIC premium, must be an up to date financial member of the association, must show one year minutes books of BOD meetings and last minutes of AGM/EGM meetings.

Others are evidence of last CBN returns, projects that would be financed, copy of Certificate of Incorpora-tion, copies of board resolutions authorizing the loan, board of directors’ profile, management profile, 5-year financial projection and organogram.

Yet others are memorandum and article of association, evidence of tax payment to the state government, annual returns to CAC, must be signed on to a credit bureaux, amount to apply for (minimum N10m, maximum N20m), acceptable liquidity position and must invest in T-bills.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.