Lagos – The National Association of Microfinance Banks, NAMB, Lagos chapter, has expressed dissatisfaction over the refusal of the beneficiaries of the Lagos State Rural Transport Initiative (LARUTI) to repay their loans.

Mr Olufemi Babajide, the Chairman of the chapter, told the News Agency of Nigeria, NAN, Saturday in Lagos that the loan payment default was not encouraging as it would prevent others from benefiting from the scheme.

He noted that the beneficiaries’ attitude had made the state government to withdraw from the scheme.

NAN reports that Mr Lanre Balogun, the Lagos State Commissioner for Rural Development, had announced on Tuesday that the state government would review its involvement in the LARUTI scheme.

He said the decision of the state government was informed by the attitude of the beneficiaries of the loan, pointing out that only 30 per cent of them had repaid the loan while the remaining 70 per cent defaulted.

According to him, the state government will hand over the other phase of the initiative to interested private organisations.

The commissioner explained that the withdrawal of such support could cause an increase in the prices of food items, goods and services as well as transportation, especially for rural dwellers.

In his reaction, Babajide advised the state government to publish the names of the defaulters and prosecute them.

“It is true that collateral might not have been demanded from the beneficiaries who were given the tricycles, but that should not stop them from upholding their commitment,” he said.