By Providence Emmanuel

DAVODANI Microfinance Bank (MfB) Limited has said that embracing Microfinance Banking Services would help people, especially those at the bottom of the pyramid get out of the current economic situation in the country.

Chairman, Board of Directors, DavoDani MfB Ltd, Mr. Austin Enajemo-Isire, said that the realization of a gap in the provision of financial services to the micro, small and medium entrepreneurs was what informed the development of microfinance bank regulatory framework developed in 2005 to bring about financial to those who have been neglected by the regular financial services.

Isire said these at the Official Opening of the bank’s 8th branch in Oyingbo, pointing out that the branch opening shows it is aligning with the policy of government to ensure it deliver on promise. He explained that the bank is set out to provide micro and other responsive financial services on a sustainable basis to assist the numerous SMEs and the poor achieve financial freedom.

“When you talk about financial freedom, it is the reason why government is advising people to embrace microfinance banking services so as to have access to financial services and get out of the quagmire. This is what informed the new branch, we want to distinguish ourselves in line with government policy and ensure that we deliver on promises just as we have remained poised to give quality service at all time,”he said.

For the Bank of Industry (BoI) MfB fund, he disclosed that in the shortest time, it is on the next stage to be given attention, saying, “I can tell you that we are almost there to receive ours. BoI released funds to national microfinance banks, the next would be the state microfinance banks. I can tell you that we have put together our documentation.

“The CBN set aside N220 billion micro small and medium enterprises development fund with some conditions attached, but we are dealing with active poor – those people at the bottom of the pyramid, a lot of sensitisation and training are ongoing and as a result, every obstacle that is causing delay in getting releases to us have been crushed.”

Speaking on the rate of default on loan repayment, he said it cannot be ruled out but the bank has carefully put in place a well articulated credit appraisal system that ensure all staff avoid contributory negligence and also ensure its portfolio at risk are performing all the time.