BY AMAKA ABAYOMI
In its drive towards empowering micro-finance banks (MfBs) to serve their target customers better, the Lagos State chapter of the National Association of Microfinance Banks (NAMB) has entered into a capacity building partnership with the Institute of Chartered Accountants of Nigeria (ICAN) to boost their service delivery.

Explaining the rationale for the partnership, the state chairman, NAMB, Mr. Olufemi Babajide, said it is aimed at taking MfBs in the state to the next level by instilling professionalism in the operators so as to boost its confidence in the banking public.

“The need for capacity building in the micro-finance sector can’t be over-emphasised, especially with the on-going confidence crisis we are experiencing.

“With a market size of over 50 million, representing about 65 per cent of the under-banked in the country, there is the need for well-trained personnel to facilitate the delivery of smooth, efficient and effective services to our customers.

“Partnering with ICAN is part of our repositioning strategy to grow the confidence of the sector because ICAN as a strong professional institution would bring in a wider, non-operator perspective to the sector.

“We have no iota of doubt that this collaboration will bring about change, instil professionalism among operators, build the needed critical mass and ensure sustain-ability and profitability.”

Pointing out why ICAN is working in partnership with MfBs to organise training sessions, a facilitator from ICAN, Mr. Oke Johnson Adebisi, said it is aimed at developing MfBs’ manpower so as to set the sector on the path of profitability.

“ICAN is a professional body that has members in all spheres of the financial sector, including MfBs. This partnership will help develop the sector’s manpower.

“We want to ensure that the sector as a whole is properly grounded on the rudiments of financial responsibility so as to ensure they don’t suffer some setbacks.”

Presenting an ‘Overview of the Microfinance Banking in Nigeria’, the Managing Director, Accion MfB, Mrs. Bunmi Lawson, said micro-finance presents a series of exciting possibilities for extending markets, reducing poverty and fostering social change.

“The key to poverty reduction in Nigeria is the provision of specially tailored financial services that would enable the poor engage in economic activities.”

Lawson listed lack of expertise to deliver the needed services; unsound financial intermediation practices; narrow range of products and services; and inadequate capitalisation to drive financial intermediation as some of the institutional constraints hindering microfinance operators from effectively delivering microfinance services to their clients.

Institutional constraints on the part of the regulators are inadequate capacity to supervise operators; non-implementation of policies relating to microfinance operations and lack of firmness to grow confidence of the target market.

During the course of the training, operational risk analysis and management, transactional guideline, and cash input/output were discussed by different resource persons.