1 billion Naira of credit support for Nigerian microfinance banks
Nigerian microfinance banks will receive credit lines from African Capital Business Support (ACBS) in order to ensure their survival.The Nigerian newspaper the Daily Champion reports Vice-Chairman of ACBS Nenhaimn Aduli has pledged to loan as much as 1 billion naira (€5.3 million) to microfinance banks in the country, at an interest rate of 9.5 per cent. He said the body is working in conjunction with Dubai-based Smart Limited and Suisse Bank to maintain the flow of finance and help the microfinance providers grow.
However, banks that apply for the loan must already have least 12 per cent of the money they are seeking in their possession. In addition, they need to have drawn up a well-developed business plan, while the lending company must also have a non-executive board member at the microfinance institution.
Mr Aduli said the first year of the loan is to be interest-free, adding the beneficiary will have the choice of modes of payment, including bullet payment, where the interest is paid in a one-off sum.
One Nigerian bank, eTranzact, recently partnered with the International Finance Corporation to launch its Rural Telephony Project MobileMoney initiative for the unbanked portion of the population.