Bida Poly establishes Micro-Finance Bank as CBN revokes Licences of 9 others

483

The Federal Polytechnic, Bida, Niger State has established a Micro Finance Bank with capital base of about N20 million just as nine of the 34 micro-finance banks in Niger have lost their operational banking licences.

North Central Secretary of the association, Mr Sado Daniel, stated this while inaugurating the micro-finance bank established by the Federal Polytechnic, Bida.

“These micro-finance banks lost their licences because they fell short during the regulation exercise carried out by the Central Bank of Nigeria (CBN),”  he said.

He said that non-adherence to corporate governance contributed to the collapse of the banks, urging the management and staff members of the new bank to adhere strictly to the rules establishing it.

“Banks do not die, people kill them; please do not kill the Federal Polytechnic Bida Micro-Finance Bank; ensure that you adhere strictly to the rules of the game,” he said.

In the same vein, a representative of the CBN in Minna, Hajia Hajara Mohammed, said that insider abuse was another huge factor that contributed to the failure of micro-finance banks across the country.

She urged business people to stop diverting loans collected from banks to other purposes such as marriage among other things different from what the loan was meant for.

 “Until we stop using business money and loans to get married and buy clothes, businesses in the country will not progress,” she stressed.’

She called on the people to work toward ensuring that all loans collected were paid back to enable them to benefit more. “If you don’t return your loans there is no way you will benefit from loans being made available by the Federal Government through the CBN,’’ she added.

Earlier, the Rector of the polytechnic, Dr Abubakar Dzukogi, said that the micro-finance bank was established with a capital base of N20 million adding that it would be increased to N50 million by the year 2019.

Dzukogi, who is also Chairman, Board of Directors of the micro-finance bank, said the bank would make banking easy for students and staff members of the polytechnic.

He also said that the measure would ease the cashless policy being planned by the CBN.

LEAVE A REPLY

Please enter your comment!
Please enter your name here