THURSDAY, FEBRUARY 10,2011
Loan defaulters in Lagos owe MFBs over NIObn -NAMB Udeme Ekwere with agency report HE Chairman of the T Lagos chapter of the National Association of Microfinance Banks, Mr. Olufemi Babajide, on Wednesday said that microfinance banks in Lagos were being owed over NlObn. Babajide, who disclosed this to the New Agency of Nigeria in Lagos, said that NAMB had begun to solicit the support of the
debr recovery agents, law enforcement agents and negotiations, but all these are not yielding much. One of the major problems we have in this regard is that the laws of the land favour the borrowers as against the lenders. "We, therefore, want to ask the Central Bank of Nigeria to publish the names of the loan defaulters of MFBs just the way they did for the mega banks. This will at least bring a more public perspective to the whole issue. Also, if
Federal
for
they can set up a company
the establishment of special courts to try loan defaulters. He said that a lot of strategies had been employed to ensure that the loans owed the microfinance institutions were repaid, adding that the efforts had yielded no positive results. Speaking in a telephone with our conversation correspondent. he said, "We have been employing
like the Asset Management Corporation of Nigeria for MFBs, it will also help." He said that loan recovery would be a major challenge in the sub-sector in the future if the problem was not properly addressed. According to him, there is the need to stop the incidence of loan default so that it does not disrupt the smooth running of
Government
microfinance banks. He expressed regret that the extant laws were unfair to financial institutions, on issues particularly pertaining to loan recovery. Babajide said, "Microfinance banks are frustrated at the way loan cases are being adjourned and the high [egal fees.
been in court for more than four years and some loan defaulters have died in the process. "Even the law enforcement agents are not helping matters as they consider the cases as civil matters. We are appealing to the Federal Government
microfinance banks can grow Babajide, who is also the Chief Executive Officer of Unicredit Microfinance Bank, alleged that some people deliberate[y walked into banks to defraud the
intention; some aJso believe they are benefiting from dividends of democracy; whal kind of dividend is that when our operations are being affected? "There is the need for customers that are not willing to pay to be criminalised." According to him, in countries like Bang[adesh, India and Philippines where core microfinance banking is practised, a debtor is not buried until the family agrees to pay the debt he or she owed.
Aregbesola to revamp Awolowo's farm settlements Tunde Odesola, Osogbo SUN State Governor, Mr. Rauf Aregbeso[a, has embarked on moves to revamp the farm settlements, established in the 1950s, by a former Premier of the Western Region. the [ate Chief Obafemi Awolowo. Aregbeso[a, who made a tour of the 30 farm settlements in the state. on Wednesday. said the potential inherent in the agricultural sector held the key to rapid socia-economic growth of the country. An Assistant Director. Osun State Bureau of Communications and Strategy, Mr. Tunbosun Oyintiloye. who was on the entourage. said the state government was prepared to invest massivelY in agriculture. Speaking on behalf of the state government OyintHoye. who heads the Community Development Department of the bureau, said farmers would be supported through loans, provision of farm implements and fertilisers. He said. "One of the pedestals on which the
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Aregbesola administration rests is agriculture. Farmers will soon begin to get value for labour. We- are moving into an era when farmers will not be looked down upon.
• L-R: Director, Taiwan Trade Centre, Lagos, Mr. Ya-Fu Cheng; Group Managing Director, Omatek Computers Limited, Mrs. Florence Seriki; and Representative, Taiwan Trade Mission, Mr. Fu-Tien Lin, during a factory visit by the Taiwan representatives to Omatek factory, in Lagos ... on Tuesday.
Lagos to issue N887.36m retirement bonds Nike Popoola HE Lagos State Mr. T Governor, Babatunde Fashola, will, on February 17, 2011, present another set of retirement bond certificates. worth N887.36m. to public servants. who recently retired from the service of the state. A statement on Wednesday quoted the Director-General, Lagos State Pension Commission. Mr. Rotimi Hussain, as saying that about 217 retirees would be presented with the retirement bond certificates as a follow-up to the first retirement bond presentation ceremony, which took place in October, 2010. The DG said that Lagos State had been issuing retirement bonds in line with the provisions of the 2004 Pension Reform Act, which
introduced the contributory pension scheme in Nigeria. He was quoted as saying that accrued pension rights would be recognised with the issuance of retirement bonds to be redeemed into Retirement Savings Accounts of retirees. Retirement benefits receivable by the retiree as lump sum and programmed
withdrawal or annuity will be determined by the RSA balance among other indices. The director-general was also quoted as saying that the second bond presentation ceremony was an attestation to the commitment of the Fashola administration to making life comfortable for public servants "both
during and after their active service" Hussain explained that the retirement bond, which represented pension obligations "made up of actuarially-determ ined gratuity and pension benefits up to March 31, 2007, will be redeemed immediately as provision has been made by the state government to fund
the [iabi[ities." lt said, apart from the five per cent of employees monthly wage bill statutory funding obligations created under the Lagos Pension Law for accumulation In the Retirement Redemption Fund Account. the state also created a sinking fund "into which funds amass for funding of penSion deficits."
Rice: FG urged to reduce import duty Sulaiman Adenekan HE Federd[ Government T has been urged to reduce the duty paid on rice imports from about 32 per cent currently being paid to 10 per cent. The Manager, Import! Export, Viva Kwell Nigeria Limited, a rice importing company, Mr. Suresh Kumar, said this in an interview with our correspondent on
Wednesday in Lagos. He said, "The 32 per cent duty being paid on rice is too high because Nigerians eat rice a lot. It is u[timately the end users that bear the cost. It is better to reduce the duty a little bit, at least it should be between 10 per cent and 15 per cent for loading, levy and duty. "Encouraging people to bring in rice will reduce the , cost and smuggling through
the [and borders. The ban on the importation of rice through the land borders is a good development because the country is saving a lot of duty" He said the genuine importers were forced to sell be [ow the cost price of the activities of smugglers, who often sold less than the cost price. He, therefore, said government must reduce the duty in the interest of
Nigerians Speaking in the same vein, the Managing Director, Siofel Nigeria Limited, a rice merchant company. Mr. Biola Amuwa, urged the government to reduce the duty 10 between 10 per cent and 12 per cent to check the activities of smugglers, ," ,.. ' in the rice industry. He said the reduction of duty on rice would drastically reduce smuggling in the country.
BRIEFLY
NOA to partner NIPC on foreign investment HE Nationa[ Orientation T Agency is to collaborate with the Nigeria Investment Promotion Council in mobilising foreign investors to boost the country's economy. The Director-Genera[, NOA, Alhaji Idi Farouk, said this on Wednesday in Abuja when the Executive NIPC. A[haji Secretary. Mustapha Bello. paid a courtesy call on him. Farouk said the NOA
had since received the commission's assurance of effective collaboration toward actualising the programme of investor-mobilisation. He said the two bodies would enjoy"~cordial relations and mutual benefits from the partnership. He said, "NOA had leveraged on an investment tour to China organised by NIPC to develop a programme for [ocal government chairmen in
Nigeria. • "The chairmen also visited China to understudy the contributions of its' local government system. to national economic 0 development." Farouk said the NOA· had featured NIPC in its : "Democracy At Work". documentary series, adding • that a special programme 0 focused on NIPC would also 0 be developed as part Qf the : series.
World Bank to assist Ekiti in key sectors THE World Bank has offered to assist Ekiti State in developing key sectors and making the eight-point agenda of the Dr. Kayode Fayemi-Ied administration a reality. According to a statement on Wednesday, the Country Director of the World Bank in Nigeria, Mr. On no Ruh[, made this known in Ado Ekit.i when he led a team of officials on a courtesy visit
to Governor Fayemi in his office on Wednesday. Ruh[ disclosed that the World Bank officials were in Ekiti State to evaluate and revalidate the possibility of the Bank contributing to the development of the state with due consideration to the change in government. The World Bank chief expressed the Willingness of the g[obal financial institution to renew partnership with
the Ekiti State Government towards assisting the Fayemi-Ied administration fast-track the realisation of its eight-point agenda. Ruh[ was quoted as saying that the World Bank needed to understand the vision of the new administration as well as its priorities and challenges in order to identify priority
areas.