NPF MfB seeks support for microfinance banks with low tax regime

NPF MfB seeks support for microfinance banks with low tax regime

NPF Microfinance Bank Plc, has urged government to support microfinance banks with a lower tax regime to enhance its business, thereby releasing more money into the economy.

Besides, the bank said Development Bank fund should be given to microfinance banks (MFBs) at single digit rate, which they will in turn make available to their customers at a lower interest rate to boost economic activities of the micro, small and medium enterprises (MSMEs).

The Managing Director/Chief Executive Officer, NPF MFB, Akin Lawal, made the call at a press conference marking the bank’s Silver Anniversary in Lagos.He recalled that the bank had grown from authorised share capital of N500,000 made up of 500,000 ordinary shares of N1.00 each at inception, to the current N3billion made up of six billion ordinary shares of 50kobo each.

He also disclosed that the bank has consistently paid dividend to shareholders for 22 years, with total credit portfolio in excess of N10billion, and the Portfolio at Risk at about 2.57 per cent, lower than five per cent industry standard. He stated: “Total credit port folio of the bank is far in excess of N10billion, and the PAR which is the measurement of the performance of the portfolio is about 2.57 per cent. The internal benchmark of the bank is three per cent, while the industry standard is five per cent; the bank uses a lower standard as against the industry standard. Our risk asset portfolios are in high performance, 97 per cent of the portfolio is doing well.”

The bank had equally disbursed over N1billion MSME Development Fund, in addition to other developmental funds to its customers, which are fully paid back.“For MSMEDF, initially we are a beneficiary of about N500million of that scheme, and the entire amount was disbursed to the general public, and fully paid. Subsequently, the Central Bank of Nigeria, CBN, extended it for us by giving us N1billion that has been deployed to the general public. Same goes for other developmental partners like Bank of Industry, BoI and Development Bank of Nigeria, DBN, because of the impressive performance of the bank.

“All the developmental banks are partners of NPF MfB; this has to do with the bank’s reputation, because we ensure that funds deployed to customers come back, and we meet obligations to development banks. Lawal said the bank boasts of over 380,000 customers in which about 70 per cent are from the bank’s primary constituency, including […]

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