‘Our Women MFB will give female entrepreneurs easier access to loans’
Lola Okanlawon, president, NECA Network of Entrepreneurial Women (NNEW), speaks on reasons the network established the first ever women-focused microfinance bank in Nigeria which will be launched April 30, this year, in this interview with OLUYINKA ALAWODE
MFB
NNEW Women’s Microfinance Bank Limited is owned by institutional investors such as Nigeria Employers Consultative Association (NECA), the NECA Network of Entrepreneurial Women (NNEW), the NNEW Cooperative Multipurpose Society and the individual members of NNEW.
The NNEW Women’s Microfinance Bank will afford a lot of business women access to micro-loans without the pressure of daunting paper work and collateral. The bank is predominantly for women entrepreneurs and youths with micro-businesses to access loans.
To ensure liquidity, the bank has been selling its shares. In addition, the MFB will take in customers’ deposits and savings and at the same time encourage savings among its credit beneficiaries. The receipt of grants by different organisations that want to help promote our cause is not ruled out.
Inspiration
There is so much poverty in the land and women bear the worst consequences of it. Yet many of these women are industrious and hardworking but are not empowered economically to live above poverty.
One of such barriers is the lack of access to required credit to pursue their entrepreneurship aspirations. The demands from the commercial banks are stringent and unfavourable, especially to micro-businesses and the barely literate business woman. A major sore thumb has been the issue of collateral which many of these women do not have.
NNEW, as a Business Membership Organisation in the past 10 years, has empowered women entrepreneurs in capacity building, technical support and networking. About five years ago, we established the NNEW Cooperative Multipurpose Society to enable members access affordable loans for their businesses. The success of our cooperative society in providing easily accessible loans to women entrepreneurs who are our members gave us the courage to extend this initiative to other micro-entrepreneurs through the establishment of microfinance bank mainly for women.
Prospects
Our customers are the reason why we exist. We will always provide great service to their satisfaction and the growth of their businesses. The board of the MFB is made up of experienced and committed people who will ensure that the bank is run professionally and shareholders assured of a good return on their investment.
Our vision is to build a unique and world class financial institution to be listed on the Nigerian Stock Exchange (NSE). At the same time, we aspire to be the most relevant MFB in the West Coast of Africa. In addition, we plan on having our own property as our head office building in the next five years.
Launch
We have commenced full operations upon the receipt of approval for state license from the Central Bank of Nigeria (CBN) some weeks ago. The official launch has been scheduled for Thursday, 30th April, 2015. In the very first month of operations, we disbursed micro-loans to over 100 women with about 120 more women on the waiting list.
Subscription
Our shares subscription is still on-going. We are careful to seek out credible investors to partner with us. Since money has no gender, whether women or men, NNEW members or otherwise, as long as they are people of integrity, they are welcome to join us. We already have non-members of NNEW on the board of the MFB.
Location
Our first branch is at 70 Ogunnusi Road, Akiode Bus Stop, Ojodu. We have a state-licensed MFB, so we can have as many branches in Lagos as possible but we are strictly considering an organic growth model for our branch network. NNEW itself already has offices in Abuja and Port Harcourt and our plan is to qualify for a National-licensed MFB by the year 2019 or earlier which will enable our spread along NNEW expansion routes. But for easier coordination, we shall expand to neighbouring states of Ogun, Oyo and Osun, among others.
Banking has gone past the banking hall. We are already leveraging on our relationship with some commercial banks with large branch networks and wide technology to extend the products and services of the MFB to them.
NECA support
All the achievement of NNEW in the last 10 years, since inception, would not have been this rapid if not for the vision and support of the Nigeria Employers Consultative Association (NECA). NECA has spearheaded the identification and implementation of this distinct strategy toward the empowerment of women enterprises in the Nigerian economy. When you empower a woman, you empower a nation. Through NECA, NNEW has received (and continues to receive) the recognition and support of international institutions such as the International Labour Organisation (ILO), the Norwegian Confederation of Businesses (NHO), United Nations (UN) Women. We are grateful to all of them.