Walter Ukaegbu, Abuja
The Managing Director/CEO Baobab Microfinance Limited Dr Kazeem Olanrewaju, has said that in 10 years of its inception the bank has disbursed N40 billion to Small and Medium Enterprises (SMEs) in the country.
Olarenwaju made this disclosure over the weekend in Abuja during a customer forum organised by the bank to interact with its customers in the Federal Capital Territory with a view to knowing their challenges.
On why the customers should keep faith with the institution, the managing director explained that the bank parades a good work force, well trained staff with very high efficiency rate.
He disclosed that it takes only four days to process customers loan through its portfolio manager who manages customer unlike in other microfinance banks adding that product and services are tailor made.
Olarenwaju stated that the bank has built a lot of confidence in the industry, while disabusing the minds of people who believe that customers do not pay.
He however informed that customer selection is very rigorous adding that “ when you are selected you are good to go”.
On challenges facing the outfit, the managing director named infrastructure as one of the key problems as it pays for power, water among other utilities which he said make the cost of doing business high.
He listed another impediment to be cost of funds as some customers still keep their funds in commercial banks instead of the micro finance banks.
This he stressed makes it impossible for them to support the business the way they should. He however called on the government to provide money for the micro finance banks to enable the industry grow. Olarenwaju explained that at the moment, the capital base of the microfinance is N2 billion and would soon be raised to N5 billion.