NAN-HE-12
Inclusion
By Lucy Nwachukwu
Abuja , Oct 31, 2016 (NAN)The Association of Non-Bank Micro Finance Institutions of Nigeria (ANMFIN) has urged microfinance operators to adopt innovative products and modules of operations to attain financial inclusion in the sub-sector.
The Executive Secretary of ANMFIN, Dr Godless Safugha, said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.
He said although operators were deploying some innovative approaches into their businesses, there was low introduction of new products and lack of innovation on the part of microfinance operators across the country.
He said, “ANMFIN has concluded its 2016 annual RUFIN sponsored on-site visit of affiliated members, with over 25 MFIs receiving technical support in different segments of microfinance operations for improved performances.
“The report revealed that microfinance institutions were rapidly deploying technology in managing financial transactions, increasing formation of groups as a vehicle to empowering women economically, through savings and credit groups.
“Also, it was discovered that as a result of their affiliation with ANMFIN, most of the microfinance institutions are reorganising and changing their governance structure.
“They are moving from predominantly sole-proprietorship model where one man serves as Board Chairman/Chief Executive Officer to adopting a structure that encourages checks and balance by recognising divisions in responsibilities.
“However, the downside remains. Some microfinance institutions visited are still operating manually, while some credit officers are still grappling to understand the rudiments of the group formation methodology.
Safugha explained that the project was a routine exercise to strengthen members’ businesses with the chances of reducing financial exclusion in Nigeria.
He recalled that between 2014 and 2016, ANMFIN completed its microfinance business software developed in partnership with Access Solutions Ltd and Mosoni Systems.
He said,“ ANMFIN introduced a Rural Business Plan as well as the Code of Conduct for operators in addition to other innovations for the sub-sector.
“It is therefore necessary that we closely monitor the progress and to be able to provide emerging assistance to our members.
“The association envisaged that in spite of the huge investment made in training microfinance institutions in the country, some Institutions may still need direct on-site technical support.
“The support is in the restructuring, repositioning of their processes and procedures for the objective implementation of the reform programmes for the sub-sectors’ efficiency, introduction of new products and approaches.
NAN reports that ANMFIN is a Not-for-Profit Network of independent microfinance institutions in Nigeria.
It resulted from an Initiative in 2010 led by The Central Bank of Nigeria, in collaboration with the International Fund for Agricultural Development (IFAD) and the Rural Finance Building Institutions of Nigeria (RUFIN).
Its aim is to create and strengthen a country level microfinance network to promote rural finance, financial inclusion and poverty reduction in Nigeria.
The Association is responsible for the promotion of self-regulation, capacity building, uniform standards, transparency and good corporate practice as well as financial linkages in the Non-Bank Microfinance Institutions sub-sector. (NAN)
LCN/EAL/IA
Edited by Ekemini Ladejobi/Idris Abdulrahman