Mr Olufemi Babajide, the immediate past chairman of National Association of Microfinance Banks (NAMB) in Lagos, said the association’s trust fund would hit N500 million before the end of 2012.

Babajide said on Wednesday in Lagos that the fund was being established to assist microfinance banks with funds for on-lending to the active poor.

The trust fund was officially launched in May and has pooled funds up to N150 million.

“The new trust fund is not and will never be a bailout fund for microfinance banks that has wound up.

“The motivation for establishing the fund is to assist microfinance banks with liquidity for onward transmission to the active poor since we are not receiving any support from the Federal Government.

“So, our effort is that if the Federal Government does not help us, we will try and help ourselves, but the truth is that we cannot do it alone,” he said.

The former chairman said that the fund was expected to pool more resources from Unity Bank, members of the association, international agencies and donors.

Babajide said that each microfinance bank would not access more than N20 million at an interest rate of between five and 10 per cent.

“The credit manual has also been sent to the Central Bank of Nigeria where all criteria for accessing the fund were spelt out,” he said.

Babajide also said that the fund was independent of the association and had 12 parties that would manage it.

“The parties, which are recognised by the Nigerian Stock Exchange, have been involved in fund management for a long time,” Babajide said.

SOURCE: Business Day Online