The Ogun State Government has appointed UNAAB Microfinance Bank Limited (UMFB), as a revenue collection bank for the collection of taxes, levies, rates and dues on behalf of the state government within the Abeokuta metropolis, as the bank has also concluded arrangement with REMITA, a financial collection and payment platform, for the collection and disbursement of online payment of salaries of University staff, directly from the Accountant-General of the Federation’s Office in Abuja.

The Managing Director of the bank, Mr. Abimbola Adewale, said the partnership with REMITA would make the bank to be at par with other commercial banks in paying salaries of government workers. He added that based on the bank’s 2014 impressive performance, the Central Bank of Nigeria (CBN), had recognized and approved 9 percent single digit interest rate Small and Medium Enterprises (SME) loan of N10m for customers of the bank, adding that the disbursement of the loan had already commenced. Mr. Adewale stated that the focus of the bank was on the customer, whose lives should be improved upon through available credit facilities followed by corporate social responsibility initiatives.

“Just last week, we satisfied our customers by bringing down the interest rate on one of our facilities. We got the approval of CBN for an SME loan of N10m at single digit interest rate of 9 percent. It means that if a customer of UMFB has taken loans thrice at 24 percent, in the next loan he/she is to take, we will scheme him/her into the CBN loan where he will pay 9 percent interest, while the customer that hitherto pays N14,000 interest on N1m, will now pay N3,000 on the same amount because of the CBN loan”.

The MD said the bank was also introducing a package called Loan Buyback. The package is aimed at ending the untold hardship being experienced by members of the University community in the hands of other banks while soliciting for credit facilities. “We don’t mind which bank or financial institution you have taken loan, the moment the loan is below N750,000, we are willing to buy-it-back. If we buy that loan back, we will give you additional incentives and you will come back to where you are”. Mr. Adewale revealed that old customers, who had maintained accounts with the bank in the past, but left for one reason or the other, can now come back as they would be required to pay nothing for account reactivation. This is being done through the #bringbackourcustomers campaign#, an initiative of the bank meant to cement cordial and sustainable partnership with old and new customers.

He stated further that the bank had taken all precautionary measures against fraud and malpractices by strengthening its internal control mechanism. “What we have done is to first of all strengthen our internal control process. We have also strengthened our Audit Department. These two departments are well staffed, well equipped and manned by professionals. The Internal Auditor we currently have is a Chartered Accountant, a former Head of Internal Control Unit as well as a Chartered Microfinance Banker. So, having achieved that, they have the professional competence and skills to handle those departments”.

He equally promised that shareholders and depositors’ funds were safe,  assuring that the financial institution, popularly referred to as “Under the Tree of Mercy”, would continue to recruit professionals in the interest of the bank, Mr. Adewale said the UMFB was now being run by seasoned professionals which include five Chartered Microfinance Bankers and two Chartered Accountants, therefore, allaying the fears of stakeholders on the possible collapse of the bank, adding that the capital base of the bank is now about N72m, enough to weather the storm of any liquidity threat, he assured. He disclosed that in 2014, the bank closed with a profit-before-tax of N17.8m and that the bank was still able to recoup all the previous year’s losses.

“As at September 30 this year, our unaudited profit is N19m. Very soon, we will invite you to come and celebrate with us”, attributing the feat achieved by the bank to the vision of its Board of Directors and adherence to due process, which ensured that procedures were strictly followed, while granting credit facility to customers. Mr. Adewale said the future of the Nigerian economy relied on the activities of microfinance banks, which were established to make loans, credit and trading facilities available to the poor and low income earners. He, however, observed that UNAAB Microfinance Bank Limited was one of the customer-friendly banks around, urging the existing and prospective customers to patronise the bank and to also endeavour to visit its website at: www.microfinancebank.unaab.edu.ng