The Chairman of Imo State Chapter of National Association of Micro-Finance Banks (NAMB), Ekwugha Innocent Ekwugha has pointed out the major problem of micro finance Banks (MFB) in Imo State. He revealed this at the 11th Annual General Meeting (AGM) of NAMB in Abuja.
According to Ekwugha, MFB have two major sources of revenue. One is from Credit and the other is from money market.
As a bank operating in the rural are their major objective is to get the bottom-line who are before now financially excluded, to be included financially.
He explains that the major source of revenue for MFB in the state was loans to civil servants. And that such loans are repaid through their salary at source. This is because their salaries used to be paid through MFB.
He said that since the present government directed all civil servant to change their salary account from MFB’s to commercial banks, the MFB have been having serious challenges in generating revenue.
Ekwugha Innocent Ekwhugha was honoured as the most proactive state Chairman of the year at the 11th AGM of NAMB.
Ekwugha said he was selected from 37 chairmen as the best because of the innovations in revenue drive he introduced in his state when government of the state removed salary accounts from MFB’s.