• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

Explained: This is why Micro Finance banks are skeptical about giving loans to businesses

Chris Pemu by Chris Pemu
August 16, 2017
in Business News
Stock Exchange
Share on FacebookShare on TwitterShare on Linkedin

In a recent discussion with journalists in Abuja, the President of the Micro Finance Bank Association and Chief executive of Hasal Micro finance bank, Mr. Rogers Nwoke, acknowledged loan defaulters as a major threat to the Micro Finance bank industry.

A loan default is simply the failure to repay a loan according to the terms agreed to.

Mr. Rogers Nwoke attributed this obstacle to the bad credit culture in Nigeria. He laid emphasis on the fact that there are now “serial defaulters” who borrow money to either start or expand their businesses and intentionally refuse to pay back until legal actions are taken by Micro Finance banks.

RelatedStories

TechConnect 4.0: Championing innovation, inclusion and collaboration for Africa’s Financial Future 

TechConnect 4.0: Championing innovation, inclusion and collaboration for Africa’s Financial Future 

December 27, 2024
NDIC

Insecurity forces closure of five microfinance banks in the southeast in September 2023 – NDIC 

September 27, 2024

He further disclosed that majority of these serial defaulters take loans from Micro Finance bank who do not have the resources to reclaim their money.

More so, for those who are willing but can’t pay owing to relative business challenges “all we do is sit with the person and have a work-out discussion with them and encourage them to pay.”

As a result of this, Mr. Rogers Nwoke, said that loans are given mainly to customers who have a good record of paying back.

To avert violence in the course of reclaiming its money, Microfinance banks have to embark on legal means which is most times not cost effective as it is expensive and takes up a lot of time.

This trend of consistent loan default experienced in the Micro Finance bank industry is bound to inhibit its growth as it will constrict its operating capital.

Access to loans by business owners will now be a rigorous one as Micro Finance banks will take extra measures to mitigate the risk of liquidation.

Tags: MFBMicrofinance Banks
Chris Pemu

Chris Pemu

Christopher B. Pemu has a degree in Political Science from the University of Lagos. He joined Nairametrics in 2014 as News Editor and later as Managing Editor. He currently serves as the General Manager of Nairametrics. He takes pleasure in traveling, enjoys world politics and in sport, he loves watching football and tennis.

Related Posts

TechConnect 4.0: Championing innovation, inclusion and collaboration for Africa’s Financial Future 
Op-Eds

TechConnect 4.0: Championing innovation, inclusion and collaboration for Africa’s Financial Future 

December 27, 2024
NDIC
Financial Services

Insecurity forces closure of five microfinance banks in the southeast in September 2023 – NDIC 

September 27, 2024
CBN stops outbound IMTO transactions, also limits inflow payouts to Naira
Financial Services

CBN mandates microfinance, mortgage banks and DFIs to submit financial returns monthly or risk sanctions

March 7, 2024
CBN
Breaking News

CBN unveils new online platform for MFB licensing 

September 20, 2023
CBN forex restrictions on food itemsCBN approves new cheque standard for banks, Banks complex documentation makes it harder to access foreign exchange for Nigerians
Financial Services

Microfinance banks’ loan to Nigerian private sector hits N1.12 trillion in June 2022

August 4, 2022
Bank customers with CBN rise to 57 million in April 2023
Currencies

CBN cautions microfinance banks against forex transactions and wholesale banking

August 21, 2021
Next Post
Dear Adeosun, please drop the dollar treasury bills refinancing idea, do this instead.

Dear Adeosun, please drop the dollar treasury bills refinancing idea, do this instead.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Dry Onions up 30%, pepper up 16.67% in Lagos markets as buyers and sellers react to July 2025 price swings 
  • How Fintech Infrastructure powers the modern Trading Industry 
  • UBA’s LEO becomes Africa’s First Chatbot to enable cross-border payments 

Follow us on social media:

Recent News

When you travel to your village, why do you buy yams, palm oil and bananas and return them to your city?

Dry Onions up 30%, pepper up 16.67% in Lagos markets as buyers and sellers react to July 2025 price swings 

July 17, 2025
How Fintech Infrastructure powers the modern Trading Industry 

How Fintech Infrastructure powers the modern Trading Industry 

July 17, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics