Microfinance banks launch Inter-member Liquidity Placement Platform (ILPP)

Microfinance banks operating in the country under the umbrella name of National Association of Microfinance banks (NAMB), have taken a step towards solving one of the intractable problems confronting their members and leading to insolvencies. On Monday April 19, the banks the launched Inter-member Liquidity Placement Platform (ILPP) to help member MFBs have access to short term liquidity.

According to a statement issued by the MDCL that midwifed the platform, this is in line with the objective of creating a shared services platform for the industry, microfinance banks operators had entered into strategic partnerships with other companies to help them achieve their business goals.

“It is important for all MFBs to unite and speak with one voice, so we can have a voice in the bankers’ committee meetings and be able to dictate policies that affect us as an industry’’, the statement said.

The President of Nigeria Association of Microfinance Banks (NAMB), Alhaji Yusuf Ahmad Gyallesu, was quoted in the statement as saying the ILPP would provide them an opportunity to look inwards for liquidity, instead of looking outside.

At the event hosted by the MDCL, a shared platform for microfinance digital lending built in partnership with Migo was also launched.

It will be noted that many MFBs are currently battling to shore up their capital and meet the CBNs new regulation on minimum capital for MFBs. The central bank has said that the April 30 deadline for all MFBS to meet the capital requirement will not be extended.