MICROCAPITAL BRIEF: Nigeria’s Joint Farmers Microfinance Bank Launches Operations, Serves 187 Agricultural Cooperative Societies

The Joint Farmers Microfinance Bank (JFMB), a microcredit organization that is based in Oyo, Nigeria, has commenced operations with unspecified number of branches in Abuja, Delta, Edo, Ekiti, Kogi, Kwara, Lagos, Ogun, Ondo and Osun. A group of 187 agricultural “cooperative societies”[1] recently formed the organization with the aim of expanding its services to farmers in “the whole country”[1] by an unspecified date.

Muideen Adekunle, a board member of JFMB and the Chairman of “Nigeria Cassava Growers Association (NCGA) in Oyo State,”[1] reportedly said that “the NCGA headquarters has promised to link the Joint Farmers Microfinance Bank to donors”[1]. Mr Adekunle added that he is looking to connect JFMB to the Micro, Small and Medium Enterprises Development Fund [2] of the Central Bank of Nigeria (CBN), the central banking authority of the country. This fund offers “seed capital”[2] with total value of NGN 220 billion (USD 1.1 billion) as of 2015.

As of 2015, JFMB aims to raise capital with total value of NGN 100 million (USD 500,000) from members of NCGA in order to comply with capital requirements of CBN. Further financial information on the organization is not publicly available. NCGA is one of the 187 founding agricultural “cooperative societies”[1] of JFMB.

By Alíz Crowley, Research Associate

About Joint Farmers Microfinance Bank (JFMB)

The Joint Farmers Microfinance Bank is a microfinance organization that is based in Oyo, Nigeria. The organization was formed by 187 agricultural cooperatives in 2015 when it launched operations with unspecified number of branches in Abuja, Delta, Edo, Ekiti, Kogi, Kwara, Lagos, Ogun, Ondo and Osun. As of 2015, the organization aims to raise NGN 100 million (USD 500,000) in order to comply with capital requirements of the Central Bank of Nigeria. Further financial information on the organization is not available.

About Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the act of parliament that created CBN, its statutory mandates are to issue currency and sustain its international value as well as to maintain monetary stability and a sound financial system by acting as the banker and financial adviser of the federal government of Nigeria.

Sources and Additional Resources

[1] Naija247News.com, Farmers inaugurate micro-finance bank in Oyo

[2] Central Bank of Nigeria, Guidelines for the Operation of Micro, Small and Medium Enterprises Development Fund for Nigeria

[3] Central Bank of Nigeria, Development Finance, Microfinance

MicroCapital Universe Profile: Joint Farmers Microfinance Bank (JFMB)

MicroCapital Universe Profile: Central Bank of Nigeria

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