MICROCAPITAL STORY: Treasure Microfinance Bank (TMFB) to be Launched February 26 in Lagos, Nigeria, and to Seek Listing on Nigerian Stock Exchange (NSE)

Dr. Tunde Ayeye, Chairman of the newly licensed Treasure Microfinance Bank (TMFB) headquartered in Lagos, Nigeria, announced on Tuesday that the bank will be officially launched on February 26th, 2008. According to Chairman Ayeye, the bank has secured NGN 50 million, equivalent to USD 432,000, of start-up capital and plans to reach NGN 1 billion (USD 8.6 million) within one year and become a listed company on the Nigerian Stock Exchange (NSE). TMFB does not report to the MIX Market, the microfinance information clearinghouse, and the Central Bank of Nigeria’s (CBN) listing does not provide any additional financial information. However, the CBN does report that TMFB is a registered microfinance bank since February 1st, 2008 and that it was formerly known as the Oja Odan Community Bank. Previous reporting on TMFB by MicroCapital can be found here.

According to an article entitled “Treasures Microfinance plans to get listed on NSE,” from Vanguard, Mr. Obialo Okonkwo, the Head of Control and Compliance for TMFB, stated that customers borrowing over NGN 500,000, equivalent to USD 4,320, will be required to put down collateral securities, such as the deed to private property owned by the borrower, in compliance with Nigerian law.

The Head of Operations and Customer Services of TMFB, Mrs. Kate Banjoko, said that the “Treasures Microfinance Bank mission is to help people succeed through the delivery of tailor-made financial services for the benefit of underbanked and unbanked enterprises and individuals. The bank is determined to create significant local impact and achieve global relevance in line with its vision of becoming a leader in its sub-sector.”

TMFB is entering a growing Nigerian market for microfinance products and services. As pointed out in, “New Vista Opens in Banking for the Poor ” by Dr. Bola Fajemirokun, Executive Director of the Development Initiatives Network (DIN) based in Lagos, the Nigerian population of 140 million is roughly equivalent to that of Bangladesh, a market containing 18 million microfinance borrowers; yet licensed microfinance institutions (MFIs) in Nigeria provide services to less than one million. He continues to cite a CBN finding that “at least 40 million may require [MFI] services.” DIN, a non-governmental organization (NGO), was established in 1999 and produces “qualitative research to promote social justice and development in Nigeria,” according to their Web site. (For further information on Nigeria’s policies on microfinance, refer to a previous MicroCapital article.)

Mrs. Modupe Adelaja, the Director General of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), a government agency administering assistance programs for small businesses, will give the keynote address at the bank’s commissioning. MicroCapital recently reported on SMEDAN here. The guest speaker lecture on “The Role of Micro Financing in Nation Building” will be given by Mr. Peter Bankole, the Director of the Enterprise Development Services (EDS) at Lagos Business School. EDS is a center providing support services, such as consulting and research, to Nigeria’s small and medium enterprises (SMEs).

No contact information or Web site was found for Treasure Microfinance Bank.

By Anthony Busch, Research Assistant

Additional Resources:

Central Bank of Nigeria: Home, Treasure Microfinance Bank

Development Initiatives Network: Home

Enterprise Development Service: Home

Lagos Business School: Home

MicroCapital article, May 10, 2007: “Mergers and Acquisitions in Nigerian Microfinance to Ease Compliance with Forthcoming Regulation”

MicroCapital article, August 1, 2007: “Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Microfinance Banks Association of Nigeria Partner Together in Nigeria’s Microfinance Sector”

MicroCapital article, June 22, 2007: “Treasure Microfinance Bank to Begin Operations in Nigeria”

Microfinance Gateway: Home, “New Vista Opens in Banking for the Poor “, by Dr. Bola Fajemirokun, 2007

MIX Market: Home

Nigerian Stock Exchange: Home

OANDA: FXConverter

Vanguard: Home, “Treasures Microfinance plans to get listed on NSE”, by Peter Egwuatu, February 20, 2008

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