DBN Advocates Sustainability Banking for Microfinance Banks

Image

As Nigeria and global communities continue to grapple with effects of climate depletion and economic uncertainties enforced by the COVID-19 pandemic, Development Bank of Nigeria (DBN) has urged Microfinance Banks (MFBs) and its other Participating Financial Institutions (PFIs) to improve their sustainability efforts and become more responsive to their social and ecological environment.

This was the thrust of deliberations at a recent webinar session themed Creating a sustainability community of Practice for Nigerian Microfinance Banks which was organised by DBN for MFBs and PFIs.

The initiative is focused on further deepening DBN’s efforts to increase awareness on sustainability issues, and also positively influence its Participating Financial Institutions (PFIs) Sustainable Development Goals (SDG) focused initiatives and operations.

DBN Chief Operating Officer, Mr Bonaventure Okhaimo, in his welcome address said there is increased global attention on social impact and contribution of business to their environment and society. He explained that the webinar session is to initiate a conversation around sustainability initiatives and implementation strategies for financial institutions in Nigeria.

“Currently, the overall awareness of sustainability and its transitions for the microfinance ecosystem has not been clearly articulated in Nigeria due to the fact that most MFBs regard lending as the most essential service to be rendered to end-lenders.

“This session is designed to enable PFIs and DBN affiliated MFBs to have a more robust proposition about sustainability and will open them up to myriad advantages, including external funding, generation of deeper trust with stakeholders and legitimization of operations,” he said.

Delivering her keynote address, Special Adviser to CBN Governor on Sustainability, Dr Aisha Mahmoud, stated that deliberations on emerging issues of sustainability are important for the financial ecosystem.

According to her, MFBs, by virtue of their mandate, are already practising the social pillar of sustainability by lending to the underserved sectors of the economy, but have to focus more on the environmental impact of their lending by looking into the activities and operations of their investees through a sustainability lens. She added that today’s successful businesses are those that integrate sustainability in their operations.

“We cannot ignore the environmental pillar because it is as important as the social pillar. Due to our way of unsustainable consumption and production, we are constantly depleting the natural capital.

“We need to shift our growth pathway from the current trajectory to the one that improves the quality of human life while living within the carrying capacity of the planet earth.

“Going by feedback, companies always think sustainability is an additional cost to the business, but we need a shift from that perception because sustainability is a win-win situation that connects people, planet and the economy.

“Studies show businesses that integrate sustainability well outperform those that do not, as it lowers the cost of capital, results in better operational performance and positively influences the stock price,” she said.

In her remarks, DBN Sustainability Specialist, Lolade Awogbade, who spoke on sustainability benefits for MFBs, said sustainability is more important in these times of pandemic coupled with economic instability, and it is essential that there is an overall understanding of the influence MFBs have on communities and environments which they serve.

She added that investing in social and environmental sustainability initiatives will not only help finance companies in fulfilling their social mission but also differentiate them from competitors, give access to new market segments, provide access to new funding and improve their brand and corporate image.

“A study conducted by European Journal of Sustainable Development, the primary objective of Microfinance has largely been economic, but in recent years, the focus has shifted to a more social or developmental objective.

“In addition, there is a new entrance with the concept of Green Microfinance which entails providing low or moderate-income individuals with loans and technical assistance to help them procure and set up green or environmental friendly products and technology,” Awogbade said.

Share
Related Stories
Image
18-January-2024

Access Bank Eyes 80% Equity Stake in Uganda’s Finance Trust Bank

By Dipo Olowookere A Nigerian lender, Access Bank Plc, wants to acquire about 80 per cent equity stake in Uganda’s Finance Trust Bank (FTB) as part of its expansion drive. Access Bank, which is one of the biggest banks in Nigeria, will purchase the shares held by FTB’s institutional shareholders who have sought to exit to a strategic and long-term shareholder. However, the transaction, which is anticipated to conclude in the first half of 2024, is subject to regulatory approvals by the Central Bank of Nigeria and Bank of Uganda. In a statement on Wednesday, January 17, 2024, Access Bank

Image
22-January-2024

70 Win Cash Prizes in Stanbic IBTC Bank Reward4Saving December Draw

By Modupe Gbadeyanka The December 2023 draw of the Stanbic IBTC Bank’s Reward4Saving Promo produced 70 additional winners, a statement from the financial institution has disclosed. Stanbic IBTC Bank introduced the Reward4Saving promo in 2021 to encourage customers to save for rainy days. Customers who deposit at least N10,000 in their Stanbic IBTC Bank Savings Account or @ease wallet for a minimum of thirty days, qualify for the draws. The campaign, currently in its third season, runs till August 2024 and will reward seven customers with N2 million each across seven regions in its grand finale draw. At the December

Image
14-February-2024

Access Bank to Give Customers Prizes in Love is More Campaign

By Modupe Gbadeyanka Access Bank Plc has disclosed that its customers would win different prizes in its MyAccessMoreValetineStory designed to reward them for their loyalty. The campaign was launched to make the love season memorable for its valued customers, a statement from the lender explained. It stated that special Valentine’s offers, themed Love is More, were introduced during this period to spread love and financial well-being all through February. “Access Bank is committed to enhancing the financial well-being of our customers while celebrating love in all its forms. “These Valentine’s offers are a token of our appreciation for their continued

Image
10-February-2024

CBN Removes Exchange Rate Band on Interbank FX Transactions

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has announced a removal of the spread on foreign exchange (FX) transactions among banks, in its most adacious efforts to prop up the country’s forex market. In a notice released on Friday evening signed by Mrs Omolara Omotunde Duke, the Director of Financial Markets Department, the CBN announced it is discontinuing any cap on the spread on interbank foreign exchange transactions and restrictions on the sale of interbank proceeds. “A key objective of the ongoing foreign exchange market reforms by the Central Bank of Nigeria is to promote a market-based price

More Stories
Image
28-January-2021

Crude Goes South Despite Heavy Inventories Drop

By Adedapo Adesanya Oil prices dropped again on Wednesday despite a massive drop in crude inventories in the United States outweighed by concerns about the coronavirus pandemic effect on demand. At the market yesterday, the Brent crude lost 4 cents or 0.07 per cent to sell at $55.84 per barrel while the United States’ West Texas Intermediate (WTI) chipped off 24 cents or 0.45 per cent to trade at $52.53 per barrel. The Energy Information Administration (EIA) said on Wednesday that the US crude oil stockpiles dropped by nearly 10 million barrels last week, the lowest since March at 476.7

Image
23-December-2017

Lt-Gen Tukur Buratai, a Quintessential Gentleman and a Soldier’s Soldier

By Comrade Oladimeji Odeyemi “The most important thing I learned is that soldiers watch what their leaders do. You can give them classes and lecture them forever, but it is your personal example they will follow.”- General Colin Powell. Nearly all leaders can stand adversity, bit if you want to text a man’s character, give him a war. This very word fit into the compass mind under which the character of Lieutenant General Tukur Yusuf Buratai has evolved. In the war against terror,  his leadership qualities stood out the most. With this treatise, with this article, a reflection on the

Image
15-July-2019

Investors Can Still Get Unclaimed Dividends of Dead Firms—SEC

By Adedapo Adesanya Acting Director General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, has assured investors that they would still be able to get their unclaimed dividends of defunct companies listed on the Nigerian Stock Exchange (NSE). The SEC chief gave this assurance in a statement issued yesterday in Abuja, where she made it clear that shareholders must be paid what belongs to them no matter what so as to boost confidence in the capital market. “They invested in a company and since the company has gone under, there is no reason why they should not have

Image
06-April-2020

CBN Receives N19.5bn from 47 Donors for COVID-19

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has disclosed that contributions made by the Private Sector Coalition Against COVID-19 (CACOVID) to tackle the coronavirus has crossed the N19 billion mark. Total contribution has now reached 19.5 billion as N3.4 billion pledged by  individuals and organisations were yet to be redeemed Business Post had reported that the Fund, set up by the apex bank, was up to N15.3 billion, but over the weekend, Director, Corporate Communications, CBN, Mr Isaac Okorafor, disclosed in a statement released over the weekend that the amount has risen to the present level. He further

Image
18-January-2019

Preferential Tariffs to Help Western Sahara to Develop

Western Sahara will enjoy preferential trade tariffs on its exports to the EU; origin of products will be traceable; agreement allows region to develop even before a political solution is found On Wednesday, Parliament backed a proposal to lower tariffs in the territory of Western Sahara to the same level as Moroccan tariffs, to benefit local populations. The Parliament gave the green light by 444 votes to 167 and 68 abstentions, to extend the preferential tariff rates to the territory of Western Sahara after the European Commission and Morocco agreed on a traceability mechanism, which helps define the origin of

Image
10-September-2016

Ogun Pensioners Receive August Pay

Pensioners in Ogun State have received their entitlements for the month of August, Governor Ibikunle Amosun has disclosed. In a statement issued by his Senior Special Assistant on Media, Mr Adejuwon Soyinka, the Governor said this was in fulfilment of his commitment to the welfare of public servants and pensioners in the Gateway State. Mr Amosun further said that workers in the state have also received their own salaries for the month of August. In the same vein, the state government has also ensured the payment of part of the outstanding cooperative deductions due to the workers. Commissioner for Finance

Image
26-September-2023

Sustainable Development is a Necessity for Every Society in the World

By Professor Maurice Okoli For the majority of African leaders and delegates, it was a momentous achievement, to participate and contribute speeches with diverse themes at the podium during the 78th session of the UN General Assembly (UNGA) in New York. The UNGA traditionally meets in September, the highest global gathering to make several significant decisions on what the organization, consisting of 193 UN members, is generally expected to do. It has wrapped up its 78th annual session with another huge pack of commitments to engage in reshaping a better life for the entire population and Development paradigms in the

Image
25-January-2019

2018 Budget Implementation Less Than 5%—Lawmaker

By Modupe Gbadeyanka A lawmaker from Kwara State, Mr Aliyu Ahman-Pategi, has lamented the poor implementation of the 2018 budget by the executive. The political economist, who is representing Edu/Moro/Patigi constituency at the lower chamber of the National Assembly, said the level of implementation of the 2018 budget was less than five percent, which he described as very poor. Mr Ahman-Pategi, while contributing to the debate on the 2019 budget estimate of N8.8 trillion on Wednesday, said the executive was just making the efforts of the parliament a waste of time if the implementation was poor. “The percentage of implementation

Ad
Ad
Recent Stories
Image
23-February-2024

How MultiChoice Empowers Nigerian Youth Through Creative Investment

As global populations age, Africa remains a bastion of youthful promise, with around 70% of the continent’s population below the age of 30. This youthful demographic can be an asset – but only if it is developed, by empowering young people through training, and by giving them a stake in the growth of their countries’ economies. Helping to develop young people’s abilities and expanding the pool of skills is also in the interests of industry and big business. Over the years, the Federal government of Nigeria embarked on youth empowerment initiatives to harness the skills and energy of Nigerian youths

Image
23-February-2024

Eva Adelaja Girls’ At 60: Old Students Donate to Orphanage, Thrill Students

By Adedapo Adesanya It has been an eventful celebration at the ongoing 6oth Anniversary of Eva Adelaja Girls’ Secondary Grammar School, Bariga, Lagos. The event was planned to celebrate the institution established by the late educator, Mrs Evangeline Adebayo Adelaja, in 1964. Particular resplendent in this celebration are the alumni of the school, the Eva Adelaja Girls’ Secondary Grammar School Old Girls’ Association, which have been on the ground to ensure that the planned activities go smoothly. The event, which kicked off with the Praise Day and Community Hymn Singing held at Chapel of Christ the Light in Alausa, Ikeja,

Image
23-February-2024

FAAC Disburses N1.2trn to FG, States, Councils for February Allocation

By Aduragbemi Omiyale About N1.2 trillion, precisely N1.149 trillion, has been disbursed to the federal, state and local councils as their allocation for February 2024. The money was part of the revenue generated by the nation in January 2024. A total of N2.068 trillion was generated last month by Nigeria, but N1.149 trillion was shared, comprising distributable statutory revenue of N463.079 billion, Value Added Tax (VAT) of N391.787 billion, Electronic Money Transfer Levy (EMTL) of N15.922 billion, and Exchange Difference revenue of N279.028 billion. A communiqué issued after the end of the Federation Account Allocation Committee (FAAC) meeting held yesterday

Image
23-February-2024

Unlisted Securities Rise 0.33% After Recording Two Price Gainers

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.33 per cent appreciation on Thursday, February 22. This increased the wealth of investors by N5.16 billion during the session, with the market capitalisation growing to N1.576 trillion from the previous day’s N1.571 trillion. Following the same trend was the NASD Unlisted Security Index (NSI), which went up by 3.8 points to wrap the session at 1,162.77 points compared with 1,158.97 points recorded at the previous session. There were two gainers against one loser at the session on Thursday led by bellwethers – Aradel Holdings Plc and FrieslandCampina Wamco

Image
23-February-2024

Naira Falls at NAFEX, Parallel Market as Govt Battles Speculators

By Adedapo Adesanya Despite the unconventional approaches to ease the free fall of the Naira, its value weakened against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, February 22 by 1.9 per cent or N28.73 to close at N1,571.31/$1 compared with the N1,542.58/$1 it was transacted in the midweek session. The domestic currency suffered the loss despite the supply of foreign exchange (FX) improving by 11.7 per cent or $20.11 million to $192.25 million from Wednesday’s $172.14 million. However, the local currency appreciated against the Pound Sterling in the official market yesterday by N142.83

Image
23-February-2024

Oil Prices Up as Houthis Intensify Attacks in Trading Sea Routes

By Adedapo Adesanya  Oil prices went up on Thursday as Iran-aligned Houthis stepped up attacks in the Red Sea near Yemen while the market faced a large build in crude inventories in the world’s largest producer, the United States. During the session, Brent crude futures increased by 66 cents to $83.69 per barrel and the US West Texas Intermediate (WTI) crude futures surged by 76 cents to $78.67 a barrel. Worries came as the Houthis said they would escalate their attacks on ships in the Red Sea and other waters, adding they have introduced “submarine weapons” to reach their goals.

Image
23-February-2024

Customs Street Cracks by 0.12% as Traders Sell Off Wema Bank, Others

By Dipo Olowookere The bulls lost control of the Nigerian Exchange (NGX) Limited to the bears on Thursday amid sustained weak investor sentiment. Customs Street ended in the red zone by 0.12 per cent after it recorded 20 price advancers and 28 price laggards, implying a negative market breadth index. DAAR Communications was on top of the losers’ table yesterday after it let go of 10.00 per cent of its previous day’s closing price to trade at 72 Kobo. Wema Bank shed 9.93 per cent to sell at N7.80, PZ Cussons went down by 9.89 per cent to N24.60, Academy

Image
22-February-2024

FG to Resume Direct Cash Transfers to Poor Nigerians as Hunger Spreads

By Adedapo Adesanya Amid current realities, the federal government intends to restart direct cash transfers to the poorest and most vulnerable Nigerians, after a scandal led to the suspension of the programme last month. The Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, revealed this during the Ministry’s retreat held in Uyo, Akwa-Ibom State. He said approximately three million people are recipients of the scheme but due to the escalating cost of living, the government anticipates that an additional 12 million households could qualify for these direct payments. The Finance Minister said, “The presidential panel on

Image
22-February-2024

Lagos Plans Daily Free Meal for Residents, Markets for Cheap Food Items

By Modupe Gbadeyanka About 1,500 residents of Lagos State will have access to one free meal per day to cushion the effect of the economic hardship in the country, Governor Babajide Sanwo-Olu has declared. Mr Sanwo-Olu, while answering questions from journalists during a media chat on Thursday, said his administration would establish at least 42 Sunday Markets across the metropolis for cheap food items, though the commencement of this initiative is yet to be revealed. There has been a pocket of demonstrations across the country over the rising hunger in Nigeria as a result of high inflation and the devaluation

Image
22-February-2024

WINBAFRICA Plans Big for 10th Anniversary

By Modupe Gbadeyanka All is now set for the 10th anniversary of WINBAFRICA themed Bridging the Gap: Celebrating a Decade of Nation-building. The organisation is gathering stakeholders together on Monday, February 26, 2024, for the event at the Alliance Francaise in Ikoyi, Lagos. The group was formed in 2014 and has since then promoted girl-child education and empowered women and young girls in critical thinking and leadership skills in secondary schools across Africa. As part of activities lined up for this year’s celebration, WINBAFRICA organised an annual school debate competition and scholarship programme for 20 young girls across the continent.