As part of its initiative at ameliorating the impact of the coronavirus (COVID-19) within its environment, Umuchinemere Pro-credit Micro Finance Bank, has empowered a total of 2,356 active poor people in Enugu State with the sum of N518.8m. The sum represents an operational capital to finance their micro and small scale enterprises to sustain and improve their well-being in the first six months of 2020
In a release made available to TheNiche, the Head Public/Media Relations of the Bank, Abuchi Anueyiagu, explained that the largesse was in pursuant to the objective of poverty alienation of the Pro-Credit institution as envisioned by its founder, the Catholic Diocese of Enugu.
The outbreak of the pandemic disease had forced a total lockdown of the country for three months, leading to economic difficulties that heavily affected the money market.
The fund, which is approximately N46.8m lower than the N565,584,457 that the bank disbursed to 2,503 persons same period in the previous year, is meant to engage the beneficiaries in meaningful micro and small scale enterprises.
In the gender distribution of the beneficiaries of the amount, 1,007 females were given the sum of N288,215,500, while 1,349 male beneficiaries received N230,596,900.
N37m was granted to farmers as agriculture loans, as against the sum of N50m that was given to them in 2019.
According to the UPMFB’s Head of Credit Department, Charles Udeani, “There was a general decline in loan disbursement, both in terms of amount/volume and number of beneficiaries from the preceding year, with a 147 decrease in the number of the beneficiaries from the one of 2019.”
Umuchinemere Pro-credit Micro Finance Bank is among the leading microfinance institutions trying to help enhance the quality of life and well-being of the active poor and generally improve the economy in the country.
It would be recalled that the bank had in a bid to boost agriculture and local production of food to mitigate hunger in the land, taken the first position in the recent Central Bank of Nigeria’s assessment of loans granted to the agriculture sector by microfinance banks in Nigeria.
Difficulties associated with non-payment or unwillingness to repay loans, which are being compounded with lack of adequate, efficient, effective and easily accessible ICT national bio-data base to check or track borrowers and their records, have been identified that hamper giving of more funds to meet the financial needs of the active poor people in the society.
Making a strong case for the establishment of a special court to handle loan repayment defaults, Udeani observed that lack of strong laws and instruments for loan recovery posed a serious impediment in offering credit facilities to people, which is a big problem not just to meeting the financial needs of people but improving the economy of the country and growth or development.
