|African Development Bank to help start Nigerian micro finance bank|
|Emerging Markets Business News|
|Thursday, 03 December 2009 08:30|
"The grant is in the tune of over one million dollars, which is quite sizeable for a micro finance bank.
"We have been involved in micro finance in the country for several years. We are still fine-tuning the new proposals.
"It is critical, if you like, to fight poverty at the grassroots level, and this grant comes really timely.
"The idea is to reach people with very little income to have access to financial services,'' he said.
According to him, AfDB is committed to developing the financial sector in Nigeria and promoting private sector investment in order to create jobs and increase income as a way of fighting poverty.
Assan said the grant was for African Private Sector Assistance (FAPA), which would be sponsored by Japan and managed by the AfDB.
He said that 7.7 percent of the FAPA technical assistance contribution would be used to co-finance the provision of technical assistance to ABN to build its capacity during the first few years of operation.
"FAPA funds will pay to bring in long-term management staff as well as short term experts for the implementation of a new IT system and staff training.
"It will cover costs related to these experts for a three-year start up phase, after which trained ABN staff members will replace them,'' Assan said.