Business
Microfinance Bank Operators Debunk Allegations Of Selective Loaning
Some Microfinance Bank operators has in Lagos debunked allegations of discrimination against elderly Nigerians interested in accessing comfort and development loans.
The operators debunked the claim in an interview with The Tide source.
They said that their operations was moderated by microfinance banking policy of 2009 as reviewed in 2013 by the Central Bank of Nigeria (CBN).
In spite of the denials by most microfinance bank operators in Lagos, a cross section of Nigerians insist the banks engaged in high level discrimination in their loans offerings.
Chief Innocent Akinola, 56, says his had yet to recover from the shock and embarrassment he received recently from one microfinance banks.
According to Akinola, the bank closed its doors on him in March 2015 when he turned 56 years, in spite of his long standing relationship with them.
“For three years, I have received loans for both my business and personal needs without issues.
“I had also serviced the loans without problem until March when I sought for new loan for the expansion of my animal feeds business.
“The bank without notice after documentation only informed me that my demands was not approved because of my age.
“My case was worsened because my small company had already placed others for new machines based on our existing relationship,’’ he said.
Mrs Nneka Ifedi says her experience with a microfinance bank can be best described as hope raised and dashed.
According to her, the bank officials came and marketed at the right time when I need some funds to establish a small business.
“I did save money with the bank for about eight months but was refused the loan on the ground that am 57 years when I eventually applied,’’ she said.
Ifedi also said that her experience with the banks also affected her business plans and the enthusiasm to continue with the small business dream.
Also speaking, Mr Nkem Nweke, a former banker, said that “the operational rascality of microfinance banks on loans stemmed from poor regulation’’.
He urged the regulators to be alive to their responsibilities, arguing that most of the microfinance banks are involved in unwholesome banking practices.
Reacting to the allegations, the chairman of National Association of Microfinance Banks (NAMB), Lagos Chapter, Mrs Clara Oloniniyi, said the banks did not get involved in selective credit.
“We all know the rationale for establishing the sub-sector, which is to extend credit facilities to the active poor.
“The sub-sector is crucial to the development of the country, so, we must kick against anything that could cause its downturn.
“And one such thing is not adhering to rules stipulated by the regulators to guide the sub-sector.
“According CBN operational guidelines, the age limit for accessing loan in banks is between 18 and 65 years.
“If you are below 18 or above 65 years though active, we can’t grant you credit.
“Apart from CBN guidelines, it is generally assumed that people in their 60’s get sick and any money granted to such persons may fall under bad debt.
“And we all know bad debts don’t do anything than causing operations to wind up.
“So, any practitioner that went outside the age limit stipulated by CBN is doing that at his or her own risk,’’ she said
A former president of NAMB, Mr Mathias Umeh, said the approved age limit for accessing loans in microfinance banks is between 18 years and 60 years.
According to him, anyone below 18 year is adjudged incompetent in money management and anyone above 60 years is adjudged inactive.
“Remember that in this country’s constitution the retirement age is 60 years, meaning once you clock 60 years you must go and rest.
“Microfinance banks deal with the active poor, people who still have the required strength to run business which the loan was taken for,’’ he said.
The Managing Director of Bosak Microfinance, Lagos, Mr Kola Bello, also debunked the alleged selective credit practiced by the microfinance banks.
“We are not discriminatory. We simply abide by CBN guidelines for microfinance banks.
“Once you are below 18 and above 60 years, you cannot access loan from us — remember we deal with the active poor.
“I will advise my colleagues not to be too bullish in their tasks but to be cautious in their risk management approach,’’ he said.
Meanwhile, a lawyer, Mrs Caroline Ozuduh, has advocated for a review of the age limit for Nigerians interested in banks’ loans from 60 years to 75 years.
According to Ozuduh, the need for the review stemmed from the fact that some elderly ones are still active after 60 years.
“In fact, that is the time some elderly Nigerians blessed with good health should apply their experience in micro economic development.
Traders displaying snails for sale at Oyingbo Market in Lagos recently.
The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.
A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.
The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.
King Onunwor