- Oodua Cooperative Opens Microfinance Bank
The Oodua Cooperative Conglomerate Limited has established a microfinance bank in Ibadan, the Oyo State capital, with a plan to have branches in all the South-West states.
At the opening of the Cintrust Microfinance Limited on Wednesday, the Vice President of the conglomerate, Mr. Felix Ajibode, who is also the promoter of the bank, said the financial institution had its root in the defunct Cooperative Bank.
He added that it was established to protect its members who were burdened by high interest rates charged by commercial banks on loans.
At the event were the President, OCCL and Chairman of the Board of Directors of the MFB, Mr. Victor Adenigbagbe; former Managing Director of the defunct Cooperative Bank, Ariyo Ajaja; and other stakeholders in the conglomerate.
Ajibode said, “The establishment of Cintrust Micro Finance Limited has its root in the history of the defunct Cooperative Bank. Unfortunately, during the recapitalisation exercise in 2005, the bank was unable to meet up with the N25bn minimum requirement to operate as a commercial bank. It had to be merged with other banks.
“A cooperative movement without its own bank is not complete. Fortunately, I became a member of the cooperative conglomerate in 2013 and made board members know that our cooperators are suffering in the hands of commercial banks due to the high rate of interest and other charges on the loans advanced to them. In 2007, the board began the process of starting a microfinance bank to meet the yearnings of our members.”
He added, “We refer to the old Cooperative Bank as being conservative because it complied with all the Central Bank of Nigeria’s regulations. That is what we want to emulate to protect our integrity. The interest on loans to our customers is friendly and we will be transparent in our dealings with them. We are starting in Ibadan but we shall soon have branches in all the South-West states.”
While speaking about the capital base of the bank, Ajibode noted that many microfinance banks had folded up in the country, because they were established with borrowed funds.
The Managing Director of the bank, Wale Adefioye, said the bank had hit the market with several products meant to boost customers’ trade, among other benefits.
