Nigeria: Onabanjo Varsity Bank Moves Up
Lagos, Nigeria, September, 11 2007 -
The Central Bank of Nigeria (CBN) has granted provisional approval for the Conversion of the Olabisi Onabanjo University Community Bank Limited to operate as a Micro Finance Bank.
The letter of approval, with ref OFID/MFB/G2.72/07/026, signed by Mr. Okor Ezewu on behalf of the apex bank, stated that the conversion is subject to the bank fulfilling further set o conditions, which would enable it operate with full certification as a microfinance Bank in Ago-Iwoye Ogun State Nigeria.
Among the conditions to be met are submission of the names and curriculum Vitae of the management team to CBN for verification and approval before the issuance of operating license, and submission of a certified true copy of the certificate of incorporation of the company issued by the Corporate Affairs Commission of Nigeria.
Other conditions include, Registration with the relevant umbrella Association (i.e Microfinance Bank Association of Nigeria) when formed, and upgrading of the available management information system in order to ensure adequate flexibility, compatibility with CBN e-FASS, ease of integration with other systems and interface conformity with micro office application software.
In addition, the OOU microfinance bank was not to issue share of different classes without the prior approval of the Central Bank of Nigeria in writing.
The CBN also said that any change in the composition of the board of Directors/Shareholders on the basis of which the application for license was considered and approved shall be presented to the Apex bank for prior approval in writing. Furthermore, the bank is expected to prepare a revised business plan which incorporates necessary information, an institutional analysis of the strengths, weaknesses, opportunities and threats of the MFB and a review of the bank's risk philosophy/appetite and its' risk mitigation strategy.
University Spokesman, Niyi Oduwole explained that since its commencement of operation on March 10, 2003, at the Mini Campus, Ago-Iwoye, the OOU Community Bank has offered community banking services, customer-friendly oriented products and high yielding returns on investment to the shareholders, who are mostly members of the university community.
Within the 12 months of operation, the bank, which has the Vice Chancellor, Professor Odutola Osilesi as the Chairman of the Board, made a surplus that was far in excess of its total paid up capital.