By Desmond Ejibas
Port Harcourt – The Niger Delta Development Commission (NDDC) Staff Cooperative Investment and Credit Society Limited has commenced the process of floating a Microfinance Bank in the country.
Mr Essien Franklin, President, NDDC Staff Cooperative, disclosed this on Wednesday while presenting roadmap for the formation of NDDC Cooperative Microfinance Bank Limited at a sensitization workshop in Port Harcourt
“The bank is offering the subscription by way of private placement of N250 million ordinary shares of N1 each at N2 per share for formation of the bank.
“NDDC Cooperative will retain controlling interest of minimum of 60 per cent of the total share structure of the bank, while 40 per cent will constitutes minority interest equity-holdings.
“The setting up of the bank is for sociology-economic empowerment of NDDC workers and the larger society.
“The net proceeds of the offer will be utilised for the registration, licensing, setting up of banking office and working capital,” he said.
Franklin explained that the cooperative would raise N150 million representing 60 per cent while the public would invest N100 million in a shareholder equity funding structure.
He said the bank would take-off fully in Port Harcourt in January 2021 after both shareholders had raised the statutory minimum N250 million benchmark.
“Also, the bank will give micro credits to the poor in the society, especially as the commercial banks are not too willing to grant non-asset base collateral credits, among others,” he added.
He said the central bank would provide needed support to enable the microfinance bank to achieve its set objectives as well as enable investors profit from their investments.
She said the floating of the Microfinance Bank was coming at the right time when hard decisions were being taken to reset the trajectory of NDDC.
“So, this initiative will not only touch the lives of NDDC staff but would also expand the frontiers of opportunities for the people of the Niger Delta region,” she expressed optimism.