Expert seeks reduction of micro finance license fee

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By Oladele Eniola
Lagos, May 5, 2022 Mr Ayodeji Jaccuss, Co founder, MenaCred, a lending company, on Thursday, urged the Federal Government to reduce the cost of obtaining a Micro finance licence.
Jaccuss made the plea in an interview with newsmen in Lagos.
He noted that the reduction of the licence fee would help in creating a more competitive and enabling environment in the sector.
“The importance of regulatory laws cannot be overemphasised so to be able to run a lender company, you must have a state lenders licence to operate, then it you want to go a notch higher, you would need a micro finance licence.
“The main issue is that if we want to elevate by getting a micro finance licence, the fee for that is a whole lot and there is basically no middle ground between them.
“If we take a look at other developed countries, there is a middle ground and modules where institutions like ours can operate and clear boundaries are given on what you can do and not.
“The government can help with a well structured licensing regime for the financial technology and lender companies as these would help in driving the sector and making it a more competitive place,” he said.
He urged the government to collaborate more with private financial institutions in distributing government-based fund.
“The government can collaborate with institutions like us when it comes to distributing funds cause we have the database of customers and individuals and we will effectively monitor for repayment.
“With that, we would be able to impact directly into the lives of people, cause we have all the necessary information we need on the beneficiaries and those who genuinely need them would be those who get it,” he said.
Jaccuss commended the Federal Government for clamping down on some lender companies noting that the method of shaming customers was unacceptable.
He said that there were better ways in retrieving debts, noting that proper checks should be carried out before giving out loans.
“Shaming borrowers and also sending unnecessary messages to family which breaches the policies that come with credit is demeaning as there are other ways to go about it.
“The Federal Government must be commended for clamping down on some lender companies as there are better ways to go about this and one of that is by performing a credit check and by strengthening your algorithm.
“In other countries, there are grave consequences for credit defaulters but that cannot be said about our country, that is why personal checks should always be carried out, but we must also bear in mind that the risk associated with this business cannot be totally avoided,” he said.
He urged borrowers to always repay their loans on time in order to boost to their credit ratings.