Experts seek Kefas intervention to revive Taraba microfinance Bank

Eleojo Samuel Jalingo

Financial experts in Taraba State, are seeking governor Agbu Kefas intervention to revive the liquidated Taraba State Microfinance Bank.

Investigation by our reporter shows that the circumstances that led to the closure of the bank was faulty and politically motivated as the last administration failed to adhere to the report submitted by a committee set up to investigate the activities of the financial institution and also a court order stopping the Central Bank of Nigeria (CBN) from liquidating the bank.

National update gathered that in May 2023 the CBN liquidated the Microfinance Bank and directed the Nigeria Deposit Insurance company (NNDIC) to sell off the assets of the bank.

But in swift reaction the Board of the bank approached the Federal High court Jalingo and also wrote the CBN in a letter dated 10th June 2023 challenging its decision.

These two efforts yielded positive results as the Federal High Court sitting in Jalingo gave CBN an interim injunction stopping the liquidation exercise pending the suit before it.

Also, the letter written by the board to the Central Bank of Nigeria was honoured as the Apex bank, in a letter dated 11th July 2023 directed the bank to recapitalised to the minimum capital requirement of N1billion to enable it operate a statewide microfinance bank

Also because the last financial statement submitted by the bank before the liquidation showed a net loss of Six Hundred and Ninety Million Two Hundred and Ninety thousand Naira (N690,290,000).

The apex bank requested the micro bank to recapitalizated One Billion, Six Hundred and Ninety Million, Two Hundred and Ninety Thousand.(N 1,690,290,000) to cover the minimum recapitalization requirement and the loss in the books of the bank.

Our investigation further reveals that the bank was given an initial window of Ten working days and weeks with another additional window of two weeks, however the first and second window elapsed without the state government taking advantage of it.

Financial experts in the state have continued to express concerns over the development, saying the lack of state owned Microfinance bank is causing the state to lose Billions of Naira.

Speaking to our correspondent the former Managing Director of the defunct bank, Nasiru Baba, said apart from denying rural communities in the state of assessing financial services the state is losing a lot of financial grants.

He said within this period, the CBN under the administration of President Bola Tinuba has given out billions of naira to support Micro funding through various Micro Finance Bank across the country, particularly to alleviate the suffering in the country, but Taraba State has not been benefiting from any of such intervention due to lack of state own Micro Finance Bank.

Mr. Baba then appealed to Governor Kefas, to intervene in saving the bank as CBN is willing to restore the license of the bank if the basic requirements are met.

Olayinka Gabriel, a Chartered Accountants and CEO Taraba Business School, said if the government is serious about resolving the crisis within the bank it can be resolved within 7 days.

“I have studied different reports concerning the bank and I have come to the conclusion that it is the political will of the Kefas led administration that can resolve the crisis of the bank.” He said

He said the state government needs to sit down with the dissolved board members and resolve all legal tussles.

According to him the bank currently has 18 different cases, two at the Supreme court, 6 at both Jalingo and Abuja federal High Court, and others at upper area court and Magistrate courts.

He said the withdrawal of these cases by both Taraba Investment and Properties Company and the board members of the bank will clear the way for the bank to recapitalise and explore its strategy.

Another Expert Maurice Agor who is the chairman of Taraba State chapter of the Institute of Chartered Accountants of Nigeria (ICAN), also said under the current situation the bank only needs a political solution to be revived.

“All the parties involved in the various legal tussles must be prepared to make sacrifices for the interest of the bank and its growth.

He said the CBN will not recognize any decision outside the one taken by the board, the board need to be reinstate, the government can ask the board members to resign with a promise of giving them another position into either board or parastatal or other political appointment, this way, a new board can be constituted with forward thinking individual that can move the bank forward.

He said anything outside a political solution will not solve the current problem of the bank.