Save our soul, Kwara Microfinance Banks cry out to Gov AbdulRazaq over ban on Civil Servants from banking with them


The Alhaji Ahmad Baba Suleiman led, National Association of Microfinance Banks, Kwara state chapter has made a passionate appeal Governor AbdulRahman AbdulRazaq of Kwara state to rescind his decision to take salaries of the civil servants in the state away from MicroFinance Banks in the state.

Suleiman who made his appeal while addressing journalists on Wednesday at the NUJ Press Centre in Ilorin said that the policy of moving civil servants accounts domiciled with Micro finance banks to commercial banks  came as a rude shock in that the affected institutions were not informed before such a drastic action was announced.

The Chairman of Microfinance institutions in Kwara stated that there are civil servants who are still servicing a cumulative loan of one billion naira facilities granted to them by the 28 Microfinance banks in the state with about 2,000 staff and 13,438 civil servants and pensioners presently banking with 15 Microfinance banks and  that this policy will adversely affect loan recovery efforts by while most of such loans could go bad.

He said if government continues with the policy to move civil servants to commercial banks, it is likely to cause loss of jobs if the banks are insolvent, thereby increasing unemployment rate in the state.

Alhaji Baba Suleiman pleaded that holding a press briefing was not to malign or embarrass government or any of its agencies but a subtle way of seeking partnership for mutually beneficial relationship with government on how to improve the economy of the state to further create employment opportunities.

Responding to questions from Journalists,  Alhaji Baba Suleiman reiterated that the Association had written to the effect of this development and made concerted efforts to meet top government officials, all of which has not been responded to nor positive action noticed on the side of government.

He added that on the contrary, while his association was working out modalities for a relationship, between government and the Association, a circular was issued that civil servants still operating with Microfinance banks would not be paid February salary.

The banker’s association boss  pleaded for a three months grace from March 2020 to enable members of his association tidy up relationship with their civil servant customers, perfect their documents with the switching companies which stands at 70 percent completion to enable the government pay directly to civil servants’ accounts and eliminate the ghost workers’ syndrome.

He corrected the erroneous impression that most customers of microfinance banks have no Bank Verification Number, BVN stressing that all their customers have BVN, as new accounts are opened.

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