Stories by Amaka Ifeakandu
Lagos
Some operators of microfinance banks in Lagos yesterday said business did not boom as usual as sellers and buyers withdrew in doors days to Presidential/National Assembly polls fearing that violence would break out.
According to them, the situation affected loan recovery rate of microfinance banks.
Investigations revealed that some traders who collected loans from banks could not meet installment repayments and that Portfolio at Risk (PAR) of the banks had shot up.
The operators said that this was because some traders in Lagos and other parts of the country closed shops due to the uncertainties over the outcome of the polls.
Confirming this, the Managing Director of Bosak Microfinance Bank, Lagos, Mr Kola Bello, said the uncertainties made traders not to trade as usual.
“Anytime our recovery team goes out for loan recovery, they always meet our clients’ shops locked up; this has shot up the PAR of the bank.
“Uncertainties of polls affected most of the entrepreneurs we gave loans; they put their shops under locks and keys.
“Some of them that even opened shops closed early over fear of the unknown
