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MICROFINANCE BANK INVESTMENT PROPOSAL

Feniran Consult 2012

Training, Management and Legal Consulting.

Microfinance bank. To operate in a state N100million is needed while a unit/local government MFB is N 20m. 7. 2. unless otherwise stated means a person or company licensed to carry on the business of providing financial services such as savings.16. 4. This is the background of the new national policy on Microfinance launched by the President in 2005. +234 (01) 8755 830. the main objective being the provision of needed financial services to the micro customers in particular and to Nigerians in general. Suite 3.com . Lagos. 5. business development and financial services. provision of needed infrastructural facilities and the promotion of small enterprises (SMEs). 3. Feniran Consult wish to submit hereby the proposal (the feasibility and business plan) for your consideration of the need to invest in a Microfinance Bank. 6. #P. loans. Oko-Oba IV Estate. Executive summary Overview of the OFIS & the National Policy On Microfinance Benefits of Microfinance Bank Product focus Acquisition Process Basic Organisation Structure About Us 1. Executive Summary In line with the new National Policy on Microfinance and the reforms on the Other Financial Institutions Sub-sector by Central Bank of Nigeria. and the enhancement of household income with its concomitant implication for national wealth creation. Abule Egba. The provision of microfinance services is therefore key to activating the latent capacity of the economically active poor for entrepreneurship. Ogba. +234(0) 803 217 5065 feniran@gmail. 2. N2b is required. self reliance. Capital Base For a Nationwide MFB.Content: 1.com www.feniran-consult@blogspot. Mojisola Street. domestic fund transfer.47. Overview of the OFIS Subsector & the National Policy on Microfinance The attainment of the new millennium development goals has put on the front burner to give focused emphasis on poverty reduction through the empowerment of people. #N0.

Oko-Oba IV Estate. the formal financial system provides services to about 35% of the economically active population while the remaining 65% are still excluded from access to financial services. moneylenders. Typical Cash flow Projections Break Even Point  The breakeven point is contingent upon the interest rate charged on transaction. that would encourage long-term. Lagos.  Create employment opportunities and increase the productivity of the poor particularly within its catchment area. Benefits of Microfinance Bank to the general public  Provide accessible consumer / retail banking services such as savings and demand deposit accounts. +234(0) 803 217 5065 feniran@gmail.The prolonged sub-optimal performance of existing community banks in Nigeria is common knowledge. All these led to establishment of Microfinance Bank in 2007. 3. The non-regulation of the activities of these institutions has serious implication for the Central Bank of Nigeria’s ability to exercise one aspect of its mandate of promoting monetary stability and a sound financial system. NGO-MFIs and all such other microfinance institutions hitherto in the informal sector. relatives and credit unions. systematic and focused participation of the poor in the socio-economic development and resource allocation process. Suite 3.  Provide veritable avenues for the administration of the micro credit programmes of government.  Enhance organized. sustainable entrepreneurial activities. In the end. thereby increasing their individual household income and uplifting their standard of living. funds management. Theses 65% are often served by the informal sector through NGO-MFIs. #N0. perversion of business model and other governance issues. #P. local money transfer and soft loans  Provide diversified. through specialized customer education and enlightenment. were expected to migrate/transform to Microfinance banks to be licensed by the Central Bank of Nigeria. +234 (01) 8755 830. Ogba. The factors responsible for this include weak institutional capacity. existing community banks. the community banks became another level of universal banks with smaller capital.com www. Under the new National Policy.16.47. Abule Egba. weak capital base. affordable and dependable financial services to the economically active poor. Studies show that in Nigeria.feniran-consult@blogspot. salary accounts. who desire to practice microfinance business in Nigeria.com . Mojisola Street. in timely and competitive manner.  Mobilize savings for intermediation. the amount invested and quality of management.

062b Dividend (proposed) 30% 656m 863m 1218m Forecast Dividend per share 2. Oko-Oba IV Estate.feniran-consult@blogspot.000.63 3.000. +234 (01) 8755 830.5 11. Medium. Suite 3.25 15. 2012 2013 2014 Profit before Taxations 6.000 8.25 b.000 7.com www.000 12. Commercial Bank-3years Post Breakeven with N 25bn paid up capital Year Year Year st Year ended 31 Dec.A. Mojisola Street.187b 2.500. Product Focus To achieve the above objectives. Lagos. However. Agriculture 2.000. 1.com . 2012 2013 2014 Profit before tax 3.000.000 Forecast Derived per share 7.45 4. Consumer / Corporate Finance The product offerings are as follows: 1.) 4. #N0. Abule Egba.125b 4. +234(0) 803 217 5065 feniran@gmail. Commerce 3.560b Profit after tax 2. breakeven point is usually between 6 to 12 months.500.000 10. Microfinance Bank-3years Post Breakeven with N 20m paid up capital Year Year Year st Year ended 31 Dec.enterprises (entrepreneurial support.427 6.000 Dividend (proposed) 30% 1.65 Microfinance bank has far more dividend per share as compared to commercial bank even with a capital investment that is 0. Financial Advisory Services: .47.08% of the commercial bank the microfinance returns is on the average 938% higher. business advisory and life after service business planning etc.877b 4. 4. the MFB shall develop product offerings along the following service lines unless otherwise restructured by the owners/stakeholders.87 Average: 3. returns on their deposit. a.000 Profit after Taxation 5.16.000.000 2. Ogba.225.000 3.500.Business development services #P.5 Average: 34. Apart from Dividend payable to shareholders individual customers with their various deposits or placement cannot get less than 15%P.  Since they offer mainly microcredit they cover their cost of transaction quickly as returns on micro businesses are generally higher with faster turnaround time.

Ogba.feniran-consult@blogspot. +234 (01) 8755 830. In addition. Mojisola Street. Abule Egba. Lagos. This shall be in line with CBN approved guidelines. The staff of the bank along the mentioned functional business units for the first year of operation is given below. 4. Fin & Admin. O. D. and other team for effective management. Oko-Oba IV Estate. +234(0) 803 217 5065 feniran@gmail.16.Debenture Service as Approved Lending: Group / Solidarity based lending model (not necessarily Asset .com www.Collaterised Financing) for micro-credits Equipment Leasing Project Finance Hire Purchase Treasury / Deposit Liability Management: -Guarantees -Money Market and Funds Management E-Banking: -Electronic transfer -Mobile money The product offering listed above is not exhaustive and products shall be developed to address the specific requirements of particular customer or group.47.Feasibility Analysis . 3.com . the bank will require for the first year of operation 7 officers categorized as follows: #P. as market opportunities permit. Credit & Marketing (c) 1 Cash officer (d) 1 Cashier (e) 1 Customer service Based on the proposed staffing. 9.Project Finance – Consultancy . (a) COO (b) 3 H.2. . #N0. Suite 3. Basic Organization Structure The bank will operate 3 Group levels.s – Opps/Branch. The structure is designed to permit proper segregation of duties. Acquisition/Investment Process: 2) This can be done via Memorandum of Understanding (MOU) between the old and new investors after carrying out due-diligence exercise on the bank’s financials. the MFB’s product focus can be reviewed from time and expanded in line with changes in the financial service industry.

Business Support. Integrity. FENIRAN CONSULT is a Nigeria registered consulting firm with special focus on Training. Management/administration of clients’ existing support staff d. Searches.). Lagos. Abule Egba. Business Support and Advisory Services: We are proficient in Product Development. Litigation Advisory Services. #N0. adding value to our clients and other stakeholders in an efficient. Suite 3.47.16. delivering Training. Relationship Structuring. Vision: To be a leading Multidisciplinary African Consulting Firm providing innovative bespoke solutions and services. Property and General Legal Documentation. Business take-off planning and implementation #P. About Us. Consulting and related services solutions.Level Position Number Executive Management CEO & Group Heads 4 Officers Management 3 Total 7 This staffing plan excludes support staff such as driver and security officers. Our services also include. +234 (01) 8755 830. Mission: To be a service provider of choice. Scenario Planning. We have experience in International Franchise Arrangements. Management and Legal Consulting. Oko-Oba IV Estate. Technology Transfer and Guarantee Procurement. Core Values Customer Focus. Corporate Affairs Issues (Incorporation.com .com www. Recruitment and management of outsourced staff c.feniran-consult@blogspot. Our Offerings Legal Consulting: Our legal services include Advisory Services. Business/Marketing Strategy advisory services. Innovation and Service Excellence. and Trade Marks and Patents etc. cost effective and reliable manner. Relationship Structuring. +234(0) 803 217 5065 feniran@gmail. a. Ogba. 12. Mojisola Street.

feniran-consult@blogspot. See the brief profile of some of our associates. We harness the benefits of our varied industry/professional exposure and training to deliver holistic and practical solutions to meet the needs of our esteemed clientele. Background Checks and related advisory services. Complete Designs and Engineering Services. Blooms Soft Furnishings. Public Speaking.47. Communication and Customer Service training amongst others. Pharmaceutical. Delsan Engineering Services. Suite 3. Olutech Aluminium Limited etc. MTNN Employees Multipurpose Cooperative Society (MEMCOS). Strategy. Recruitment service. Oko-Oba IV Estate.com . Personal Effectiveness. Marketing. +234 (01) 8755 830. 4. Abule Egba. Leadway -Pensure PFA.Management Consulting and Training: We undertake HR Planning. Our Clients: Our clients include. Marketing. Ogba. 2. Human Resources Administration and Legal environment of many top-class organizations in addition to management education at major centres of excellence within and outside Nigeria. #N0. Relationship is ongoing and engaging thereby affording us the opportunity to design and deliver services tailored towards enhancing the attainment of our client’s strategic goals. Structure/conceptualise initial start-up/take off structure and operational model for successful realization of your set objective. Engineering. Specific Services Offered with Respect to this Proposal: 1..com www. 3. Sales. Sales. Medical. Insurance. Operations Management. Provide the required secretariat and process follow-up and represent your interest from the beginning till completion of the process. business and operational plans #P. Bible Society of Nigeria. Frontier Logistics and Cargo Handlers Limited .16. Lagos. Team Building. Mojisola Street. Our associates have their background in Financial Services. We have experience in Leadership. We support the management of significant Organizational Change. Prepare and finalise with regulators on your behalf all documentations. Training and Legal Advisory Services. To assist you in midwifing the establishment of microfinance bank suitable for the attainment of your set objectives. Our Value Proposition: We offer a unique one stop portfolio of Management Consulting. +234(0) 803 217 5065 feniran@gmail. Unilever Nigeria Plc. Naija Auto Trader And Investment Limited. Mother and Child Hospitals Limited.

Before rising to the position of Company Secretary and Legal Adviser he had been saddled with managing major multinational. OLOJO Esq.16.5. BRIEF PROFILE OF KEY ASSOCIATES: OLOJO. OLUYOMI MICHAEL. insurance procurement and claims administration. product development. Canteen. Undertake (subject to cost defrayment) all related administrative and legal services Our Approach: It is our belief that no two clients are the same even if in the same industry and facing the same challenges. We do not vend or amplify buzzwords and management fads and our plans/solutions are developed with the client in view in order to make them executable. Mojisola Street. Ogba. Business Manager and Academia. A career rich in Human Resources Management as a business. O. pensions. he joined Servtrust Limited a major Outsourcing and Security Service Company where he spent more than five years becoming actively involved in project management. Suite 3.com . #P. Oko-Oba IV Estate. multi-location contracts including Nigeria Breweries and Diageo (Guinness) Nigeria to name a few. Senior Consultant/CEO. +234(0) 803 217 5065 feniran@gmail. Release to your control subject to agreement an experienced top rated professionally active Microfinance banker to lead the initial take – off 7. Security. Produce business plan 6.M. Called–to-Bar on 12th December 1990.47. We shall be grateful if granted the opportunity to be of service to you. Abule Egba.feniran-consult@blogspot. #N0. Legal Practitioner. Pensions. +234 (01) 8755 830.com www. Undertake recruitment and training off all staff 8. Each client is unique to us and we do not pretend to have prepackaged strategies or solutions. During his brief stay at Leventis he set up the Medical Insurance. He was the pioneer Legal Secretary to Irrua Federal Medical Centre in Edo State of Nigeria. Yomi Olojo has had a varied work experience from brief stints in Citizens Rights protection as a Youth Corper. Lagos. A 1989 graduate of Law from Obafemi Awolowo University. It was from Servtrust Limited that he joined Leventis Snacks Industries Limited as pioneer Admin and Human Resources manager. Civil Servant.

com . Nicknamed Brownie for his ability to earn valuable points in-class before the end of each course he was also the Elected Secretary General of EMBA 12. Chartered Bank Plc now Stambic/IBTC and Magnum Trust Bank Plc now Sterling Bank) spans over 16 years. As his post EMBA Internship. Business Development and Mortgages.47. in Barcelona.Sc) Degree in Business Administration with specialization in General Management from University of Lagos and also an MBA Degree in Banking and Finance from University of Nigeria Nsukka.com www. Yomi Olojo secured admission at the prestigious Lagos Business School for Executive Masters of Business Administration (EMBA). marketing. In his early fourties. reputation management. #N0. Lucky developed the Head Office branch of the institution as pioneer branch manager and rose to the position of the Group Head. Lagos. Mojisola Street. this father of three lovely girls is the CEO/Senior Consultant at FENIRAN CONSULT a Training.) and Commercial bank (Access Bank Plc. Maevis was a finishing school for Yomi in deals structuring. Abule Egba. +234 (01) 8755 830. Teacher and Management Consultant. Suite 3. He joined his class in attending the special one week training on Entrepreneurship and Competitive Strategy at IESE Business School. Administrator. Ologbo holds a Masters of Science (M. A banker to the core. Marketing. He was also involved in NAFDAC approval process for the products of the company. Institute of Personnel Management of Nigeria and chartered Institute of Stockbrokers of Nigeria. At Safetrust (now owned by Sterling Bank). Lucky has just passed the final stage of the professional examination (Microfinance Certification Programme) conducted by the Chartered Institute of Bankers and Central Bank of Nigeria for microfinance practitioner. +234(0) 803 217 5065 feniran@gmail. OLOGBO Lucky Ologbo is a Banker. project proposal drafting. Human Resource Management and Business Law. Ethics. In his thirst to acquire world class management training. Management and Legal Consulting Firm. negotiation and training. Ogba.feniran-consult@blogspot.16. #P. Oko-Oba IV Estate. The rigorous case study programme revealed his passion for and brilliance in Strategy.Community and Police Relations system. married to Bolaji a former banker and business associate. A student member of the Chartered Institute of Bankers of Nigeria. He also holds a full membership status (MNIM) of Nigerian Institute of Management. he joined Maevis Limited (Africa’s leading Airport Automation and Management Company) as Executive Assistant to the Chief Executive Officer. presentations. Spain. LUCKY O. his banking career which cut across Mortgage Finance Institution (Safetrust Savings & Loans Ltd.

At the head office of the same bank (Chartered Bank) he was given the opportunity of been a member of the Concessionary Finance Unit (World Bank Assisted Projects – SME. Obilade is a graduate member of Chartered Institute of Personal Management Nigeria and Licentiate Chartered Institute of Personal Development. Development and Talent Management. United Kingdom where he majored in HR Strategy.A Graduate of top rated Durham Business School. +234(0) 803 217 5065 feniran@gmail.com . He also obtained a Masters Degree in Political Science at the same University (International Relations bias) He is an M. Afolabi Obilade attended the Prestigious Government College. +234 (01) 8755 830. he participated in setting up of four branches located on Allen Avenue – Ikeja. #N0. Awolowo Road .B. UK. Ogba.feniran-consult@blogspot. Oko-Oba IV Estate. He worked with the defunct Center for Democratic Studies BWARI Abuja (The Presidency) as a Research Officer/ Assistant. he has acquired experience over the years in Organizational Development and Office Management with extensive knowledge in Training. Mojisola Street. Mr. AFOLABI OBILADE. Ibadan and studied Political Science at the University of Ibadan for a First Degree. the Head of Credit & Marketing – managing other financial institutions. Mr.16. He later worked with the Institute Of Chartered Accountants Of Nigeria and rose to the Senior Manager Administration A Senior Human Resources Manager with over 12yrs experience in Human Resources field. Lafiaji Lagos before joining Royal Trust Community Bank Ltd. (Community Banks & Mortgage Institutions) and Medium Corporates.com www. Obilade started his career as an Administrative Officer with the Former Directorate for Social Mobilization Bendel State. as the pioneer Managing Director.In Chartered Bank. IDF etc. Lucky has just been recently inducted by the Chartered Institute of Bankers of Nigeria as a Certified Microfinance Bank Practitioner of the Institute and now wears the title MCIB. #P.on Lagos Island. Mr. Lagos. MR.47. Oke-Arin and Nnamdi Azikwe . Suite 3.) He had a brief stay at Access Bank where he functioned very well at their Commercial Department before joining Magnum Trust Bank Plc. Abule Egba.He was the Manager in charge of Magnum Trust Bank Plc Marina (Head Office) branch and Lewis Street branch. He was at various points in times.Ikoyi. Lucky Ologbo is a member of Ikoyi Club Lagos and happily married with children. Mr.

16. He has extensive practical experience in Branch Management. Victoria Island.com www. Obilade is passionate about driving efficiency and aligning HR to business strategy. Dotun is a Senior Management staff of a major Nigerian Bank. +234(0) 803 217 5065 feniran@gmail. #N0. He has been involved in successful start up and turn-around of branches. She completed her Higher National Diploma in Mass Communication at Ogun State Polytechnic. Bolaji worked at Waterstone Communications Limited as a Media Executive before joining Chevron Nigeria Limited in 2000 as a Community Relations Officer. His core competences include credit analysis. Mojisola Street. Product Development and Sales in Financial Services environment. Ogba. Abule Egba. He is currently on a PHD research on Organisational Development at Bradford University UK and a Consultant with the World Bank in Nigeria. Credit and Risk Management. BOLAJI MARIAM OLOJO Bolaji started her primary education at the prestigious ADRAO International.Mr. international and retail banking functions in professional banking environments in Nigeria. She later moved to Punch Nigeria Limited on completion of her National Service as an advert executive. A graduate of Agricultural Economics from University of Ibadan. Oko-Oba IV Estate. sales planning and execution and people management. +234 (01) 8755 830.feniran-consult@blogspot. Trade Finance.com . Suite 3. Lagos before proceeding to Shepherdhill Girls High School.47. In addition to host community activities she was a regular contributor to Chevron Texaco News. units and department at various locations in the country. In 2002 she joined the Corporate Affairs department of Oceanic Bank International Plc where she was for 5 years. Lagos. ADEDOTUN IFEBOGUN Dotun is a banker of 19 years post qualification experience spanning commercial. (Moshood Abiola Polytechnic) Abeokuta. Associate Chartered Accountant and Executive MBA holder from Lagos Business School. #P.

Winning Attitude and Poise before moving to Retail Banking department as Pionner Head of Marketing at Iju Business Office of the bank before her exit from the banking sector in 2009.16. +234 (01) 8755 830.47. Ogba. Bolaji is currently the head of Marketing and Corporate Services at FENIRAN CONSULT. Suite 3.feniran-consult@blogspot.com www.Bolaji was an active member of the highly successful Initial Public Offer campaign team of the bank in addition to coordinating many Public Relations campaigns and events management responsibilities. Abule Egba. #P. CSR. She attended several courses including Communications. BJ as she was fondly called led many initiatives including Abattoir and Fishfeed Market Associations. #N0. International Trade. Mojisola Street. Lagos. Oko-Oba IV Estate. Private School Account programmes and Small/Medium Size Manufacturing Industry Account.com . Branding. +234(0) 803 217 5065 feniran@gmail. Writing.