REVIVING THE URHOBO MICRO FINANCE BANK PROJECT: Matters Arising

The immediate past executive of Urhobo Progress Union led by Olorogun Moses Taiga’s tenure have come and gone but certain issues left behind by his group would need to be reconsider to see how effectively people will be imparted positively or negatively. Before they left office at the end of their tenure one issue that was pregnant is the establishment of Urhobo or Unity Micro Finance Bank. When the news came on air, the people celebrated it knowing the contribution it will bring to the entire Urhobo Land. To let the people, know how serious they are, they call for fund deposit and by the time they are exiting several million naira may have been raised knowing how the Urhobo people feel when they are call for a genuine issue like this. The inability of the executive to obtain a banking license stalled the establishment of the bank which would have been historical to the teaming populace of the Urhobo Nation. I sincerely commend the former President General and his executive for going far with this project. Since government is a continuation as I always say, I have not heard anything from the present executive led by Barrister Ese Gam on the way forward on how to accomplish this project.

With twenty-four kingdoms of different ethnic nationality within the Urhobo Land, to say this project is needed as it will add to the people’s lives is an understatement. The first step towards the realization of the objective is for the executive to appoint a committee of experts to liaise with several personalities within the banking industry and especially the Central Bank of Nigeria to grant it an operational license without delay having met the following criteria: Register your business with the Corporate Affairs Commission (CAC); Prepare strong governance documents and a business plan; Apply to the CBN for the right licence (microfinance, finance company, or payment services); Put your compliance systems (like AML/KYC and IT controls) in place; and Secure the CBN’s Approval-in-Principle, meet any further requirements, then get your final licence. The Urhobo Nation has what it takes to meet all these due to retired and serving bankers that abound within the ethnic nationality. Without debate the headquarter of the bank should be in Warri, Ughelli, Sapele, Effurun, Orerokpe while branches should be spread all over the place including Lagos, Abuja and others.

On minimum capital & financial requirements capital thresholds have changed historically and vary by licence: For microfinance banks (MFB), the capital you’ll need depends on your chosen tier: ₦20 million for unit, ₦100 million for state, and ₦2 billion for national licenses are common figures. Finance companies have lower capital requirements than banks, but you’ll still need to follow the CBN’s prudential guidelines. Payment service providers (like PSPs and PSSPs) have different capital requirements depending on exactly what you want to do. These have changed recently, so double-check the latest CBN guidelines to make sure you’ve budgeted enough. The list of required documents will depend on your license, but here’s what you’ll almost certainly need: CAC certificate of incorporation, Memorandum & Articles, Form of Allotment; Detailed business plan & financial projections; Board and management CVs, passports/IDs, police good conduct where applicable, and fit-and-proper forms; Evidence of paid-up capital / bank statements showing capital injection; AML/CFT policy, KYC procedure, IT security policy, data protection compliance (NDPR), internal controls/policies; For PSP/PSSP: software architecture, API specifications, PCI/DSS compliance plan (if card acceptance) and risk management.

Once this is achieved the bank must have a strong internal control system with trained auditors so that the objective will not be lost. With complete documentation, the approval and granting of licence should be expect 3–12 months, but bank-level or national authorizations can take longer. The President General and his team should now go to the drawing board and ensure the bank kicks off before half of the year. The institution is going to aid small micro trading by individuals and others in terms of depositing and obtaining soft loans. Government should not have a hand in the business rather it should be for the Urhobo Nation purely to avoid looting it before day break. Banks such as Bank of the North, National Bank and many others owned or partly owned by governments have all gone done the drain while those who looted it are flying in private jets all over the place. This is what all sons and daughters of Urhobo Nation should guide against once its start operational.

Joseph Esivwenughwu is a Fellow of the Institute of Chartered Accountants of Nigeria.