WHY I DECIDED TO OPEN “SOCIETE GAMSA” MFB IN NIGERIA

– Dr. Lawal Mohammed Ali

Societe Gamsa Microfinance bank started in Benin republic more than five years ago with excellent services, which include money transfer, especially for Nigerian business men/women in and outside Benin Republic. After many years of operation in Europe and other African countries, Societe Gamsa MFB, under the leadership of Dr. Lawal Mohammed Ali is set to storm the Nigerian financial market and contribute its quota to the development of the sector.

In a chat with A&B, Ali, who is the bank managing director of the organisation, revealed what it takes to acquire licenses in Nigeria, why he has decided to set up the bank.

With the challenges facing MFBs in the country now, do you think this is the right time to extend your business to Nigeria

Well, I am not seeing all these challenges, but ‘am set to make a difference with the experience we’ve acquired in other countries. It’s unfortunate that in Nigeria, loans are being giving out on relationship basis and those who don’t have are made to look for huge collateral before such can be granted. Unlike Nigeria, where Microfinance Banks give money to artisans or market women to establish businesses and start paying back with outrageous interests, Microfinance Banks in Cotonou, Benin Republic give money out to civil servants mostly. We give money to them to establish their relatives in businesses, and the borrower will start paying from his/her salary even before the money gets to him. The reason for this is to secure the person after leaving the job.

I heard that microfinance banks are closing down in Nigeria due to miss-management of funds by the banks’ executives. This is the real time MFB operators should tell Nigerians why they should bank with them as commercial banks are facing crisis. When I started in Benin Republic, the first challenge I faced was the fact that I am a Nigerian. We have had bad image in Benin Republic. What helped my speedy registration is the fact that I had worked for 10 years with the Presidency of Benin Republic as a protocol officer during the time of President Matthew Kereku. Immediately I found out that banks in Benin Republic were having issues with Nigerians in terms of money transactions, I quickly set up my own and Nigerians doing business here feel comfortable with me who is their brother. My brother, this is the right time for businessmen in the banking industry to get the hearts of customers by differentiating himself from people who collect customers money and run away or those who find it difficult to give customers their money when they need it.

Why did you choose Benin Republic and not Nigeria then and what is it like getting a licence in Nigeria

Yeah, I chose Benin Republic after a survey about Nigerians who move to Benin Republic daily. There are many cases of Nigerians who are attacked by armed robbers, and they are sometimes killed on their way to this country to transact businesses or buy cars. I decided to establish a medium for Nigerians to transfer money from Nigeria to Benin Republic, which was what led to the birth of ‘Societe Gamsa.’ in Benin Republic. I have branches in places like Madrid, Valencia and United Kingdom. Acquiring license to operate MFB here is not too hard based on the fact that I operate in other countries. What really became an issue is the money the Central Bank requested for which is on the high side compared to other developed African countries. According to them, this was for security reason, which is good, but if Nigerian microfinance banks had deposited such amount with them before operating, I think we won’t be experiencing this closure everywhere even if there are, customers’ money can be returned by CBN without delay.

What do customers stand to gain now that you are in Nigeria

Customers will experience something different from what they are used to in the microfinance banking sector. We are going to concentrate on giving support to small scale businesses and empower the less privileged without discriminating. We are going to encourage our small scale business people to learn how to save, even if it’s small. At the end of a particular period, we will give triple of what the person had saved and monitor it as he/she will invest it on his/her business. We won’t just give without monitoring. paying back will be convenient to borrowers and it won’t be with high interest rate. In giving support to the less privileged, we are set to establish whoever has a profession and educate those who don’t have about what they are ready to learn. Microfinance banking will be a very different ball game with Societe Gamsa. We are stating from Kwara State and then extend to Lagos State.

Why Kwara State instead of Lagos, where businesses are thriving

There is a secret behind that, just wait and see.(laugh). Lagos may be congested with different microfinance bank, but that won’t be an issue with us whenever we are set to establish ours. Really, why I chose Kwara State first is because I want people who are outside Lagos to benefit from what we have to offer first.

Where do you want to see ‘Societe Gamsa” in few years to come

Well, in America, I mean in every part of the world, doing trustworthy business as usual. Moreover, we want more Nigerians to know that we are the only accredited MFB operating by a Nigerian in Benin Republic and we are accredited in Nigeria too. I promise you that within a twinkle of an eye, we will get to Lagos to do good business. We have people who have practised the banking profession both in Nigeria and outside as part of our team.