Go to Yunus.....thou Unlearned

Go to Yunus, O thou unlearned…...........

Nobel prizes are never given to mediocre or average minded people with poor knowledge of their profession but a global award with a bogus financial reward bestowed to individuals with intelligent abilities, heartbreaking inventions and ingenuity. That explains why our only true Nigerian Nobel prize winner, Wole Soyinka remains cherished legend, cult hero and enduring legacy whose opinions and media chats are reverred by Nigerians. Muhammad Yunus is one of the few greats in a world with countless beings who has distinguished himself since the Nobel prize was instituted in 1901.According to Wikipedia, Professor Muhammad Yunus and his bank were jointly awarded the Nobel Peace Prize for their efforts to create economic and social development from below cadre. Professor Muhammad Yunus received the prestigious prize for peace because it is highly evident that the presence of poverty and hunger is a remote invitation to chaos and crime. Having authored a classic called Banker to the Poor; he also founded the first Bangladesh microfinance bank titled Grameen bank. He defied all odds of corporate banking with a traditional practice of giving credit facilities to high net-worth individuals who have strong collateral. He made his loan available only to the poor whose collateral was only his character and references of his fellow colleagues. It was a masterstroke solution that gradually allowed individual with dimmed hope of accessing loans to get liquid cash to create businesses and drive turnover. This accounted for the living of many and created a society gradually bridging the gap of poverty in Bangladesh.
The boom in the Nigerian banking circles in the past years has definitely been a great achievement over the last few years. It has not only rebounded the stock exchange, created employment, increased branch expansion but its has made banks to stop being financial store houses with ugly appeal. Banks have turned to interactive economic centers where customer service is of high importance. Nigerian banks are locked in a race of increasing their liability through their proactive staff. Businesses are being supported through available credit facilities and this has boosted the Nigerian economic growth index. The Nigerian banks are the key focal point of economic growth and societal empowerment. The earlier the banking industry, a key segment of the private sector sees itself as the engine room of economic growth, the more blossoming and prosperous society will evolve. It is therefore painful to see when you walk briskly along our streets to see a plethora of beggars, an army of employed youths with potent ideas and a high level of failure among small and medium enterprises. This is in antithesis with our banks are presently developing to, causing stir in the global market with exotic adverts run on global media outfit.
People with ideas and skills to run small businesses are numerous and are dotting our streets seeking self expression. They make approaches to obtain facilities but this has hit a brick wall as they are considered to be high credit risk individuals. They possess no security support such as mortgage properties, shares in blue chip companies and do not earn fat salaries. This is a direct wastage of human capital as most of these people could channel their energies into self destruct activities such as armed robbery, fraud, militancy,
cybercrime and so on.
The key strategy in eliminating poverty and hunger is to develop microfinance banks in line with the initiative of legendary Muhammad Yunus. The microfinance banking had been replicated all over the world of which Nigeria is no exception. Since the inception of cooperative societies and the establishment of community banks, there have been strategies aimed at aggregating the lower cadre into groups where they can have access to soft loans. The restructured Microfinance banks are now dotting our streets and key strategies have to be developed to ensure huge impact on the populace. According to a THIS DAY report, 79% of Nigerians are still unbanked and do not have enough security to have loan. This is a challenge to the banking industry if poverty alleviation will be achieved as prescribed by the Millennium Development Goals.
The key fact is that are present Microfinance banks doing enough or capacitated to support low volume business? Are commercial banks fully involved in the funding and supporting the microfinance banks? Are the microfinance loans interests not too high to ensure profitability of small and medium scale business? Where the SME funds are placed in Nigerian banks and why does it remain a big deal to access them? These are critical questions begging for quick answers if the growing Nigerian economy is not deceptive statistical analysis on CEO chart boards. Right economic indices should directly impact on the micro-segment of the society and the prices of fish in the Oba market should be a key factor. The Microfinance banks need adequate support from the commercial banks and also through favorable government policies. The commercial banks should have subsidiaries that are microfinance banks with a mandate to ensure easy access to loans. This will create capacity within the Nigerian economy for people to start business, create wealth and provide employment. This will ensure security of lives and property with people putting their energies at productive ventures.
Professor Muhammad Yunus visited Nigeria in mid 2008 to give proactive solution for microfinance initiative but all the media limelight have to be transformed to reality. Models that will help in solving the poverty quagmire especially in the rural areas should be developed. Farmers, unemployed graduates, artisans, traders, food merchants and so on in that class should be empowered and all efforts should be used to avoid such schemes from being politicized. This is exactly when our economy can develop and we can adequately think of actualization the Millennium Development goals through financially empowered population. Our Vision 2020 is under threat if the gap between the have and the have-nots is not reduced and the key strategy is the Microfinance banks enabled to do much for the society. Loans could be given to large cooperative societies at productive interest rates and also for graduates who are unemployed for a certain period who could be guaranteed by relatives. We will do this for a prosperous society that’s secure and guarantees the fulfillment of the first millennium development goal- To reduce extreme poverty and hunger. Let go and learn the Professor Yunus model and apply its effectively to our Nigerian society