New Bank Set to Commence Operations in Nigeria, Awaits CBN Approval

New Bank Set to Commence Operations in Nigeria, Awaits CBN Approval

  • The Nigerian Legion has hinted that it is awaiting the CBN's approval to establish a microfinance bank in the country
  • This is to enable ex-servicemen to obtain soft loans free from the typical restrictions usually faced in commercial banks
  • According to the chairman of the group, the seed money is necessary to solve the financial difficulty

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The Nigerian Legion has announced that it will establish a microfinance bank so its members can obtain soft loans free from the typical restrictions of commercial banks.

Another bank set to open, provide soft loan a week after new commercial bank commenced operation
The Nigerian Legion has announced that it will establish a microfinance bank in the country. Photo Credit: The Trusted Advisor
Source: Getty Images

Major General Abdul Malik Jibril, the chairman of the Nigerian Legion, made this announcement at a news conference in Abuja, according to a Daily Trust report.

Legit.ng earlier reported that another commercial bank began operation in Nigeria, appointing MD to rival Zenith, Access, and Others.

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Members send a request to CBN

The chairman claimed that the Nigerian Legion has requested permission from the Central Bank of Nigeria (CBN) to help its members.

He stated that the Nigerian Legion, founded in 1964, is entitled to funding under Section 11 of the Act establishing it. But no action has been taken, making funding extremely difficult for members.

The national chairman stated that the Act creating the Nigerian Legion has demonstrated the importance of finance by enabling the establishment of lawful companies that may generate revenue.

He said:

“There has been no take-off grant, so funding is required to be provided by way of annual budgetary provision so that there could be impact on the lives of military widows, orphans, retirees, and defendants.”

He urged other veteran associations not to encourage disunity.

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He also pointed out that the Nigerian Legion is the only legally recognized organization that manages former military members' welfare, advancement, and advocacy.

As such, seed money is necessary from the group to solve the financial difficulty.

He claimed that this would remove the need to ask people for money regularly.

CBN approves as Sterling Holdings launches new Islamic bank in 3 cities to rival Jaiz Bank, others

Legit.ng reported that Nigeria's newest ethical bank, The Alternative Bank, has debuted with a multi-city launch in three cities nationwide.

The bank launched simultaneously in Lagos, Abuja, and Kano, making it the first multi-city brand launch in Nigeria's history.

The Alternative Bank is a subsidiary of Sterling Financial Holdings.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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