Nigeria now has a microfinance bank for education, the first in the history of the country. There are 898 licensed MFBs in Nigeria and only Edfin Microfinance Bank has been set up for the purpose of funding education for Nigerians.
The specialised bank is aimed at school owners, teachers, and parents who have their children in school or want to enroll their children in school. While speaking about Edfin MfB, the Managing Director and Chief Executive Officer, Mrs. Bunmi Lawson said 80 per cent of Nigerians has a stake in the education sector directly or indirectly.
“Edfin is the first specialized education finance bank in Nigeria. We finance the education eco-system, by that, we mean people who own schools, teachers or principals. We give financial service and value-added services so that schools can grow.
“80 percent of Nigerians have a stake in education, it could be that you run a school or you have a child in school, so we hope that if everybody is educated we would realize human potential.
“If you fund education, you are touching all sectors of the economy, Two-thirds of Nigerians send their children to private schools. The public school system is inadequate to meet the growing population so the private sector has a role to play to ensure that everybody is educated.”
Why this matter: Edfin Microfinance Bank will drive up the level of education among all societal classes, giving each child a chance to experience formal education with proper funding. Lack of funds has always denied children of proper education and sometimes, no education at all. The bank will, therefore, broaden access to funds to keep children at school and increases the education sector’s contribution to the gross domestic product of Nigeria.
What you need to know: Nigeria is among the twelve countries that were picked for education financing by Graymatters Capital which is also a major shareholder in Edfin Microfinance Bank. According to the Chairman of the bank’s Board of Directors, Paul Dileo, Lagos was chosen as the top choice to kickstart the initiative because it met the requirements of the core investor.
About Gray Matters Capital: Gray Matters Capital operates as an investment company. It invests in energy sectors, educational institutes, and large scale enterprises. Gray Matters Capital conducts its business in the United States.
Source: Nigeria gets its first microfinance bank for education
By Fakoyejo Olalekan
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