Institutional Background

The origins of Ekondo Microfinance Bank (EMFB) go back to 1997, when an experienced banker, the current Chairman of the BoD and majority shareholder, Mr. Asuquo Ekpenyong, promoted the creation of a Community Bank in Calabar (Cross River State), called Ekondo, dedicated to attend the lowest segments of the population with financial services, which were not considered by commercial banks.

Community Banks in Nigeria, according to the Law for Community Bank introduced in 1995, used to be regulated and supervised by the National Board for Community Banks (independent body from the Central Bank of Nigeria) until 2001, when the Central Bank of Nigeria became the regulator and supervisor also for the Community Banks.

After the introduction of a new regulatory framework for microfinance in December 2005, and the definition of the Microfinance Bank status, all Community Banks have been required to convert into Microfinance Bank. Ekondo obtained the final license in February 2007, and it was the first Community Bank in Nigeria to transform into a microfinance bank. As a microfinance bank, Ekondo reports to the Central Bank of Nigeria (CBN) and to the Nigerian Deposit Insurance Cooperation (NDIC). EMFB is part of a group of 6 companies, called Davandy Group, also founded and owned (majority shareholder of each of them) by Mr. Ekpenyong. Ekondo Microfinance Bank is a subsidiary of the Davandy Group, which comprises of Davandy Finance and Securities, Channel View Hotels and a Bureau De Change.

Prime Focus

The new Ekondo Bank is poised to carve a niche for itself in the financial market by providing diversified, affordable and dependable financial services and leading and excelling in the provision of creative and innovative banking products. Its mode of operation equally guarantees a steady growth in investors’ funds.

Licensed by the Central Bank of Nigeria to provide complete banking and related services to its clients, it has been part of her ambition to emerge as a high profile player in the banking sector of the economy. With a modest beginning in 1997 Ekondo Community Bank became:

  • The first Community Bank to break even within its first year of operation
  • The only Community Bank in the Country to write off its preoperational expenses within two financial years
  • The only Community bank in Cross River State to be appointed by the Federal Government to manage FEAP loan scheme
  • The only community Bank with exceptionally intensive but intimidating Management profile

Strategic Objectives

In 2007 three (3) new branches (beside the Head Office branch) and three (3) cash centers have been activated. EMFB is financing its assets with capital and deposits, and it has not yet accessed to external borrowings. The only external funds received and managed are those proceeding from the Federal Government, within the so called National Poverty Alleviation Program (NAPEP).

EMFB is targeting mainly the “unbanked” and the low-income people in Calabar. An important share of the attended clientele is represented by public civil servants, who receive their salary on their account at EMFB and access very easily and rapidly to microcredits and/or overdraft. EMFB currently operates through its three (3) branches (Chamley, Ikang and Etim Edem) and three (3) cash centres (Ika Ika, Big Qua, Mbukpa) who are positioned just within the markets, allowing to closely attend small scale traders and the artisan population. EMFB also provides individual lending and offers financial services as savings, deposits, payments, loans, and overdraft.

At Ekondo, we view ourselves as a company with limitless strengths and opportunities. By strategically placing ourselves in key locales, we have attained excellent market positioning and branding, as well as provided our customers with a wide variety of lending and savings products to meet their needs. We are actively planning to expand our operations into existing and new regions of operations so we can meet goal of evolving into a State Microfinance Bank. In this regard, the main strategic objectives envisaged by EMFB include:

  • the structural expansion through more branches and cash centers in Calabar
  • the institutional evolution as a state microfinance bank, increasing its capital to NGN 1 billion
  • the access to international sources of funds
  • partnering with the Cross River State Government and Federal Government to implement microfinance activities
  • launch new financial products like micro-leasing and savings product tailored for informal groups (ROSCAs), among others

Ekondo Microfinance Bank is poised to surpass the modest achievements of Ekondo Community Bank Ltd.