The stakeholders, shareholders and management of the National Open University of Nigeria are currently at loggerhead over who controls the institution’s Microfinance Bank, a situation that has led to rising tension at NOUN’s headquarters in Abuja.
According to available information, the National Open University of Nigeria (NOUN) has a student population of over 200,000 students, making it the largest university in Nigeria by student enrollment. The microfinance Bank is expected to serve most of the student population in its financial dealings with the institution, giving it a strong transactional base.
NOUN MFB is owned by the school, the cooperative society, the owner of Spectrum Engineering, Isa Abubakar, the Owner of Tanadi Investment Ltd and former Vice-chancellor of the school, Samaila Ado Tenebe, and Integrated Facility Management Services Ltd. There are also a few others whose interests are either inconsequential or non-verifiable. The aim of the bank is to diversify income like other universities that have hugely benefited from such.
However, sources within the school disclosed that the bank has been poorly managed, and is now mired with infighting by some of its shareholders who are angling for controlling stakes.
Unlike other higher institutions that has successfully run their microfinance banks, peace have eluded NOUN MFB which narrowly escaped the CBN noose during the tenure of the former governor of the apex bank, Godwin Emefiele who revoked the licenses of many due to their erosion of capital and poor performance.
The NOUN MFB since inception has been beset with the non-availability of valid memorandum and articles of association, properly structured ownership, and lacking shareholder’s agreement to guide its operations. In addition, it has struggled to have dividend and investment policies.
While these are noticeable setbacks for the NOUN MFB, the fight for control is a major issue that insiders say could further cripple the lender and move it away from accomplishing the set objectives.
Sources say that one of the shareholders is trying to seize control of the bank above the school and the cooperative society, which have been known to be the majority and the founding shareholders.
Some of those angling for the MFB, allegedly waited for the effect of the poor management to manifest before showing their hands so that they could take controlling shares.
Another source accused them of trying to take advantage of the captive market provided by the school’s student population and staff which the MFB enjoys, adding that this is driving the interest of parties outside the school’s community to have a shareholding in the NOUN MFB.
The tenure of the incumbent Vice Chancellor, Prof Femi Peters expires next year and is unclear whether he would succumb to the growing controlling interests from outside as was done by the immediate past Vice-Chancellor of the university.
Dr Isa Yuguda, former governor of Bauchi State is presently the chair of the governing council of NOUN.
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