NBA To Invest N1.5 Billion To Generate Returns For The Association Says Olumide Akpata

*Sets Up Funds To Give Lawyers As Loan
*Says The Maximum Amount To Be Given As Loan Is N2 Million
*Says Disbursement Commences January 2022
*Says Default In Repayment Will Be Deemed Professional Misconduct

The President of the Nigerian Bar Association, Olumide Akpata, has announced the setting up of funds by the association to be invested for generation of returns for the association

Akpata, in a statement made available to TheNigeriaLawyer, also said the association has also set up funds to give out to members as loan. According to him, the maximum amount to be given out is N2 Million.

Read details below

Dear Colleagues,

As I mentioned to you during the NBA electioneering campaigns in 2020, the need for a stabilisation or “rainy-day” fund for an association like ours cannot be overemphasized. Leading Bar Associations around the world have, over the years, set aside significant amounts that they can resort to for their major expenses, especially when there is a considerable fluctuation in their revenues.  I therefore campaigned on the importance of a savings culture and proper investment of our funds at the NBA as a way to not only growing our assets base, but also minimizing interference from external bodies that may have a stronghold on the Association on account of funding, donations, and grants.

I also mentioned that access to, and availability of, finance for lawyers is a major issue that requires institutional attention from the NBA.  I believe that unlocking access to capital for our deserving members is key to improving our law practices, increasing revenue generation for lawyers, and overall bettering our professional lives.

On that basis, in a recent correspondence to you, I informed you that we, together with the members of the NBA Finance Committee (under the joint leadership of Seni Adio, SAN and Mazi Okechukwu Unegbu), were working on a framework to deal with each of these issues.  I am pleased to report that the targets that we set for ourselves on those points are now being realized as follows:

NBA Stabilisation Fund 

We have set up the NBA Stabilisation Fund which we have already saved up and set aside the sum of N1billion for, and now commit to having up to N1.5billon (in the aggregate), at the minimum, deposited in the fund, over the next few months.  The fund will invest in a portfolio of assets that will generate steady returns for the Association over time.  A team of subject matter experts have developed investment guidelines on how the Fund will be managed, invested, and utilised.  The National Executive Council of the NBA approved the establishment of the Fund at its meeting held on 16^th December 2021.

Access to Finance for Lawyers 

We have set up an access to finance scheme for lawyers who may require loans, at single digit, or less than market, interest rates, for their working capital and operational needs.  The scheme involves enabling borrowing by eligible lawyers from two designated commercial banks (First Bank of Nigeria and Access Bank PLC) under an arrangement that is backstopped or cash-backed by the NBA.  Among other terms that will be detailed in the documents that a lawyer is expected to sign with a participating bank, it is important to highlight the following:

The NBA and the participating banks have agreed a tiered mechanism for enforcement in the event of default on the loan, which includes the possibility of deeming a default as professional misconduct.  As such, we encourage our members to borrow prudently and only for purposes that will help expand their operations, improve their practices, grow their revenues, and ultimately better their professional lives.

The NBA Finance Committee will circulate further correspondence regarding the Access to Finance Scheme in due course.

We know that you have enormous expectations of us, and my team and I will continue to do all that we can to meet those expectations and to deliver on your mandate.

I wish you a Merry Christmas and a Happy New Year in advance.