Lotus Capital Limited has received a technical assistance grant of $250,000 from Enhancing Financial Innovation & Access (EFInA) to support the Lotus Health is Wealth Savings Plan (LHIWSP).
EFInA is a financial sector development organisation that promotes financial inclusion in Nigeria.
On the other hand, Lotus Capital Limited is the pioneer provider of non-interest financial services in Nigeria. The company provides a broad spectrum of fund/portfolio management services for individual, corporate and retail clients.
The LHIWSP is a dynamic non-interest, fixed income savings product that will also offer health insurance. The Plan is structured around monthly collections of deposits from customers which will be invested in non-interest, low-risk instruments, and non-interest fixed term investments to give customers returns on their savings. A small portion of customers’ deposits will be allocated to pay the monthly premiums for health insurance. The project will be piloted in Lagos, Abuja and Kano States. Lotus Capital will target traders, market associations, religious associations, service companies and women pressure groups.
Speaking about the grant, a statement quoted the Chief Executive Officer of EFInA, Chidinma Lawanson to have explained that the EFInA Access to Financial Services in Nigeria 2014 survey revealed that 16.8 million adults representing18 per cent of the adult population who do not use non-interest banking products stated that they are likely to take up such products if they are readily available.
“The Lotus Health is Wealth products add to the diversity and range of affordable financial products to low and middle income segments of the population who may be unbanked and under-banked,” she said.
She added: “Through the project, Lotus Capital will drive awareness on non-interest finance and enhance financial literacy among the low income targets; given that the company’s direct sales agent will interface with customers to showcase the product.”
On her part, Managing Director of Lotus Capital, Hajara Adeola said: “Since our founding, we have being dedicated to creating wealth ethically for our clients. Our firm belief is that with the right financial plan and education, everyone can and should improve the quality of their life. Through this project, we hope to encourage the development of an investment culture among the low income and financially excluded segment of the population.