Business
Stakeholders Hail New Policy On Microfinance Banks
Some stakeholders in microfinance industry have commended the Central Bank of Nigeria (CBN) for introducing the new policy framework on the operations of microfinance banks.
They told newsmen in separate interviews in Lagos yesterday that the new framework would impact positively on the lives of the operators and small businesses.
Mr Mathias Omeh, President of National Association of Microfinance Banks (NAMB), said that the latest categorisation and the recommended paid up capital were acceptable to the operators.
He said that these would lead to emergence of stronger microfinance banks and the transformation of small and medium-scale businesses.
The newly revised Microfinance Policy Framework, dated June 27, directed that unit microfinance banks would operate in one location.
“It shall be required to have a minimum paid up capital of N20 million and is prohibited from having branches/cash centres,’’ it said.
It also directed that a state microfinance bank had been authorised to operate in one state or the Federal Capital Territory with a paid up capital of N100 million.
“And is allowed to open branches within the same state or FCT,’’ the policy stated.
It said that those in national category would have paid up capital of two billion naira and were allowed to open branches in all states and FCT.
Omeh said that CBN should introduce incentives to encourage these banks to meet their objectives.
“The apex bank should set up a loan service company that will refinance the bad debts which the microfinance banks may have encountered in the course of service delivery.
“Some of our customers have died, became insane and some with terminal illnesses in the course of the transactions,” he said.
Chief Jentro Akum, a former deputy governor in Plateau, said that the apex bank should device new ways of dispensing the Microfinance Development Fund (MDF).
He also called for effective government supervision of microfinance sub-sector through judicious implementation of the new policy and guidelines.
Akum, who is Chairman of Eagle Microfinance Bank in Bokkos, said that this would boost the confidence of Nigerians in the microfinance banking sub-sector.
He said that the apex bank should take a step further by educating microfinance operators on the new policy, especially on the aspect that dealt with the ownership structure.
“For instance, the policy stated that there shall be no ownership interest in more than one microfinance bank, unless CBN permits.
“Is it that stakeholders or investors will not be able to invest in more than one microfinance banks, if they have enough resources at their disposal?” Akum asked.
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