Rita Ojukwu

Wealthy northerners have been challenged to invest heavily in the microfinance sector so that the active poor in the north would benefit from the services of Microfinance Institutions (MFIs)

The Director, Other Financial Institution Department (OFID), Olufemi Fabamwo of the Central Bank of Nigeria (CBN) who challenged the wealthy Northerners at the meeting of the Committee of Microfinance Banks in Nigeria in Lagos, noted that urban areas like Lagos, Abuja and Port Harcourt amongst others continue to be the toast of microfinance shareholders, while the rural areas in the north remain uncovered.

Fabamwo’s challenge was coming on the heels of revelation that about 205 Microfinance Banks (MFBs) are located in Lagos along with the Southern region recording 70 per cent of the total 905 microfinance banks in the country and this has impacted positively on the people of the areas.

The director said at the forum that the apex bank would encourage investors willing to set up their firms in the rural communities even as it has restricted licenses of MFB in urban centres.

While appealing to Nigerians to invest in microfinance sub-sector, Fabamwo said that the regulating body would not relent in its efforts being the informal sector into the informal financial system to make its accounting a lot more finance firm.

“This is the only way we think we can reduce poverty, unemployment, while creating job opportunities, Fabamwo declared, and appealed to the present 904 microfinance institutions to take banking services to the people rather than wait for transactions.

Meanwhile, the National Association of Microfinance Banks in Nigeria (NAMBIN), Lagos State chapter has said that it will not allow any microfinance bank to fail in the state.

Mr. Olutayo Adenekan, chairman, Lagos State Association of Microfinance Banks told journalists at the end of the Association’s monthly meeting in Lagos last week that, every necessary steps have been taken to ensure that no bank, especially its members collapse.

The chairman explained that the decision to put some members to some vacant post such as executive secretary was to allow the Association achieve its aims and objectives of protecting the integrity of the membership banks, as well as take microfinance banking campaign to the doorstep of the micro clients.

This, he noted, was to make Nigerians aware of how MFBs could assist them, while disclosing that the association is still working on the modalities of the Intervention Fund.

When operational, he said the Fund would provide short-term liquidity for MFBs in the state.