Business
CBN Gives MFBs June Deadline
The Central Bank of Nigeria (CBN) has given Micro Finance Banks (MFBs) June as deadline to embrace Information Technology infrastructure and shared services platforms in the conduct of their operations.
Dr Kingsley Moghalu, Deputy Governor, Banking System Stability, made this known when the National Association of Microfinance Banks (NAMB) paid him a courtesy visit.
This was contained in a statement issued by Alhaji Abdullahi Mohammed, Head, Corporate Affairs of the apex bank in Abuja on Saturday.
The statement noted that the infrastructure would enhance their operations and also assist in timely rendition of returns.
“June 2011 has been set as the deadline for the operators to comply with the directive on the IT infrastructure.
“The CBN is prepared to render any form of genuine assistance to the industry to ensure compliance,’’ it added.
The statement urged operators to collaborate and explore the opportunities offered by shared services initiative with a view to reducing their operational expenses drastically.
It said Moghalu advised the MFB operators to take corporate governance codes very seriously to enable them eschew any form of abuse such as insider related none-performing loans and violation of prudential guidelines.
“It is not in the best interest of the CBN to formulate policies that are inimical to the growth of MFBs.
“However, it is pertinent to sanitise the sector so as to realise the full potential of the sector as a veritable vehicle in the financial inclusion policy.
“The new microfinance policy framework will soon be released,’’ it stated.
It added that the new policy will address the misconception and proper understanding of microfinance, capital base, regulatory capacity framework and certification training, among others.
This, it held, would make MFBs play their role in the financial inclusion drive of the CBN.
It stated that the CBN is planning MFB fund to come on stream to support the industry and make it self-sustaining.
It also addressed the appeal by the operators to review the 20 per cent ceiling on the ratio of fixed assets to the total shareholders fund.
It explained that the purpose of the clause was to ensure that the operators had sufficient funds to operate with.
It explained that deploying the operators’ merger fund to the acquisition of fixed assets was not helpful to the MFBs liquidation position.
“Earlier, Chief Mathias Umeh, NAMB Chairman, appealed to the apex bank to assist in restoring public confidence in the sector that was eroded by the revocation of licenses of many MFBs in recent past.
“He urged the CBN to put in place a bail-out fund to assist in the timely recovery from shocks.
“Umeh also appealed to the apex bank to review the 20 per cent ceiling on the fixed assets as a ratio of shareholders funds as enshrined in the prudential guidelines as many operators have invested much in fixed assets like office buildings.
“He identified defaults in loan repayment as a major bane to growth of the industry.
“He commended the CBN for allowing the operators to make an input in the new microfinance policy framework,’’ added the statement.
Cornerstone of Financial Services
A survey of more than 1 000 global finance leaders undertaken by digital payment network Ripple shows that 72% of respondents believe they need to offer a digital asset solution to remain competitive.
According to Ripple, leaders from the banking, fintech, corporate and asset management sector have made it clear that the “digital asset revolution is happening now”.
“Digital assets are quickly becoming a cornerstone of financial services, underpinned by progressive regulation, growing interest from Tier-1 banks, a steady consumer shift from banks to fintech providers, and booming stablecoin adoption,” Ripple says.
The survey was conducted in early 2026 and the findings released in March.
Stablecoin Boon or Bane?
Ripple has experienced significant success in the stablecoin sector since launching its Ripple USD (RLUSD) stablecoin in 2024.
With a market cap of $1.56 billion, it is considered a major regulated player in the market.
No doubt the platform was pleased to learn through its own survey that financial leaders were most bullish about stablecoins.
Roughly three-quarters of respondents believed they could boost cash-flow efficiency and unlock trapped working capital.
Ripple noted that finance leaders were thinking about stablecoins as more than “just a new way to execute payments”; instead, they viewed them as effective tools for treasury management.
In March 2026, Ripple began testing a new trade finance model built around RLUSD in a bid to increase the speed of cross-border payments.
The pilot initiative, developed alongside supply chain finance company Unloq [https://unloq.com], is running on the XRP Ledger inside a testing framework developed by the Monetary Authority of Singapore.
The Asian city-state is one of the platform’s biggest growth markets.
The idea behind the project is to see whether stablecoin-based settlement can streamline trade finance, too often hampered by reliance on intermediaries and slow reconciliation.
The only potential drawback is that if the initiative takes off, the Ripple to USD price could be negatively affected.
Ripple has always championed its native XRP token as a bridge asset, the “middleman” in the process of a financial institution turning dollars in the US into pounds in the UK, for example.
Ripple converts dollars into XRP and then back into pounds.
If RLUSD can do exactly the same thing, questions will be asked about XRP’s relevance.
That is a bridge Ripple will have to cross if it gets to that point.
Tokenisation Partners
Another interesting finding from Ripple’s survey is that most banks and asset managers are seeking tokenisation partners to help execute their strategies.
Some 89% of respondents said digital asset storage and custody were top priority. “Token servicing/lifecycle management also ranks highly for banks at 82%, while asset managers place greater emphasis on primary distribution at 80%,” Ripple found.
The survey also revealed that just more than half of fintechs and financial institutions want an infrastructure provider that can offer a “one-stop-shop solution”. This rose to 71% among corporate financial leaders.
Ripple attributes this to institutions and firms wanting uncomplicated, cohesive systems.
Infrastructure Rules
In its final analysis, Ripple says companies across the board are looking for partners and solutions that are “secure, compliant, battle-tested and that enable growth and execution”.
“The message is clear: infrastructure decisions made today will shape competitive positioning tomorrow.”
No surprise that this is precisely where Ripple is placing much of its focus.