Microfinance Banks Loan Portfolio Hits N81bn

The National Association of Micro-finance Banks (NAMB), said last week that the total performing loans of the banks stood at N81 billion as at March 31, 2012.

Mr Mustapha Yar’adua, the Executive Secretary of the NAMB, said in Lagos that the amount represented the total performing loans from 2005 when the banks came into operation to March 31, 2012.

Yar’adua said that the total deposits for the period was N34 billion, while the customers of the banks all over the country stood at 905,000.

He added that the total performing loans for the period ended December 31, 2011, was above N60 billion.

The director said that in spite of the absence of financial support from the Central Bank of Nigeria, operators had been able to increase their loan services to clients based on high demand.

He said: “According to research carried out by Enhancing Financial Innovation and Access (EnFIA) in 2011, 33 million Nigerians are ready to patronise micro finance banks if they get access.”

“The sub-sector could only be accessed by about 33 million Nigerians and increase its performing loans, if there is financial back-up from CBN and the Federal Government.”

He said that the sanitisation exercise carried out in September 2011 during which the licences of over 103 micro finance banks were revoked by the CBN, left the remaining banks more committed.

“Also, a research conducted by NAMB, revealed that some of the banks are now extending to rural areas,” he said.

Yar’adua urged the Federal Government to support the sub-sector with funds and facilities that would enable the 33 million Nigerians willing to access the banks to do so.

Reports say that there are 837 microfinance banks in the country.