The National Association
of Micro-Finance Banks (NAMB), says that its members will meet the Central Bank of Nigeria (CBN) December 31 recapitalisation deadline.
The NAMB Executive Secretary, Mr Kabir Yar’adua, made this known in an interview in Abuja on Tuesday.
It will be  recalled that the apex bank had in 2010 directed all microfinance banks to recapitalise with N20 million, N100 million and N2 billion, respectively.
The banks were divided into three categories, namely; unit, state and national.
The unit microfinance banks are to operate within a local government area with only one branch; state category can establish many branches within a state while the national can have many branches nationwide.
Yar’adua said the association made an appeal to the CBN to extend the deadline from December 2012 to December 2013 which was granted.
He said the gesture would enable the banks to meet the deadline and commended the CBN for granting their appeal to allow the unit microfinance banks to open more than one branch.
“A circular just came out from CBN clarifying the position further that the unit micro finance banks can now have one more branch other than their head office within a local government.
“Just like the state, microfinance banks can have many branches in a state, and the national can have as many branches nationwide.
“We also advocated that the unit microfinance banks be allowed to open many branches within a local government.
“The good news is that the CBN had agreed to our plea that unit microfinance banks be allowed to open more than one branch,” he said.
Yar’adua said the policy disallowed any microfinance bank to operate in two local governments, except if they could provide the capital to register another bank.
“What the new policy says is that a unit bank that has a branch in another local government will have to provide another N20 million to register another microfinance bank.
“Or if it does not have capital to register another microfinance bank, it should pay off all existing customers in that branch and close that branch,” he said.
He also said the operators were happy with the policy, adding that all of them would comply with the apex bank’s directive.
According to him, there can be a merger in the process as the apex bank encouraged merger as part of the recapitalisation process.
“So far, a lot of our members during the last meeting with the CBN are happy with the policy. That tells me that the level of compliance is high.
“I am optimistic that most, if not all the microfinance banks, will meet up the requirements.
“Merger may be part of the solution, you cannot rule out merger, there is even an incentive for the banks to merge by the CBN,’’ he said.