The Central Bank of Nigeria (CBN) on Thursday said it has so far established 840 microfinance banks (MFBs) in the country.
The micro finance bank policy was launched in 2005, to replace community banks in an effort to take banking to the grassroots of Nigeria as well as sanitise the system.
Chukwuma Soludo, the Governor of the apex bank made the revelation at the third Annual Microfinance Conference and Entrepreneurship Awards with theme: "Commercial Microfinance as a tool for Poverty Alleviation" in Abuja.
He noted that despite the increase in number of the banks over the years they were unevenly distributed across the country.
The CBN Governor pointed out that the primacy of launching the microfinance policy followed the realization that the poor had no access to credit facilities, adding that with the current global financial crisis, banks all over the world are not lending out funds.
Consequently, Soludo said as access to credit is declining there is high propensity to hinder the poor from accessing fund for micro businesses but the CBN must wade in to shield them from the adverse effect.
According to him, as CBN strives to mitigate the effect of the financial crisis on the poor, the nation has to ensure that it spread the Microfinance banks where they are sparsely located.
Soludo, who said the task of locating the banks to combat poverty should be collective, urged states and individuals to join the battle by establishing more microfinance banks.
While commenting on the current global financial crisis, Soludo said the world has never had it this rough even in 1929 when there was economic recession.
"We have to face the challenge of making our economy work despite meltdown. In the last two weeks, order has been restored in the foreign exchange market. It is possible that Naira will be strengthened as stability of price is necessary to keep the economy on an even heel.
"We are keeping active surveillance on the banks and any manifestation will be responded to. With your cooperation, we will work against the global financial crisis. Therefore, we must think and act microfinance to lift the poor from poverty", he added.
Also speaking, Vice President Goodluck Jonathan, who represented President Umar Yar'Adua noted that the present administration has taken different measures to shield the country from economic slowdown.
He said government has inaugurated a committee to tackle the financial meltdown, adding "it is my personal desire to ensure that fund is provided for the poor."
Similarly, Finance Minister, Mansur Muhtar said the event came up at very critical moment, which is an indication that effects of poverty must be mitigated.
micro finance bank in Nigeria has not been affecting peoples life in the time past due to the hectic and inviability of found to their disposal and government policy that has constrained their activities,and ground it to the background. thanks to the current central bank of Nigeria governor who has greatly revolutionizer's the banking sector through bank consolidation and turning the community banks into micro finance banks.
now after the consolidation process and the access to bank loan has been out of reach to the common man in the society who has nothing to give for the big demand of all these banks such ans UBA, FIRST BANK,UNION BANK ETC .though some of all these bank has been fully given the permission to operate as micro finance bank little has been done but the little did should be appreciated and these are
providing money to co-operate group(such as cooperative society and age groups) which ordinarily can not obtain loan due to no collateral.
these micro finance banks gone up the extent of buying tools,paying for shops and proving business capitals to budding enterprises.
all these and many more on stated here are the impact of micro finance bank in Nigeria
Kudos to chukwuma C. saludo (central bank governor of Nigeria.)
Policy framework for supporting and enhancing the provision of diversified microfinance services in Nigeria
This document outlines the microfinance policy of Nigeria. It also presents the regulatory and supervisory framework for microfinance operations in Nigeria.
The document discusses:
- An overview of the microfinance activity in Nigeria;
- Justification for establishment of microfinance banks;
- The microfinance policy of Nigeria;
- Goals and objectives of microfinance banks;
- Policy measures and instruments in establishment of the framework for microfinance banks;
- Framework for supervision of microfinance banks;
- Regulatory incentives for microfinance institutions;
- Roles and responsibilities of different stake holders.
The document concludes that:
- There exists a huge untapped potential for financial intermediation at the micro and rural levels of the Nigerian economy.
- Microfinance banks being established in line with this policy framework should be adequately capitalized, appropriately regulated and supervised to address the need of financing at the micro levels of the economy;
- Existing community banks should transform to microfinance banks within 24 months of approval of this policy, by increasing their shareholders’ funds unimpaired by losses, to a minimum of N 20.0 million;
- Central Bank of Nigeria should supervise and regulate the microfinance banks.