It is the desire of the members of the National Association of Microfinance Banks (NAMB) to be considered member of the Bankers’ Committee by the Central Bank of Nigeria (CBN).
This they believe will provide synergy between the microfinance banks and their corresponding banks.
NAMB is the apex body of all licensed microfinance banks in the country. It came into existence on November 12, 2009, with the intervention of the CBN that harmonised the erstwhile existing associations in the sub-sector.
NAMB is positioned to implement its aims and objectives as well as assist the CBN enforce the rules, regulations and policies of government in the microfinance sector.
Jethro Akun, newly retired president of NAMB, made several suggestions that will improve the operations of microfinance banks while addressing participants at the recent fourth annual general meeting of the association held in Lagos.
One of such suggestions is the need for the CBN to allow microfinance banks purchase treasury bills directly without going through any corresponding banks. Considering the importance of microfinance certification programme, he suggested that the CBN should continue to subsidise the training cost for the next two years.
Also, he saw the need to assist the young association to attend training outside the country to obtain firsthand knowledge, wishing that assistance be given to microfinance banks on banking technology, especially on a shared platform to reduce cost.
However, microfinance banks in the country disbursed a total of N97 billion loan to 5 million borrowers at the end of the financial year December 31, 2012.
The CBN has promised to work with them to serve the low-income earners better.
Speaking at the annual general meeting also, Olufemi Fabanwo, director, Other Financial Institutions and Supervision Department (OFISD) of the CBN, tasked operators on the need for awareness creation on operations of microfinance banks, specifically on the utilisation of development funds.
The new CBN governor, Godwin Emefiele has been supportive and has also initiated a meeting with the NAMB, managing directors and chairmen of MFBs along with other stakeholders with a view to charting way forward for MFBs in the country, according to Akun.
Consequently, a committee has been set up to work out modalities to access the N220 billion Micro Small and Medium Enterprise (MSME) Development Fund at single digit by microfinance banks and microfinance institutions for on-lending to the rural active poor.
HOPE MOSES-ASHIKE
