The 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 Central Bank of Nigeria (CBN) has promised to work with the microfinance banks to serve the low income earners better.
Speaking at the 2013 annual general meeting of the National Association of Microfinance Banks held in Lagos, Olufemi Fabanwo Director, Other Financial Institutions and Supervision Department (OFISD) tasked operators on the need for awareness creation on operations of microfinance banks specifically on the utilization of development funds.
The new CBN governor, Godwin Emefiele has been supportive and has also initiated a meeting with the National Association of Microfinance Banks (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 Jethro Akun president, NAMB.
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.
Akun who has just retired as the NAMB president said a major challenge the MFBs are currently confronting is the issue of converting to public liability company by banks having over 50 shareholders.
HOPE MOSES-ASHIKE
