We are looking at stronger capital base for MFBs – CBN
The Central Bank of Nigeria (CBN) has said it is looking at stronger capital base for Microfinance Banks (MFBs) this year.
Godwin Emefiele, CBN Boss
Speculations was high amid CBN plans to increase capital requirement for the MFB sub-sector over Naira depreciation at the foreign exchange market among others.
According to source, the apex bank had explained that the plans was meant to enhance the performance of MFBs.
Recall that a Unit license MfB requires N20 million minimum paid up capital to operate; State MfBs license requires N100 million minimum paid up capital to operate while a National MfB requires N2 billion as minimum paid up capital to operate.
The Bank’s Acting Director, Corporate Communications Department (CCD), Mr. Isaac Okorafor on Monday said public would be informed once a decision is reached on the new capital base.
Okorafor on its twitter handle page, said, “Currently, we are looking at stronger Capital Base for MFBs.
“We believe that viable banks are required at this level to promote financial inclusion and Micro and Small Enterprises. As soon as a decision is taken on this, it will be made public.”
Joining other financial institutions to mark the Social Media Week with with a theme, #GrowthNG ‘Building on Nigeria’s economic recovery’ the spokesperson of CBN, said Nigerians should expect a better year than 2017.
“All the indices are positive. Better Oil price regime. Better growth figures expected, Inflation is trending down, and the exchange rate is stable. These are the markers of economic health. So, CBN remains positive.”
He reiterated that “the foreign exchange stability that we experience today is as a result of CBN’s ingenious measures in demand management, creation of the Interview & Exporter Window (I&E) in the foreign Market, and introduction of the 41 Items restricting access to foreign exchange for frivolous imports. And we are happy with the results.
Responding to CBN’s Anchor Borrowers Program (ABP), he said, “We are funding processors across the country to ensure off-take of farmers’ harvests and due prices paid.
“And introducing the 2nd model of ABP with commodity associations, beginning with rice farmers for 300,000 farmers that will add two tons of rice to national output.”
He was quick to explained that employment is not one of the direct mandates of CBN, stating that its intervention will generate employment fall within the mandate of the fiscal side
“What we have done is to fund agriculture and industry in order to create jobs. Activities that will generate employment fall within the mandate of the fiscal side.
“Nevertheless, our interventions such as Anchor Borrowers Programme, MSME, Youth Entrepreneurship Development Programme, Accelerated Agric. Development Scheme (AADS) etc are geared towards funding the real sector for job creation.”
He said Non-Performing Loans (NPLs) in the financial sector has decreased over improved macrocosmic development
According to him, “NPLs are actually decreasing as we speak. And it’s all thanks to the improving macroeconomic environment.
“However, the CBN will continue to closely monitor the development and to take all the measures to ensure financial stability.”
