Chief Olutayo Adenekan, the Lagos State chairman of the National Association of Microfinance Banks (NAMB), is reportedly still working to implement an intervention fund to provide short-term financial support to microfinance banks [1,2,3].The aim of the fund, which was set up in September of 2009, is to provide illiquid microfinance banks with funds to cover depositor withdrawals as quickly as possible so as to prevent panic amongst customers [1]. Microfinance banks as well as other institutions will potentially contribute to the fund which is viewed as a “profit making venture” that will pay dividends [1]. Requirements for membership for microfinance banks include registration with the Central Bank of Nigeria (CBN), contributing an unspecified minimum deposit to the fund, registering collateral, and remaining financially transparent to the Lagos State chapter [1,4].
By Christopher Maggio, Research Assistant
About:
National Association of Microfinance Banks of Nigeria (NAMB)
Description:
The National Association of Microfinance Banks of Nigeria (NAMB), an association of various microfinance institutions (MFIs), was recently reformed by merging with the Association of Microfinance Banks in Nigeria (AMBN), under the supervision of the Central Bank of Nigeria (CBN). For more information on this merging of associations, visit the last MicroCapital brief in the bibliography.
MicroCapital’s Microfinance Universe profile: National Association of Microfinance Banks of Nigeria (NAMB)
About:
The Central Bank of Nigeria (CBN)
Description:
Some of the regulatory objectives of the Central Bank of Nigeria (CBN) are as follows: to issue legal tender, to maintain the external reserves of the country, to promote monetary stability and a sound financial environment, and to act as a banker of last resort and financial adviser to the federal government.
MicroCapital’s Microfinance Universe profile: CBN
Bibliography:
[1] Vanguard News Online article entitled ‘Intervention Fund to provide short-term financial support to MFBs’: http://www.vanguardngr.com/2010/01/18/intervention-fund-to-provide-short-term-financial-support-to-mfbs/
[2] Vanguard News Online article entitled ‘Lagos State Microfinance Association Sets up Intervention Fund’: http://www.vanguardngr.com/2009/09/03/lagos-state-microfinance-association-sets-up-intervention-fund/
[3] MICROCAPITAL.ORG BRIEF: Nigerian Microfinance Banks Pledge to Form Single Organization in Response to Supervision Crisis: https://www.microcapital.org/microcapitalorg-brief-nigerian-microfinance-banks-pledge-to-form-single-organization-in-response-to-supervision-crisis/
[4] Central Bank of Nigeria: http://www.cenbank.org/
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