Central Bank of Nigeria (CBN) Governor Mallam Sanusi Lamido Sanusi has reportedly explained the delay in the release a proposed microfinance regulatory framework saying, “if we are going to have 2,000 microfinance institutions, I want to know that we have the capacity to regulate and supervise those institutions” [1].
MicroCapital.org reported last year that CBN was planning to develop a new microfinance regulatory framework “to prevent commercial bank operators from posing as MFIs” [2]. As of April 2010, the framework was expected to be instituted by June 2010 [2].
Mr Sanusi was quoted recently as adding, “The microfinance regulatory framework actually came to the last meeting of the Central Bank Board, but I stepped it down, and the reason I did that was because we keep licensing institutions and regulating operators without asking if we have built the capacity to supervise them” [1].
By: Alexandra Pattee, Research Associate
About Central Bank of Nigeria (CBN): Central Bank of Nigeria (CBN), established in 1958, is Nigeria’s central banking authority. As defined by the 1958 Act of Parliament that created CBN, its statutory mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government.” As of July 2010, CBN reports total assets of NGN 7.37 trillion (the equivalent of USD 48.6 billion).
Sources and Resources:
[1] This Day Live, “Sanusi Explains Delay in Microfinance Regulatory Framework”, http://www.thisdaylive.com/articles/sanusi-explains-delay-in-microfinance-regulatory-framework/89534/
[2] MicroCapital.org Article, April 2, 2010, “Central Bank of Nigeria (CBN) Developing a Framework to Regulate Microfinance Banking in the Country and Keep ‘Monsters’ Out of the Industry”, https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-cbn-developing-a-framework-to-regulate-microfinance-banking-in-the-country-and-keep-?monsters?-out-of-the-industry/
MicroCapital.org Article, April 5, 2010, “Nigerian Microfinance Institutions (MFIs) Continue to Require Collateral, Other Conditions for Loans; Lift Above Poverty Organisation (LAPO) to Cut Interest Rates”, https://www.microcapital.org/microcapital-brief-nigerian-microfinance-institutions-mfis-continue-to-require-collateral-other-conditions-for-loans-lift-above-poverty-organisation-lapo-to-cut-interest-rates-fees/
MicroCapital.org Article, March 7, 2011 “Central Bank of Nigeria (CBN) Directs Microfinance Banks to Adopt Technology and Shared Service Platforms, Hints at New Microfinance Policy Framework”, https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-cbn-directs-microfinance-banks-to-adopt-technology-and-shared-service-platforms-hints-at-new-microfinance-policy-framework/
MicroCapital.org Article, March 22, 2011, “Association of Micro Entrepreneurs of Nigeria (AMEN), Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), Central Bank of Nigeria (CBN) Promote Small Business Ventures, Financial Inclusion to Combat Youth Unemployment”, https://www.microcapital.org/microcapital-brief-association-of-micro-entrepreneurs-of-nigeria-amen-small-and-medium-enterprise-development-agency-of-nigeria-smedan-central-bank-of-nigeria-cbn-promote-small-business-ventu/
MicroCapital.org Article, March 7, 2011, “Nigerian Microfinance Bank Classic Microfinance Ordered to Sell Assets to Pay Debts to Former Depositors”, https://www.microcapital.org/microcapital-brief-nigerian-microfinance-bank-classic-microfinance-ordered-to-sell-assets-to-pay-debts-to-former-depositors/
MicroCapital.org Article, October 1, 2010, “Central Bank of Nigeria Revokes Licenses of 224 Microfinance Banks”, https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-revokes-licenses-of-224-microfinance-banks/
MicroCapital’s Universe Profile: Central Bank of Nigeria, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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