International Finance Corporation (IFC), the private-investment arm of the World Bank Group, is reported to be conducting due diligence on the Nigerian mobile money industry. Mobile Money Africa, a Nigerian-based online mobile financial inclusion news source, reports that IFC is “keen to play a major role in the country’s emerging mobile money ecosystem and was currently evaluati[ng] opportunities [in]…technology acquisition, e-Float management and agency networks” [1]. To address the lack of financial access in the country, the Central Bank of Nigeria has granted licenses to 16 mobile money companies in an effort to encourage growth in this industry.
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MICROCAPITAL BRIEF: Nigeria’s National Association of Microfinance Banks (NAMB) Expected to Form MFB Trust Fund by End of Month
Having obtained formal consent for the project from the Corporate Affairs Commission (CAC), a Nigerian regulatory agency, the National Association of Microfinance Banks (NAMB), a trade group of 820 Nigerian microfinance institutions (MFIs), is expected to form a trust fund before the end of May to protect members from liquidity shocks.
MICROCAPITAL BRIEF: Goodwell West Africa Invests in Nigerian Mobile Money Service, Paga
Goodwell West Africa, a branch of Goodwell Investments of the Netherlands, has invested an undisclosed amount in Paga’s mobile money service with approval from the Central Bank of Nigeria.
MICROCAPITAL BRIEF: Central Bank of Nigeria Inspecting Microfinance Institutions with Provisional Licenses, Plans to Cut Number of Microbanks “Drastically”
The Central Bank of Nigeria (CBN), the nation’s central banking authority, recently announced that it has commenced inspections to assess the level of compliance with its operational guidelines at the 103 microfinance institutions (MFIs) that were granted approval-in-principle after being among the 224 MFIs that had their licenses revoked in September 2010.
MICROCAPITAL BRIEF: Depositors of Closed Microfinance Institutions (MFIs) to be Reimbursed up to $63m by Nigeria Deposit Insurance Corporation (NDIC)
The Nigeria Deposit Insurance Corporation (NDIC), an agency of the federal government that guarantees the settlement of insured deposits, recently announced that it will pay approximately NGN 9.8 billion (USD 63 million) to 731,000 depositors of ninety-one microfinance institutions (MFIs) whose licenses have been revoked.
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Governor Explains Delay in Microfinance Regulatory Framework
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 BRIEF: Nigerian Microfinance Institutions (MFIs) Continue to Require Collateral, Other Conditions for Loans; Lift Above Poverty Organisation (LAPO) to Cut Interest Rates
Most Nigerian microfinance institutions (MFIs) reportedly continue to place conditions on borrowers who are seeking to take out loans, despite the stated policy of the Central Bank of Nigeria (CBN) to de-emphasize such requirements.
MICROCAPITAL BRIEF: Nigeria’s Lagos State Microfinance Institution (LASMI) to Partner with “Financially Capable” Microfinance Institutions (MFIs)
The Lagos State Microfinance Institution (LASMI), an agency that was established by the government of the Nigerian state of Lagos to oversee its microfinance program, recently announced plans to partner with microfinance institutions (MFIs) that it deems financially viable in an effort to increase financial inclusion and the empowerment of poor people.
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 Ventures, Financial Inclusion to Combat Youth Unemployment
The Association of Micro Entrepreneurs of Nigeria (AMEN) recently announced plans to work with two government agencies, the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and the Central Bank of Nigeria (CBN), to combat youth unemployment in the country by encouraging young Nigerians to engage in small business ventures.
MICROCAPITAL BRIEF: Diamond Bank of Nigeria Offers Collateral-Free Loans to Micro-, Small and Medium-Sized Enterprises (MSMEs)
Diamond Bank Public Limited Company (PLC), a Nigerian commercial bank that was established in 1990, recently announced that it would extend collateral-free loans to micro-, small and medium-sized enterprises (MSMEs).
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN): No More Time For Microfinance Banks (MFBs) to Recapitalize
The Central Bank of Nigeria (CBN) recently announced that it will not allow 121 microfinance banks (MFBs) that received provisional operating licenses in October 2010 more time to recapitalize. CBN gave the 121 MFBs, the surviving portion of 224 MFBs that had their operating licenses revoked in October 2010, a deadline of January 31 to increase their minimum capital from NGN 10 million (USD 64,200) to NGN 20 million (USD 131,000), shutdown branches engaging in illegal activities and embrace “good” corporate governance.
MICROCAPITAL BRIEF: International Finance Corporation (IFC) Reports Village Phone Program Has Provided Credit to 6,000 Women, Trained 10,000 in Madagascar, Malawi and Nigeria
International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, recently announced that the Village Phone Program, an initiative IFC launched in 2006 that aims to connect African telecommunications operators with rural entrepreneurs, has helped provide credit to approximately 6,000 women entrepreneurs and trained approximately 10,000 women to set up phone service businesses in Madagascar, Malawi and Nigeria.
MICROCAPITAL BRIEF: Nigerian Microfinance Bank Classic Microfinance Ordered to Sell Assets to Pay Debts to Former Depositors
Abeokuta-based microfinance bank (MFB) Classic Microfinance has been reportedly forced to sell off assets to pay debts it owes to its former depositors. The move is part of a broader effort in Nigeria to repay depositors of over 100 MFBs—including Classic Microfinance—whose licenses were permanently revoked in 2010 after being deemed “terminally distressed and technically insolvent.”
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Directs Microfinance Banks to Adopt Technology and Shared Service Platforms, Hints at New Microfinance Policy Framework
The Central Bank of Nigeria (CBN) recently mandated that microfinance banks (MFBs) adopt information technology infrastructure and utilize shared service providers—organizations that provide services such as cash processing and currency sorting for multiple banks—by June 2011 as concerns over struggling MFBs persist. CBN reportedly will offer financial assistance to MFBs to facilitate compliance with the directive. Use of the shared service platforms is also expected to help MFBs reduce operating expenses.
MICROCAPITAL BRIEF: Eagle Flight Microfinance Bank Attempts to Reassure Clients After Mistakenly Being Included in List of Failed Nigerian Microfinance Banks (MFBs)
Eagle Flight Microfinance Bank, a financial institution licensed with Central Bank of Nigeria (CBN) and based in the city of Warri, reportedly was mistakenly included in a 2010 list of over 100 microfinance banks (MFBs) whose licenses were to be revoked by CBN. A week after the list of banks who could not repay debtors was released, CBN discovered that Eagle Flight Microfinance Bank was included in the list in error. In an effort to restore confidence in the bank, Eagle Flight hosted a party celebrating its fifth anniversary during which it gave away various gifts to clients including vehicles, plasma televisions, dining sets, electric generators and refrigerators.
MICROCAPITAL BRIEF: Royal Exchange Microfinance Bank of Nigeria Partners with Fidelity Bank to Offer Customers Access to More Bank Branches, Automated Teller Machines (ATMs)
Royal Exchange Microfinance Bank of Nigeria, the microfinance subsidiary of Nigerian financial services company Royal Exchange Public Limited Company, recently partnered with Fidelity Bank Public Limited Company, a Nigerian commercial bank, enabling its customers to access financial services through Fidelity’s service delivery network.
MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Meets with Directors of Liquidated Microfinance Institutions (MFIs) to Discuss Customer Payouts
The Nigeria Deposit Insurance Corporation (NDIC), an agency of the federal government of Nigeria that protects depositors by guaranteeing the settlement of insured deposits, recently met with the directors of nineteen liquidated microfinance institutions (MFIs) to discuss how to repay customers’ deposits.
MICROCAPITAL BRIEF: Microfinance Banks Ask Central Bank of Nigeria for Six More Months to Meet Tightened Licensing Requirements
Microfinance banks in Nigeria have entered negotiations with the Central Bank of Nigeria (CBN) to extend by six months their grace period to operate with provisional licenses [1].