According to Mr Bashorun Alabi-Macfoy, the chairman of Lagos State Microfinance Institution (LASMI), the microfinance agency of the Lagos State government in Nigeria, his institution has generated over 200,000 jobs as of May through its support of borrowers via microfinance institutions (MFIs) across the state.
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MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Organizes Mandatory Certification Training Program for Operators of Microfinance Institutions (MFIs)
The Central Bank of Nigeria (CBN) has organized a mandatory certification training program for microfinance practitioners. According to Emma Okoidegun, the senior manager of the Development Finance Office of CBN, the objective of the certification program, which was held simultaneously in 24 centers in the country, was to provide guidelines for microfinance operations across the nation. This training program is in response to the deteriorating condition of the microfinance sector in Nigeria.
MICROCAPITAL BRIEF: President of the Nigerian Association of Small and Medium Enterprises (NASME) Cites Lack of Skilled Workers as Reason for Failure of Microfinance Institutions (MFIs) in Nigeria
Dr Ike Abugu, President of the Nigerian Association of Small and Medium Enterprises (NASME), has called the lack of skilled workers employed in microfinance as the reason why he feels microfinance has been unable to impact the economy and fulfill its promise. Dr Abugu commented, “The kind of people that went into microfinance was spillover from the commercial banks so they still had this banking mentality. They did not have the skills, knowledge and expertise to run microfinance banks.”
MICROCAPITAL BRIEF: Niger State in Nigeria To Facilitate the Establishment of New Microfinance Banks (MFBs) Across the State
Alhaji Mohammed Aliyu, Director-General of Niger State Small and Medium-Sized Enterprises and Microfinance Agencies, has announced that the number of microfinance banks (MFBs) in Niger, the largest state by area in Nigeria, is expected to grow from 11 to 31 by the middle of 2010. According to Mr Aliyu, this will employ between 300 and 500 college graduates in the state. Over CFA 1.5 billion (USD 2.8 million) in total have been disbursed for the creation of these new banks by the local governments. Included in this amount is CFA 30 million (USD 56,000) given interest-free to 18 microcredit cooperatives for consulting services as well as for advocacy and outreach efforts across the state. Local subdivisions of the state government have spent over CFA 260 million (USD 490,000) towards renovating the bank offices.
MICROCAPITAL BRIEF: Nigerian National Association of Microfinance Banks (NAMB) Announces 10-Point Plan to Revitalize Microfinance Banks
Mathias Omeh, National President of the Nigerian National Association of Microfinance Banks (NAMB), announced the release of a ten-point plan to revitalize his country’s microfinance sector [1]. Omeh was elected to the position less than a month ago on promises of increased scrutiny and public microfinance education [2].
MICROCAPITAL BRIEF: The National Association of Microfinance Banks (NAMB) to Partner with Universities to Facilitate Capacity Building in Nigerian Microfinance Sector
Chief Jethro Akun, the Vice President of the National Association of Microfinance Banks (NAMB) in Nigeria, has announced plans to partner with the National University Commission (NUC), a parastatal under the Federal Ministry of Education established in 1962, to facilitate the offering of courses in microfinance banking at the university level. According to Mr. Akun, the partnership is necessary as the microfinance sector needs more “manpower” to achieve growth in the sector. He also believes that courses in microfinance banking will help to allay many of the fears of the general public over the viability of microfinance banks [1].
MICROCAPITAL BRIEF: Microlenders in Nigeria Unite Under the Association for the Survival/Sustenance of Microfinance Institutions (MFIs)
A group of microfinance institutions (MFIs) across Nigeria, including microfinance banks, co-operative societies and NGOs, has joined together to form the Association for the Survival/Sustenance of Microfinance Institutions. The primary goal of the association is to facilitate funding from international financial institutions such as the International Monetary Fund (IMF) and the International Finance Corporation (IFC).
MICROCAPITAL BRIEF: Five Employees Defraud Nigerian Christ Embassy Microfinance Bank of $400k
The Nigerian Special Fraud Unit of the Nigerian Police Force recently detained five employees of the Christ Embassy microfinance bank for defrauding the organization of NGN 60 million (USD 400,000) [1]. The five employees funneled the money into two false accounts beginning some time in 2008 and ending in February 2009 when an independent auditor noted that the funds were missing [2]. At the time, the organization’s microfinance operations had not been licensed by the Central Bank of Nigeria (CBN).
MICROCAPITAL BRIEF: Nigerian Tech Firms SystemSpecs and Maxim-Pro Release Memorandum of Understanding Targeting Microfinance Bank Enhancement
SystemSpecs, a software development firm founded in 1991 and headquartered in Lagos, Nigeria [1], and Maxim-Pro, a Nigerian financial technology firm [2], recently released a joint memorandum of understanding (MOU) expressing their commitment to the development of a technological infrastructure for Nigerian microfinance banks [3]. In March 2010, the two companies released Remita, an e-payment service for microfinance banks [4]. The service is currently used by 125 microfinance banks in Nigeria. A September 2008 World Bank report documented 840 microfinance institutions in Nigeria [5]. Of these, only seven have reported to MIXMarket, the microfinance information clearinghouse, for 2008 [6].
MICROCAPITAL BRIEF: Africa Capital and Business Support (ACBS) Limited of Nigeria Secures $400m from Mainsail Trading Limited of Dubai to be Provided to Microfinance Institutions (MFIs) in Nigeria Via Subordinated Convertible Debentures (SCDs)
Africa Capital and Business Support (ACBS) Limited, a Nigerian financial intermediary, has secured USD 400 million in funds for microfinance institutions (MFIs) in Nigeria.
MICROCAPITAL BRIEF: Nigerian National Association of Microfinance Banks (NAMB) Elects New Leaders
Mathias Omeh, chairman of Nsukka Microfinance Bank, beat out Olutayo Adenekan, chairman of All Stars Microfinance Microfinance Bank, to become the National President of the Nigerian National Association of Microfinance Banks (NAMB) by a vote of 288 to 202 [1]. Upon election, Mr Omeh directly addressed waning public trust in microfinance banks.
MICROCAPITAL BRIEF: The Promise of Microinsurance in Nigeria
In a recent article, Akin Ogunbiyi, the managing director of an insurance provider in Nigeria, Mutual Benefits Assurance Plc, spoke about the future for microinsurance in Nigeria.
MICROCAPITAL BRIEF: Regulation Restructuring by Central Bank of Nigeria (CBN) May Harm Microfinance Banks
The Central Bank of Nigeria (CBN) announced plans to repeal universal banking by September of 2011. Universal banking, introduced to Nigeria in 1999, allows a bank to function in all sectors under a single body of regulation [1]. The CBN would revert to specialized banking, its pre-1999 regulation structure, where banks are licensed to act in a single sector. This new structure would include microfinance-specialized banks as their own category. Samuel Oni, CBN Director of Banking Supervision, said the regulatory reform would reduce operating risk and bring the CBN closer in line with the International Financial Reporting Standards [2], a body of best practices maintained by the International Accounting Standards Board.
MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Commences Nationwide Investigation of Microfinance Institutions (MFIs)
After a joint examination exercise with the Central Bank of Nigeria (CBN) and a slew of complaints from depositors of microfinance institutions (MFIs) that have shut down, the Nigeria Deposit Insurance Corporation (NDIC), the country’s financial industry regulator, recently began a nationwide investigation of MFIs.
MICROCAPITAL BRIEF: Germany’s Bank im Bistum Essen Seeks to Invest in Umuchinemere Procredit Micro Finance Bank Nigeria (UPMFB)
Germany’s Bank im Bistum Essen, a cooperative specialist bank with a current investment portfolio of EUR 150 million (USD 200 million), recently met with the management team at Umuchinemere Procredit Micro Finance Bank Nigeria (UPMFB) to discuss a potential partnership.
MICROCAPITAL BRIEF: Editorial in Nigeria’s Daily Trust Urges Central Bank of Nigeria (CBN) to Tighten Regulation of Microfinance
In a recent op-ed piece published in Nigeria’s online Daily Trust, Ms Ijeoma Kalu urges the Central Bank of Nigeria (CBN) to tighten regulation of the microfinance industry and ensure “that only professionals are permitted to practice.”
MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Developing a Framework to Regulate Microfinance Banking in the Country and Keep “Monsters” Out of the Industry
Joe Alegienu, the Central Bank of Nigeria’s Director of Development Banking, said at a recent meeting with managers of the National Poverty Alleviation Programme (NAPEP), that it is developing a framework to regulate microfinance institutions (MFIs) within Nigeria.
MICROCAPITAL BRIEF: Agence Française de Développement (AFD) Grants €1m to Microfinance Institution MicroCred Nigeria
Agence Française de Développement (AFD), France’s public development-finance institution, has granted EUR 1 million (USD 1.3 million) to MicroCred Nigeria to help build capacity in Nigeria’s microfinance sector.