by Jennifer Lee -

MICROCAPITAL STORY: Central Bank of Nigeria Warns of Mission Drifting by Microfinance Institutions

At a seminar for Finance Correspondents and Business Editors, the Central Bank of Nigeria (CBN) said it was worried about microfinance banks (MFBs) drifting from their core functions. The CBN also expressed concern about the distribution of MFBs in the country and the lack of functional support institutions.

by Mary Fu -

MICROCAPITAL STORY: Central Bank of Nigeria (CBN) Closes Failed Community Banks

The Central Bank of Nigeria (CBN) directed Community Banks (CBs) that have not met the recapitalization goal of NGN 20 million (USD 169,635) to submit their closing documents by the end of 2007. As part of Nigeria’s national Microfinance Policy launched by CBN in December 2005, the recapitalization directive was a requirement for CBs to operate as microfinance banks.

by Elizabeth Nelson -

MICROCAPITAL STORY: Central Bank of Nigeria (CBN) Approves Conversion of Community Bank into Microfinance Institution (MFI)

The Central Bank of Nigeria (CBN) has approved the conversion of the Olabisi Onabanjo University Community Bank Limited into a microfinance bank. The community bank has operated on the campus of Olabisi Onabanjo University in Ago-Iwoye, Nigeria since March of 2003, and the majority of its shareholders are affiliated with the university. One source reports that, in its first year in business, the bank made a surplus that was “far in excess of its total paid up capital,” but no other sources were found to corroborate this information and no further information was found on the OOU Community Bank.

by the MicroCapital Team -

MICROCAPITAL STORY: Ikole Microfinance Bank Ltd. Receives Provisional Approval by Central Bank of Nigeria (CBN) for Microfinance Operations

In accordance with the Nigerian legal requirement that all microfinance institutions (MFIs) operating in Nigeria must hold a MFI license, the Central Bank of Nigeria (CBN) has provided Ikole Microfinance Bank Ltd. with provisional approval to operate as a Nigerian MFI. The approval was given in a letter signed by Fred Oluwalademi, Director of CBN’s Other Financial Institutions Department on July 23, 2007. The letter comes two months after Ikole Microfinance first applied for its operating license.

Continue reading “MICROCAPITAL STORY: Ikole Microfinance Bank Ltd. Receives Provisional Approval by Central Bank of Nigeria (CBN) for Microfinance Operations”

by the MicroCapital Team -

Central Bank of Nigeria Approves 8 Organizations to Operate as Microfinance Banks

The Nigerian Central Bank recently approved eight organizations åö including United States-based ACCION åö to act as Microfinance Banks (MFBs) in the country. The other seven organizations are Lagos-based Susu, Integrated MFB, MIC, Wize Trade, Mustasons, the Osun State College of Technology, and First Global MFB of Port Harcourt.

Continue reading “Central Bank of Nigeria Approves 8 Organizations to Operate as Microfinance Banks”

by Chioma Okwudiafor -

MICROCAPITAL BRIEF: Central Bank Governor Sanusi of Nigeria Argues Microfinance Should Empower Families

Governor Sanusi Lamido Sanusi of the Central Bank of Nigeria, the apex financial authority of the country, recently announced the bank’s plans to establish a database of microfinance banks in Nigeria as part of efforts to regulate the microfinance sector [1].

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: Nigerian Central Bank Warns Of Increase In Non-Performing Microfinance Loans, Poor Corporate Governance And Commits To Impose Sanctions On Errant Officials At Microfinance Banks

In a recent report on the Nigerian news portal, Business Day Online [1], entitled ‘CBN to sanction erring directors of microfinance, mortgage banks’ [2], it was reported by Hope Moses-Ashike that the Central Bank of Nigeria (CBN) [3] has threatened to dismiss and prosecute senior officers and operators at microfinance institutions and primary mortgage banks who have been found to have engaged in malpractice. CBN officials expressed displeasure over improper conduct by chairmen, directors, senior management staff and auditors at microfinance institutions and other financial institutions in the country. They warned the operators from Lagos, Ondo, Ogun, Osun, Edo, Ekiti, Oyo and Kwara who attended a weekend meeting for financial institutions in Lagos that the Nigerian police and the Economic and Financial Crimes Commission (EFCC) [4] will be invited to intervene anytime any indication of malpractice is discovered.

by the MicroCapital Team -

Central Bank Nigeria (CBN) Prepares for Microfinance Certification Programme to Commence in 2008

Following news that the Central Bank Nigeria (CBN) would impose new regulations on microfinance banks last year (see article on microcapital.org) the CBN is preparing a systematic certification programme for microfinance banks operating in Nigeria. When the regulations were announced last year the deadline imposed for microfinance institutions (MFI’s) to comply with the new measures and convert to microfinance banks was December 2007. Once this deadline has passed and the micro-banks are all regulated, the certification process will begin (January 200). It forms part of a capacity building programme to try and make the domestic microfinance industry more robust and transparent. The CBN intends to base the certification on international best practices, and expects to enforce compliance with the certification requirements within 3 years.

Continue reading “Central Bank Nigeria (CBN) Prepares for Microfinance Certification Programme to Commence in 2008”

by the MicroCapital Team -

Nigeria Central Bank Holds Workshop on New Microfinance Policy that Invites Microfinance Investment

This month, the Central Bank of Nigeria (CBN) held a workshop designed to educate the public on the new microfinance policy framework released in December 2005. (See Microcapital Blog 7/3/06). The workshop is part of a campaign to sensitize stakeholders (the Nigerian government, Central Bank, the MFIs themselves, public and donor agencies) to the opportunities derived from the new policy program.


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by Saulius Ramanauskas -

MICROCAPITAL BRIEF: Airtel Africa Establishes Smartcash Payment Service Bank to Offer Payments, Remittances, Deposit to Individuals, Enterprises in Nigeria

Airtel Africa, a UK-based mobile money company active in Africa, recently launched Smartcash Payment Service Bank (PSB), to expand the range of financial services it offers in Nigeria. The move follows Airtel Africa having received a “super-agent” licence from the Central Bank of Nigeria, enabling the company to

by Arin Atluri -

MICROFINANCE PAPER WRAP-UP: “Measuring Fees and Transparency in Nigeria’s Digital Financial Services,” by William Blackmon and Brian Mwesigwa, Published by Innovations for Poverty Action

Digital financial services have evolved greatly in Nigeria over the last decade, but many people in the country still struggle to access formal financial services. This study explores three issues discouraging