Microfinance banks (MFBs) in Nigeria are reporting that borrowers are building up such high levels of debt that they are fleeing their homes and, having given false guarantor names, are essentially untraceable.
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MICROCAPITAL BRIEF: Central Bank of Nigeria Revokes Licenses of 224 Microfinance Banks
The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, recently revoked the licenses of 224 of the country’s 820 microfinance banks.
MICROCAPITAL BRIEF: Central Bank of Nigeria to Discontinue Issuance of Universal Banking Licenses, Introduce Three New Banking License Classes in 2011, Microfinance to Fall Under “Specialized” Category
The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, recently announced that in January 2011 it will introduce three new classes of banking licenses—for commercial banking, merchant banking and specialized banking—as well as discontinue the issuance of universal banking licenses.
MICROCAPITAL BRIEF: United Nations Development Programme Indicates 21% of Nigerian Adults Access Financial Services, Provides Support for Microfinance to Central Bank of Nigeria
According to a recent study by the United Nations Development Programme (UNDP), the development arm of the United Nations, a humanitarian organization promoting peace and better living standards, 21 percent of the Nigerian adult population – 18 million people – have access to financial services, with women and youth least likely to have access.
MICROCAPITAL BRIEF: Nigerian Tech Firms Systemspecs and Maxim-Pro to Begin Training Microfinance Institution (MFI) Staff on Integration of E-Payment Service, Remita
A release from the online edition of Nigeria’s Champion Newspaper reports that Systemspecs Nigeria Limited, a software development firm headquartered in Lagos, and Maxim-Pro, a Nigerian technology provider to financial firms, finalized arrangements to begin training for the staff of approximately 125 Nigerian microfinance banks that have recently begun offering Remita, an electronic payment (e-payment) service.
MICROCAPITAL BRIEF: Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Signs “Memorandum of Understanding” with Six Microfinance Banks
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has signed a “memorandum of understanding” with six microfinance banks in order to facilitate the provision of microcredit for small and medium-sized enterprises across the country. The six microfinance banks that will receive grant money from SMEDAN are Misau Microfinance Bank in Bauchi, Kada Microfinance Bank in Kaduna, Safeline Microfinance in Abuja, KRGY Microfinance Bank in Jigawa, Atlas Microfinance Bank in Abuja, and Fahimata Microfinance Bank in Kaduna.
MICROCAPITAL BRIEF: Lagos State Microfinance Institution (LASMI) in Nigeria Claims Its Loans Have Created Over 200,000 Jobs
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.
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: 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 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: 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: National Association of Microfinance Banks (NAMB) to Embark on “Enlightenment Campaign” to Increase Knowledge of Microfinance in Nigeria
The National Association of Microfinance Banks (NAMB), an association of microfinance institutions (MFIs) in Nigeria, recently announced in Lagos, Nigeria, that it intends to embark on a campaign to increase knowledge of microfinance among potential clients in Nigeria.
MICROCAPITAL BRIEF: Governor Uduaghan of Delta State Receives Central Bank of Nigeria’s Microfinance Award
The Central Bank of Nigeria (CBN) has given Governor Emmanuel Uduaghan of Delta State the country’s microfinance award. Governor Uduaghan received the award because his state’s microfinance initiative has seen the most promising results.
MICROCAPITAL BRIEF: National Association of Microfinance Banks of Nigeria (NAMB) Seeks Farmers’ “Cooperation” in Microfinance After Interest Rate Complaints
Jude Mathias, the President of the caretaker committee for microfinance institutions (MFIs) for the National Association of Microfinance Banks of Nigeria (NAMB), recently made a request for Nigerian farmers to “cooperate” with the sector’s current standards and regulations.