Originally published: January 18, 2008
Source: allAfrica.com
The Central Bank of Nigeria (CBN) announced that 600 community banks have successfully transformed into microfinance banks (MFBs) with the Central Bank's approval. This is in addition to 107 new MFBs already approved by the apex bank.
Professor Chukwuma Soludo, governor of CBN said that the revised framework of microfinance operation in Nigeria would be unveiled in due course by the bankers committee in collaboration with states and other organizations willing to partner towards the growth of microfinance business. He stated that the framework provides for each state/local government to devote at least 1% of its total budget to microfinance.
Soludo also expressed dissatisfaction with the distribution of MFIs across Nigeria. He regretted that some states have as few as four MFIs in their domain, which according to him, is unacceptable if poverty is to be eliminated. CBN plans to publish the distribution of microfinance banks in the country to highlight areas with the least concentration.
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