W-HBS on panel at the First Annual Masterclass for Microfinance Banks

There is no doubt that micro, small and medium enterprises are the engine room for sustainable economic growth of every nation. This is why every responsible government makes serious effort to provide both the policy frame work as well as enabling environment that will make businesses thrive.

It is with this in mind that successive administrations in Nigeria have introduced different programmes, especially, the National Poverty Eradication Programme (NAPEP) aimed at eradicating poverty and strengthening the economic power of the poor masses of Nigeria.

To complement this initiative and bring banking services, including provision of micro – credit to micro, small and medium – sized businesses as well as the masses at the bottom of the pyramid, the Central Bank of Nigeria licensed Microfinance Banks to play this statutory role.

With the emergence of over eight hundred and fifteen (815) licensed microfinance banks in Nigeria made up of six (6) State microfinance banks and eight hundred and nine (809) unit microfinance banks, and over eighty (80) yet to be licensed but with approval-in-principle from the Central Bank of Nigeria, Nigeria is well on her way to having over one thousand microfinance banks. This development makes Nigeria the potentially biggest microfinance market in Africa, yet, the statutory roles of micro finance banks is far from being realized, due largely to insufficient operational capital  and other administrative  deficiencies.

As a result of the above state of affair, the Central bank of Nigeria, the apex regulatory body has resolved to restructure and reposition the MFBs. Without any doubt, some of the MFBs will be shut down while some may be forced to merge. W-HBS was then invited as a panelist to discuss the possible options for recapilization and other add-on services that could be offered by forward thinking MFB that wants to survive and thrive.






Comments

Aliyu Abubakar says:

It is a very nice idea but the problem is the risk involved. I am a WAP beneficiary under NYSC WAP scheme. I am in to Animal husbandry and the capital that was given to me was a mere #250,000 and my discharge certificate the collateral, now i am finding it difficult to get a job and my animals are dying do to lack of running capital. What can i do?