The Arewa Consultative Forum (ACF) has faulted the Central Bank of Nigeria (CBN) over its new capital requirement policy for Microfinance Banks saying it will see to the demise of most of the Microfinance Banks operating in the north.
The ACF, in a letter of complaint to the CBN dated January 29th 2021 critisised the CBN for “excluding” the region from critical aspects the nation’s financial life adding that only 15 per cent of the 310 Microfinance Banks presently operational in the region will survive the policy.
The letter which was signed ACF Chairman, Audu Ogbeh observed that Northern Nigeria which is the most populous region in the country is “unserved and underserved.”
Ogbe, a former Minister of Agriculture stated that the development will further exclude a good part of the north from financial services and inclusion, “compound the negative effects of the second wave of COVID19, aggravate the poverty level of the north and weaken the insecurity of the region.”
He also criticised the April 2021 closing date for the recapitisation of the Microfinance Banks and suggested April 2025 instead saying it will give the banks more time to source for the funds needed at this time of economic depression.
The Chairman of the Forum said Microfinance Banks which are looked upon to serve the majority of the people are not properly positioned to do so.
“Only one government owned Micro Finance Bank which is fairly new in the business is being patronized by CBN to disburse intervention funds, thereby neglecting and denying other dully licensed Microfinance Banks across the country the privilege and opportunity to participate in this noble cause,” the letter stated.
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