MFBs join Reps’ call to CBN to halt recapitalisation | Dailytrust

MFBs join Reps’ call to CBN to halt recapitalisation

The Central Bank of Nigeria (CBN)

The National Association of Microfinance Banks (NAMB) has joined the House of Representatives’ recent call on the Central Bank of Nigeria (CBN) to suspend the April 2021 deadline for the recapitalisation of microfinance banks (MFBs).

It came after the adoption of a motion on the ‘Urgent Need for the Central Bank of Nigeria (CBN) to suspend the Deadline for Recapitalisation of Microfinance Banks’ moved by Hon. Saidu Musa Abdullahi (APC – Niger state).

The lawmakers said the suspension was imperative as a NAMB survey showed that out of 874 licensed MFBs, about 612 may be adversely affected by the re-capitalisation policy.

But in a statement by NAMB, its National President, Alhaji Yusuf Ahmed Gyallesu, said: “NAMB sees the legislators’ advice to the apex bank as desirable for the MFBs’ subsector as it will allow licensed microfinance banks to re-strategise on their recapitalisation plans and by so doing better position them as the vanguard of the National Financial Inclusion Strategy (NFIS) drive to alleviate poverty at the grassroots.”

While NAMB commended CBN for its sustained policy measures to strengthen MFBs, Gyallesu said: “We shall be ready to work with the monetary authority’s leadership on how best to reschedule the recapitalisation plans such that the implementation of the policy will ensure a win-win position for all stakeholders and the nation’s economy in the long run.”

Under the revised template, Unit Microfinance Banks’ minimum capital requirement was raised from N20m to N200m; state MFBs’ from N100m to N1 billion and national MFBs from N2bn to N5bn.