Nigeria: CBN to release report on microfinance banks
By Akinola Ajibade, The Nation
The Central Bank of Nigeria (CBN) plans to release the report on the performance of the 671 microfinance institutions (MFIs) in the country before the end of the year, The Nation has learnt.
The report, which is expected to appraise the sub sector, will provide information on the performance of the banks, their capital base, participation in the Rural Finance Institutions Development Programme (RUFIN)and loan recovery efforts, among other initiatives.
Sources close to the apex bank said the report on the activities of the MFIs would be completed by the end of this year and presented to the public. The source, who spoke on condition of anonymity, said the report would capture how the banks have been able to service their 346,266 registered customers, among other issues.
Speaking on the issue, a former director, Budget and Supervision, CBN, Titus Okunronmu, said such a report is timely because the problems facing some of the institutions. Okunronmu said CBN’s decision to schedule the report for the end of the year is so as to enable it get enough information about the activities of the institutions.
He said: “The apex bank collects information on banks throughout the year. I think the report is going to say a lot about the operations of the MFIs, their capacity for growth to meet the yearnings of depositors and loan portfolios, among other issues. It is good for the public because the report will expose the MFIs to the public. Through the report, the members of the public will know whether to continue doing business with some of the banks. It is a good information that should be made readily available to the people.”
He said the decision to release the report is good for the sub-sector, noting that such a report is difficult to come by because it is highly investigative.
“If they tell us the position of the banks, many would run away. But they don’t normally give such information until there is crisis.
The report will tell us the money the MFIs are having, and how they are using the money. It will tell us whether the money is well spent or not. From experience, MFIs are ready to give loans to customers,” he added.