By Samson Echenim

Tuesday, 25 Jan 2011

The National Association of Microfinance Banks has said it is considering the formulation of “certain” modalities for members to access the N45bn earmarked by the Central Bank of Nigeria to support and reconsolidate the sub-sector.

The Acting Chairman of NAMB, Lagos State Chapter, Mr. Olufemi Babajide, who said this in an interview with our correspondent on Monday, also disclosed that the association had set up various committees to establish a platform for a new and sustainable era of microfinance banking in the country.

Babajide, who is also the chief executive officer of Unicredit Microfinance Bank Limited, said a committee was working to establish the modalities. He noted that such modalities would be in addition to the CBN’s access policy on the fund.

He explained that there were already in existence, all the necessary input, except funding for the microfinance subsector to begin to grow.

He said, “For effective utilisation of the fund and its return, we are going to adopt refinancing as one of the internal modalities. We will also disburse the fund for the purpose of financing existing or identified projects and the issuance of debentures for long-term purposes.”

According to Babajide, the association has also set up a technical committee to work out ways by which it can sponsor a private bill seeking the legalisation of the disbursement of one per cent government revenue to develop small and medium scale enterprises.

The CBN is meeting with microfinance bank operators on Monday.

Babajide said the different committees set up by NAMB would discussed several appropriate issues with the CBN at the Monday meeting, which he hoped would mark fresh beginning for many of the microfinance banks.

“Over a hundred banks, whose licences were withdrawn by the CBN, and later awarded licence on principle, will regain their final licences on Monday,” he said.

Considering the number of Nigerians without access to banking, which the CBN put at 67 per cent, Babajide said, only microfinance banks could provide financial services for the under-banked.

“The number of Nigerians to cover is large and we do not access to fund. A number of us have met investors, who have also invested but this is still not enough,” he added.

Source: Punch