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Microfinance Banks Loans to MSMEs Hit N214Bn — CBN

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Central Bank of Nigeria (CBN) on Friday said that total credit granted by Microfinance banks to Micro Small and Medium Enterprises (MSMEs) has hit N214.32 billion as at December 31, 2016.

Mrs Tokunbo Martins, director of Other Financial Institutions Supervision Department (OFISD), made this known at the 2nd Annual Professional Training organised for Lagos state Microfinance banks operators.

The seminar was organised by National Association of Microfinance Bank, Lagos Chapter (NAMBLAG) in conjunction with CA Compusult and Associates with the theme “Sustainable Microfinance Banking in Nigeria’’.

Martins also said the total assets of the sub-sector presently stood at N365.51 billion.

She said the figures above was grossly inadequate given the country’s population of 170 million that largely consisted of people at the bottom of the social pyramid that consisted a veritable targets of the banks.

She added, “the industry is highly concentrated and unevenly distributed with the top 10 of the 991 Microfinance banks accounting for 37 per cent to 40 per cent of the total loans, deposits and assets as at March 31, 2017.

“The sub-sector is also under capitalised with high non-performing loans and characterized by a high spate of distress and failures with many institutions particularly unit Microfinance banks technically insolvent or inactive.”

Martins said the bank has also expended 12 million dollars to register the 991 Microfinance banks and some finance houses with Credit Bureaux to enable them combat dubious customers.

Martins, who was represented by Mr Bassey Ekpo, a deputy Deputy Director in OFISD ,however, commended NAMBLAG for organizing the seminar.

“I also commend the association for considering it appropriate to hold the the brainstorming seminar outside Lagos to enable maximum concentration.

“The seminar is significant in three vital aspects, firstly, it holds on the heels of the recent economic recession that hits the country.

“Secondly, the theme this year underlines the need for stakeholders to re-tool and re-invent themselves in the face of economic challenges.

“Thirdly the seminar holds at the time of economic challenge in which Microfinance banks is expected to play critical role and contribute to the on –going economic recovery efforts.”

Mr Omololu Fatunbi, chairman of NAMBLAG, in his keynote address, commended CBN for its support to the banks.

Omololu said that NAMBLAG was not unaware of the many initiatives by the apex bank to push Microfinance banks to higher level.

The NAMBLAG boss said that the he would also put all efforts to ensure all the banks in the state meet the deadline for the registration of Bank Verification Number (BVN).

Reacting to performance of the sub-sector, he said the banks in Lagos state were ready to support the Federal Government’s effort to take the country out of recession. “By God’s grace, NAMBLAG will ensure that our services are extended to all Nigerians living in Lagos State.

 “We will penetrate the rural towns and villages to empower them for agricultural development.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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