The Central Bank of Nigeria (CBN), the country’s banking authority, reportedly has amended its microfinance guidelines to permit state governments to establish microfinance banks. The new guidelines, however, require each state to have a timeline for exiting the business to allow the bank to become independent.
CBN has also signed agreements with the state governments of Beneu, Borno and Cross River to establish entrepreneurship development centres (EDCs) in an effort to alleviate poverty and support job creation. As of September 2012, the three EDCs located in Kano, Lagos and Onitsha had trained approximately 39,000 people and reportedly created 7,500 jobs.
For the year 2011, 71 Nigerian microfinance institutions (MFIs) report to the US-based nonprofit Microfinance Information Exchange (MIX) deposits of USD 119 million, 1.2 million depositors, 978,000 active borrowers and loans disbursed of USD 186 million.
By Brendan Millan, Research Associate
About Central Bank of Nigeria (CBN):
Central Bank of Nigeria (CBN), established in 1958, is Nigeria’s central banking authority. As defined by the 1958 Act of Parliament that created CBN, its statutory mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government.” As of July 2010, CBN reports total assets of NGN 7.37 trillion (the equivalent of USD 48.6 billion).
Sources and Additional Resources:
[1] Leadership: “CBN Authorises State Govts to Establish Microfinance Banks”, http://leadership.ng/nga/articles/45138/2013/01/16/cbn_authorises_state_govts_establish_microfinance_banks.html
MicroCapital.org story, January 18, 2013,”Nigeria’s Bank of Industry (BOI) to Set Up Microcredit Fund for Microentrepreneurs in Effort to Promote Financial Inclusion”, https://www.microcapital.org/microcapital-brief-nigerias-bank-of-industry-boi-to-set-up-microcredit-fund-for-microentrepreneurs-in-effort-to-promote-financial-inclusion/
MicroCapital.org story, January 3, 2011, “Savings Government of Nigerian State of Ondo and Bank of Industry (BOI) Disburse $13m to Microfinance Scheme”, https://www.microcapital.org/microcapital-brief-government-of-nigerian-state-of-ondo-and-bank-of-industry-boi-disburse-13m-to-microfinance-scheme/#more-8990
MicroCapital.org story, August 1, 2010, “Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Microfinance Banks Association of Nigeria Partner Together in Nigeria’s Microfinance Sector”, https://www.microcapital.org/microcapital-story-small-and-medium-enterpri…
MicroCapital Universe Profile: Central Bank of Nigeria (CBN),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cen…
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