MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Reports Microfinance Loan Disbursements Increased 24% in First Half of 2011

The Central Bank of Nigeria (CBN), Nigeria’s banking authority, has released an economic report indicating that microfinance banks (MFBs) have increased their loan distribution volume in the first half of the year by 24 percent to NGN 65.5 billion (USD 411 million) compared to NGN 52.9 billion for the period ending December 2010. According to the report, “the funds were sourced mainly from increases in deposit liabilities (NGN 9.3bn) [USD 58.5 million], paid-up capital (NGN 3.0bn) [USD 18.8 million] and long-term loans (NGN 2.8bn) [USD 17.6 million]; and were used mainly to increase loans and advances (NGN 12.6bn) [USD 79 million], balances with banks (NGN 2.8bn) [USD 17.6 million] and short-term investments (NGN 2bn) [USD 12.5 million].” [1] The report also indicates that MFBs’ total assets and liabilities increased 9.9 percent to NGN 187 billion (USD 1.1 billion) from December 2010 to June 2011.

The report can be found at: http://www1219.cenbank.org/out/2011/publications/reports/rsd/2011%20cbn%…

By Cameron Milani, Research Associate

About Central Bank of Nigeria: The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the 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 2011, CBN reports total assets of NGN 8.37 trillion (the equivalent of USD 54 billion).

Sources and Additional Resources:

[1] Vanguard, “MFBs Disburse N66bn in Six Months,” http://www.vanguardngr.com/2011/10/mfbs-disburse-n66bn-in-six-months/

MicroCapital.org, October 4, 2011: “MICROCAPITAL BRIEF: Central Bank of Nigeria Approves New Capital Base Requirements for Microfinance Banks (MFBs), MFBs Await Capital Verification Results,” https://www.microcapital.org/?s=nigeria&x=0&y=0

MicroCapital Universe, Central Bank of Nigeria: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cen

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

 

 

 

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