A group of microfinance institutions (MFIs) across Nigeria, including microfinance banks, co-operative societies and NGOs, has joined together to form the Association for the Survival/Sustenance of Microfinance Institutions. The primary goal of the association is to facilitate funding from international financial institutions such as the International Monetary Fund (IMF) and the International Finance Corporation (IFC). According to the association’s spokesperson, Pastor Glory Abrefera, the union is largely a response to the “weak national economy and the recent banking reforms, which have brought about the collapse of almost 75 percent of licensed MFIs in Nigeria in the past 8 months” [1]. A BusinessDay editorial, which is a daily business newspaper in Nigeria, quoting numerous anonymous sources brings up additional concerns that regulation restructuring by the Central Bank of Nigeria (CBN) may further harm the microfinance sector [3]. The number of participating MFIs is unknown, and there is no contact information available for the Association.
By Conner Brannen, Research Assistant
Additional Resources:
[1] MICROCAPITAL BRIEF: Nigeria Deposit Insurance Corporation (NDIC) Commences Nationwide Investigation of Microfinance Institutions (MFIs), April 13, 2010, https://www.microcapital.org/microcapital-brief-nigeria-deposit-insurance-corporation-ndic-commences-nationwide-investigation-of-microfinance-institutions-mfis/
[2] MicroCapital Universe: Central Bank of Nigeria (CBN): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
Bibliography:
[1] Vanguard: “Microfinance Institutions Move to Save Sector.” Amaka Agwuegbo, April 27, 2010, http://www.vanguardngr.com/2010/04/27/microfinance-institutions-move-to-save-sector/
[2] MICROCAPITAL BRIEF: Regulation Restructuring by Central Bank of Nigeria (CBN) May Harm Microfinance Banks, April 20, 2010, https://www.microcapital.org/microcapital-brief-regulation-restructuring-by-central-bank-of-nigeria-cbn-may-harm-microfinance-banks/
[3] BusinessDay: “Proposed Universal Banking Unsettles Microfinance Banks,” John Omachonu and Hope Moses-Ashike, April 14, 2010, http://www.businessdayonline.com/index.php?option=com_content&view=article&id=10085:proposed-universal-banking-unsettles-microfinance-banks-&catid=1:latest-news&Itemid=18
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