MICROCAPITAL BRIEF: National Association of Microfinance Banks of Nigeria to Launch Money Market Operation in 2013

The National Association of Microfinance Banks (NAMB), a trade group of microfinance banks in Nigeria, announced that the Microfinance Money Market Operation (MMMO) is in its final stages of completion and will be launched by the first quarter of 2013. MMMO will allow microfinance institutions (MFIs) to access funds from other MFIs that have surplus funds. The association is working with Kakawa Discount House, a Nigerian firm that serves as the mediator between the Central Bank of Nigeria (CBN) and all other domestic banks in the trading of government bonds and treasury bills, to implement the project. The project is aimed at stimulating business activity by improving the liquidity of the microfinance sub-sector. MMMO is a separate project from the NAMB Lagos Trust Fund, which was launched in the third quarter of 2012 in an effort to shield MFIs from liquidity shocks. NAMB has 820 member MFIs as of 2011.

By Jennifer Young, Research Associate

About National Association of Microfinance Banks of Nigeria (NAMB)
The National Association of Microfinance Banks of Nigeria (NAMB) is a trade group of microfinance banks (MFBs) that merged with the Association of Microfinance Banks in Nigeria (AMBN) in 2009. As of April 2011, NAMB has 820 member MFIs. Its Lagos State Chapter has 180 members as of December 2011.

About Central Bank of Nigeria (CNB)
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 November 2011, CBN reports total assets of NGN 12.7 trillion (USD 80.8 billion).

Sources and Additional Resources

Business Day Story: “Microfinance Money Market Operation Begins in 2013”
http://www.businessdayonline.com/NG/index.php/microfinance/48065-microfinance-money-market-operation-begins-in-2013

MicroCapital Story: “MICROCAPITAL BRIEF: Nigeria’s National Association of Microfinance Banks (NAMB) Establishes Trust Fund to Provide Funds to Member Microfinance Banks (MFBs),” September 1, 2011.
https://www.microcapital.org/microcapital-brief-nigeria%E2%80%99s-national-association-of-microfinance-banks-namb-establishes-trust-fund-to-provide-funds-to-member-microfinance-banks-mfbs/

MicroCapital Story: “MICROCAPITAL BRIEF: Nigeria’s Microfinance Interbank Money Market Fails,” January 21, 2010.
https://www.microcapital.org/microcapital-brief-nigerias-microfinance-interbank-money-market-fails/

MicroCapital Universe Profile: National Association of Microfinance Banks of Nigeria (NAMB)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Association+of+Microfinance+Banks+of+Nigeria+%28NAMB%29

MicroCapital Universe Profile: Central Bank of Nigeria
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29

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