by Hio Kyeng Lee - Africa, Key Players, Regulation -

MICROCAPITAL.ORG BRIEF: Nigerian Microfinance Banks Pledge to Form Single Organization in Response to Supervision Crisis

Two Nigerian microfinance trade associations, the National Association of Microfinance Banks (NAMFBIN) and Association of Microfinance Bank in Nigeria (AMBN), have pledged to form the single organization titled, the National Association of Microfinance Banks (NAMB).  Under the supervision of the Central Bank of Nigeria (CBN), NAMB would become the only authorized organization to represent microfinance institutions.  Currently, Nigerian regulators have been overwelmed by the large number of microfinance institutions operating in the country and the microfinance banking industry has been in turmoil. By forming a single microfinance trade association, the hope is to promote greater adherence by members to a common set of business practices and to lessen the regulatory burden on the state thereby restoring confidence in the industry as a whole.

About CBN:
Central Bank of Nigeria (CBN) established in 1958, is Nigeria’s central banking authority. Some of the regulatory objectives of CBN as follows: to issue legal tender, to maintain the external reserves of the country, to promote monetary stability and a sound financial environment, and to act as a banker of last resort and financial adviser to the federal government. CBN website: http://www.cenbank.org/AboutCBN/mission.asp
 
 
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