NEWS WIRE: Nigeria: Central Bank “Expects” Contributions from Local Governors to Fund Deposit Insurance for Microfinance Institution Customers

Source: Nigerian Tribune.

Original article available here.

GBOLA SUBHAIR, NIGERIA, December 7 – The Central Bank of Nigeria (CBN) is set to meet all the 36 state governors in the country over the proposed micro-finance fund.

The Director, Other Financial Institution Department (OFID) of the CBN Mr. S.A Oni, disclosed this at the just-concluded Sixth Nigeria Deposit Insurance Corporation (NDIC) Business Editors and Finance Correspondents Workshop which took place in Calabar, the Cross River State capital.

Mr Oni, who said that the state governors were expected to contribute one per cent of their allocations to the micro-finance fund, stated that very soon the CBN and the NDIC would meet with the respective state governors to persuade them to contribute to the fund.

Speaking on why the NDIC extended Deposit Insurance Scheme (DIS) to the micro-finance banks, the Managing Director of the corporation, Alhaji Ganiyu Ogunleye, disclosed that the intention was to strengthen the financial safety net in Nigeria and promote financial stability.

Given that the depositors of the micro-finance banks are not as sophisticated as those of the universal banks, the NDIC boss disclosed that they required protection and education.

By way of protection, he said a deposit insurance coverage of N100,000 per depositor has been extended to them by the NDIC.

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