Governor Sanusi Lamido Sanusi of the Central Bank of Nigeria, the apex financial authority of the country, recently announced the bank’s plans to establish a database of microfinance banks in Nigeria as part of efforts to regulate the microfinance sector [1]. Speaking at a meeting of Non-Bank Micro Finance Institutions of Nigeria (ANMFIN) in Lagos, he reportedly reaffirmed the bank’s commitment to the growth of microfinance institutions and emphasised the involvement of women in microfinance schemes. “Microfinance banks play significant roles in the economic transformation of this great country. When you empower women, you empower a whole family and that is what microfinance banks should be about.”
As of 2011, the Central Bank of Nigeria (CBN) reported total assets of NGN 9.77 trillion (USD 61.9 billion). CBN has over the years performed some major developmental functions, focused on all the key sectors of the Nigerian economy (financial, agricultural and industrial sectors). CBN is also charged with the responsibility of regulating Microfinance Institutions under the amended Microfinance Policy, Regulatory and Supervisory Framework for Nigeria.
The 71 Nigerian Microfinance Institutions (MFIs) reporting 2011 data to the US-based nonprofit data provider Microfinance Information Exchange (MIX) held an aggregate gross loan portfolio of USD 186 million disbursed to approximately 977,297 borrowers.
By Chioma Okwudiafor, 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”. CBN has 37 branches across Nigeria and staff strength of 5995. As of November 2011, CBN reports total assets of NGN 9.77 trillion (USD 61.9 billion).
Sources and Additional Resources:
[1] Vanguard Newspaper Story: CBN collates database for microfinance banks
http://www.vanguardngr.com/2012/09/cbn-collates-database-for-microfinance-banks/
MicroCapital Universe Profile: Central Bank of Nigeria
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
MicroCapital.Org Story: August 12, 2012, MicroCapital Brief: Microfinance Development Fund of Nigeria Will Seek to Increase Women’s Access to Financial Services by 15% Per Annum https://www.microcapital.org/microcapital-brief-microfinance-development-fund-of-nigeria-will-seek-to-increase-womens-access-to-financial-services-by-15-per-annum/
Microcapital.Org Story: April 23, 2011, MicroCapital Brief: Central Bank of Nigeria (CBN) Governor Explains Delay in Microfinance Regulatory Framework
https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-cbn-governor-explains-delay-in-microfinance-regulatory-framework/
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