The Chairman of the Lagos chapter of the 820-member National Association of Microfinance Banks of Nigeria (NAMB), Mr Olufemi Babajide, reportedly disclosed that the Central Bank of Nigeria (CBN) ordered microfinance banks to implement International Financial Reporting Standard (IFRS) by March 2013. The IFRS Foundation is a nonprofit organization working to establish IFRS as a set of globally compatible financial protocol. [2]
Mr Babajide argued that compliance with IFRS would be a major change for microbanks. He explained that the motive is to enhance market discipline, adding, “Until recently, that common accounting language has been a missing link.”
By Amira Berrada, 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: 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 9.77 trillion (USD 61.9 billion).
Sources and Resources:
[1] http://leadership.ng/nga/articles/20337/2012/03/26/microfinance_banks_se…
[2] http://www.ifrs.org/The+organisation/IASCF+and+IASB.htm
MicroCapital.org article, March 19, 2012, “MICROCAPITAL BRIEF: Nigeria’s National Association of Microfinance Banks (NAMB) Aims to Lower Cost of Borrowing for Microfinance Institutions (MFIs)” https://www.microcapital.org/microcapital-brief-nigerias-national-associa…
MicroCapital.org article, June 28, 2011, “MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Looking to Set New Capital Base Requirements for Microfinance Banks (MFBs)” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-c…
MicroCapital.org article, March 22, 2011, “MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Analyzes Profitability of Microfinance Institutions (MFIs)” https://www.microcapital.org/microcapital-brief-microfinance-information-…
MicroCapital.org article, April 20, 2010, “MICROCAPITAL BRIEF: Regulation Restructuring by Central Bank of Nigeria (CBN) May Harm Microfinance Banks”
https://www.microcapital.org/microcapital-brief-regulation-restructuring-…
MicroCapital Universe Profile for National Association of Microfinance Banks of Nigeria (NAMB): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nat…
MicroCapital Universe Profile for Central Bank of Nigeria: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cen…
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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