Consistent with news reported by MicroCapital in January 2011, Nigeria’s federal government and the Central Bank of Nigeria (CBN) still plan to create a Microfinance Development Fund (MDF) with the intent of increasing financial inclusion and improving the operations of microfinance institutions. Sanusi Lamido Sanusi, governor of CBN, reportedly spoke about the plans at the recent sixth Annual Microfinance Conference and Entrepreneurship awards in Abuja, Nigeria, saying that MFD will be established in 2012 and will include both commercial and social components that will enhance its operations and outreach. The fund will also aim to improve access to affordable and sustainable sources of finance, namely microfinance institutions. At the time of the original announcement of MDF, it was anticipated to have a budget of NGN 54 billion (USD 338 million).
According to US-based nonprofit Microfinance Information Exchange, there were 24 microfinance institutions in Nigeria with a gross loan portfolio of USD 84.4 million disbursed to 482,343 borrowers as of 2010.
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 July 2011, CBN reports total assets of NGN 8.37 trillion (the equivalent of USD 54 billion).
By Charlotte Newman, Research Associate
Sources and Additional Resources:
Vanguard: “FG to Establish Micro-Finance Fund,” http://www.vanguardngr.com/2012/02/fg-to-establish-micro-finance-fund/
MicroCapital.org story, January 9, 2012, “MICROCAPITAL BRIEF: Nigeria’s National Association of Microfinance Banks (NAMB) Asks Government Not to Set Up Microlenders, “https://www.microcapital.org/microcapital-brief-nigerias-national-association-of-microfinance-banks-namb-asks-government-not-to-set-up-microlenders/
MicroCapital.org story, January 27, 2011, “MICROCAPITAL BRIEF: Nigeria Federal Government Supports Central Bank of Nigeria (CBN) to Establish Microfinance Development Fund,” https://www.microcapital.org/microcapital-brief-nigeria-federal-government-supports-central-bank-of-nigeria-cbn-to-establish-microfinance-development-fund/
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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