The Central Bank of Nigeria (CBN) late Thursday reported that the total number of Micro Finance Banks (MFBs) licensed to provide micro finance services nationwide stood at 898 on February 13, 2019.
As at February last year, the number of microfinance banks in the country stood at 1,008, representing a growth of three percent when compared with the operating MFBs in 2016.
Only last year, the apex bank licensed additional 28 MFBs in 15 states in furtherance of its National Financial Inclusion Strategy (NFIS) drive targeted, among other objectives, at ensuring that financial services get to the un-banked or financially excluded people in rural communities.
The latest figures indicated that about 110 MFBs may have closed shops over the past year.
It would be recalled that the Central Bank Governor, Godwin Emefiele, hinted that the apex bank, in collaboration with the Bankers’ Committee and the Nigerian Postal Service, planned to establish a national microfinance bank to create better access to credit.
According to him, the proposed national MFB would explore the existing NIPOST’s offices across about 774 local government areas to commence operations when established.
He explained: “We have called on NIPOST and they have agreed to join us in this. They would provide their facilities in 774 local government areas and this would be their own contribution by way of equity into the establishment of the national MFB.
“We would provide the infrastructure and this MFB would be available in 774 local governments across the nation”, Emefiele added.
On why NIPOST remains key to taking the proposed MFB to the grassroots, the CBN governor said that the proposed MFB would partner with NIPOST because of its many locations.
This is even as he explained that the apex bank-owned Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) would be expected to bring its experience in financing low-income entrepreneurs and de-risking credit originated by the national MFB by providing guarantee in line with its mandate.
