Nine micro-finance banks lose licences

Posted by Justina Asishana, Minna | 20 October 2018 | 1,059 times

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•CBN headquarters in Abuja

Nine out of the 34 micro finance banks in Niger state have lost their licences for banking, the North Central Secretary of the National Association of Micro finance Banks, Mr. Sado Daniel. 

According to him, these micro finance banks lost their licences because they fell short during the regulation exercise done by the Central Bank of Nigeria. Daniel disclosed this at the commissioning of the Federal Polytechnic Bida Micro Finance Bank in Bida. 

He said that one of the family tors that attributed to the fall of the micro finance banks in the state was due to corporate governance urging the management and staff of the bank to adhere strictly to the rule of the game. 

“Banks do not die, people kill them. Please do not kill the Federal polytechnic Bida Micro Finance Bank. Ensure you adhere strictly to the rules of the game. “ 

A representative of the Central Bank of Nigeria in Minna, Hajia Hassana Mohammed who also spoke on the failure of banks said that insider abuse is another huge factor that contributes to the failure of micro finance banks across Nigeria.

She urged business people to stop using loans to get married and other things that are not business related, “until we stop using business money and loans to get married and buy clothes, businesses in the country will not progress “

Hassana further called on the people to work towards ensuring that all loans collected are paid back to enable them benefit for more urging them to take opportunity to the loans being made available by the federal government through the CBN. 

In his address, the Rector of the Polytechnic and the Chairman Board of Directors of the Federal polytechnic micro finance banks disclosed that the micro finance banks is opening with a capital base of N20 million and aims to increase it to N50 million by 2019. 

He stated that the micro finance banks is to make banking transactions easier for students and staff of the school community and ease the cashless policy of the CBN

 Sourced from The Nation report       

Source: News Express

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