Asset base rises for Nigerian MFBs

Dec 13, 2010

Nigerian microfinance banks (MFBs) have grown their asset base by over 100 billion Nigerian naira (€499 million) in the past four years, despite a dip in the number of such institutions operating in the country.

According to new figures from the Central Bank of Nigeria, assets held by such intuitions now stand at 159 billion naira, up from 55 billion in 2006, the Daily Trust reports.

However, there has been a fall in the amount of microfinance providers, down to 850 from 950 in December 2009.

Speaking to the news source, Alhaji Umaru Ibrahim, Acting Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), said MFBs are currently facing a number of problems, which the corporation is working to resolve.

He explained it is drawing up a framework that will address issues such as the high operating costs associated with running an MFB and ineffective regulation.

According to the Nigerian Tribune, Mr Ibrahim has stated the NDIC will begin another round of auditing microfinance banks in the country next April.