NDIC offers lifeline to troubled microfinance institutions in Nigeria
The Nigeria Deposit Insurance Corporation (NDIC) has revealed that it has prepared a bailout package for microfinance banks (MFBs).The Nigeria Deposit Insurance Corporation (NDIC) has revealed that it has prepared a bailout package for microfinance banks (MFBs).
corporation's Managing Director Umaru Ibrahim said during a conference in Abuja this week that the bailout would come in the form of financial assistance that would attract a minimum interest rate, Premium Times reports.
"We need to extend helping hands by way of financial assistance to deserving MFBs, especially those having liquidity problems," he said.
This announcement comes a few weeks after the Central Bank of Nigeria (CBN) extended the deadline for the implementation of the Revised Microfinance Policy Framework to December 31st 2013.
CBN official Olufemi Fabamwo told This Day newspaper that the decision to extend the deadline was "to allow more time for capital raising and business combination options towards meeting the capital requirements for each category of
and for rationalising the existing branches".
The revised guidelines have been designed to help resolve many issues faced by the sector, such as capital requirements and the uneven spread of MFBs in the country.