Nigerian MFBs to get improved access to liquidity

May 19, 2010

Microfinance banks (MFBs) in Nigeria are set to get increased access to liquidity following the release of secured funds worth around 60 billion naira (€320 million) on May 17th, according to Business Day.

The cash will help financial institutions in the country take advantage of long-term debt funds lasting up to a decade. Africa Capital and Business Support (ACBS) has secured the money in partnership with Suisse Bank of London and the move is set to be formally announced at the inaugural Annual Masterclass for Microfinance Banks next month, which has been organised by ACBS and the news source.

Vice-Chairman of ACBS Nigeria Benjamin Aduli said the interest rate on the finance will remain under ten per cent, while the money available should be sufficient to guarantee liquidity for MFBs in the long-term. Last month, Nigeria's National Security Adviser Aliyu Gusau criticised attempts to overhaul the financial sector in the country, with Reuters quoting him as stating the central bank has "damaged economic activity in the banking sector".