Islamic Centre appeals to CBN for microfinance banks coverage overview

The Worldwide Centre for Islamic Tradition and Schooling (ICICE) has appealed to the Central Financial institution of Nigeria (CBN) to overview the current improve of minimal capital base of Microfinance Banks.

Director-Basic of ICICE, Dr Kabir Usman, in a letter dated February 6, written to the CBN Governor, Mr Godwin Emefiele, described the CBN determination as “injurious to the business.”

He said that the suggestions from a survey performed by the centre on the coverage reveals that majority of the stakeholders are unhappy with the choice.

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“Elevating the capital base of microfinance banks by 1000 per cent as contained within the CBN’s round issued on October 22, 2018 reveals that majority of the stakeholders are discontented with the choice.”

He listed the challenges and dangers related to the operations of the microfinance banks to incorporate capital base, company governance and compliance points, lack of information by  beneficiaries and insider abuses.

“Enhance within the capital base from N20 million to N200 million won’t deal with the challenges both. We advocate a overview of the capital base from the present N20 million to N50 million, obligatory primary coaching for all microfinance banks key workers as a pre-condition to the issuance of working license.

“We advocate strict compliance to company governance within the organisational construction of the banks and common town-hall assembly with the beneficiaries at their localities,” Usman stated.

The Information Company of Nigeria (NAN) reported that the letter was copied to the Minister of Finance and the Managing-Director of the Nigerian Deposit Insurance coverage Company.

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