The CBN, which had NGN 5.7 billion (USD 45.6 million) in total assets as of November 2006, has stipulated that full certification to operate as a microfinance institution is contingent on the bank fulfilling a set of conditions. Some such conditions include submitting the names and curriculum vitae of the management team to the CBN for approval, upgrading the computer system’s management software, and submitting a true copy of the certificate of incorporation of the MFI issued by the Corporate Affairs Commission of Nigeria, a federal body which regulates the formation and management of private companies. In addition, once formed, the OOU microfinance bank must register with the Microfinance Bank Association of Nigeria, a network of Nigerian microfinance institutions (MFIs).
Currently, there are only eight Nigerian microfinance providers that report to the Microfinance Information eXchange (MIX Market). Based on their reports, the combined gross loan portfolio is just under USD 12 million, and there are about 250,000 active borrowers in the country. The CBN estimates that at least 40 million Nigerians may require microfinance services.
By Elizabeth Nelson
Additional Resources:
AllAfrica.com: "Nigeria: Onabanjo Varsity Bank Moves Up"
Central Bank of Nigeria (CBN)
HEAD OFFICE - ABUJA
Office Address: Zaria street, Abuja
Postal Address: P.M.B 0187, Garki Abuja
Tel: +234 9 2342132 4
Central Bank of Nigeria: Data and Statistics: Assets and Liabilities
Olabisi Onabanjo University
Corporate Affairs Commission of Nigeria
"New Vista Opens in Banking for the Poor.", by B. Fajemirokun, published 2007, accessed through Microfinance Gateway.
Nigeria Business Info: "Central Bank of Nigeria"
MicroCapital article, August 1, 2007: "Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Microfinance Banks Association of Nigeria Partner Together in Nigeria's Microfinance Sector"
The MIX Market: Nigeria, MFIs
Bloomberg.com: Currency Calculator
