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The business of lending in Nigeria has evolved from the traditional system to a more flexible and digitally enabled system for a faster and more convenient process.
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Published 28 April 2021
The House of Representatives has urged the Central Bank of Nigeria to suspend the ongoing recapitalisation exercise for microfinance banks in the country until the economy gets better.
At the plenary on Wednesday, the House unanimously adopted a motion moved by the Vice Chairman of the House Committee on Finance, Saidu Abdullahi, titled ‘Urgent Need for the Central Bank of Nigeria to Suspend the Deadline for Recapitalisation of Microfinance Banks.’
Consequently, the House urged the CBN to “suspend the planned recapitalisation program until the economy stabilises and considered safe for a new deadline to be fixed.”
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This follows a motion by Saidu Abdullahi, vice-chairman of the house committee on finance, during plenary on Wednesday.
In October 2018, CBN reviewed the minimum share capital requirement of the three categories of MFBs: Unit MFBs from N20 million to N200 million; state MFBs from N100 million to N1 billion; and national MFBs from N2 billion to N5 billion.
The following year, it reviewed the requirement with a view to ensuring continued operations of these banks in rural, unbanked and underbanked areas of the economy.
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In April 2020, the apex bank revised the deadlines for MFBs recapitalisation due to the COVID–19 pandemic impacts.