Lagos- Thirteen microfinance banks in the South-West have begun merger talks to beat the Dec. 31 deadline for them to recapitalise.
Olufemi Babajide, the South-West Zonal Chairman of the National Association of Microfinance Banks (NAMB), disclosed this to the News Agency of Nigeria (NAN) on Tuesday in Lagos.
He said the merger was aimed at ensuring that none of the existing microfinance banks went under as a result of the recapitalisation.
According to Babajide, the association is opting for merger or acquisition for members with low capital base.
He said that the association had contacted local and foreign investors to inject more funds into the sub-sector.
Babajide assured customers not to entertain fears over the exercise, adding that the banks would come out stronger at the end of the exercise.
NAN recalls that the CBN extended the deadline for the recapitalisation from Dec.31, 2012 to Dec. 31 this year to enable the weaker banks source for funds or merge.
In the recapitalisation framework, a unit microfinance bank operator is to recapitalise to the tune of N20 million.
State and national operators are to have minimum of N100 million and N2 billion capital, respectively.