Lagos - Fifteen out of the 450 microfinance banks in the south-west have indicated their interest to merge with the stronger ones, an official of the banks’ association said.
Olufemi Babajide, the South-West Zonal Chairman, National Association of Microfinance Banks (NAMBs), said that the merger was to beat the CBN’s directive that the banks should recapitalise by December.
Babjide told the News Agency of Nigeria in Lagos on Thursday that more of the banks were likely to merge before December.
“Fifteen banks are undergoing the process of merging at the association level.
“I believe other microfinance banks are also arranging for merger outside the association, but I do not have a figure.
“In April, 13 of the banks had opted to merge and now it has increased to 15 banks,” he said.
Babajide said that the parties involved had exhibited a high sense of maturity because the association wanted to ensure that none of its members went under.
The apex bank in 2011 directed the operators to raise their capital base or go under.
According to the recapitalisation framework, the operator of a unit, state or national microfinance bank must have a minimum capital of N20 million, N100 million and N2 billion, respectively.