Lagos - Some operators of microfinance banks on Monday called on the Central Bank of Nigeria (CBN) to check the scope and nature of microfinance banking in Nigeria.
They told the News Agency of Nigeria (NAN) in separate interviews in Lagos that some parameters laid down by CBN were based on commercial banking formats.
According to them, these operational formats have undermined the uniqueness of microfinance banking in Nigeria.
Mr Badejo Adeboye, the Chairman of Molusi Microfinance Bank, Ijebu Igbo in Ogun, said that the CBN should reduce the organogram of the microfinance banks.
According to Adeboye, the organogram stipulated by the CBN for microfinance banking in Nigeria is expensive.
“We have the chairman, managing director, executive director, risk manager, ICT experts, among others. It costs huge money to retain these officers.
“We want CBN to device measures that will make the business less expensive and more effective,” Adeboye said.
Mr Tope Oloniniyi, the Executive Director of Infinity Microfinance Bank, Lagos said that there was the need for CBN to limit the operational cost of microfinance banks.
Oloniniyi told NAN that some of the parameters stipulated by the apex bank in terms of provisioning and recapitalisation were cumbersome.
“For instance, the deadline for the recapitalisation of microfinance banks is Dec. 31 and that is too short a period.
“We urge CBN to extend this capitalisation deadline to Dec. 31, 2013.
According to Oloniniyi, operators need to bring more investors into the sub-sector or they reinvest their profit because their initial capital may have been eroded.
Mr Olufemi Babajide, the Chairman of Unicredit Microfinance Bank, Lagos, said that the CBN should give operators some support to protect them.
Babajide said that local governments should be mandated to patronise microfinance banks.
“Also, teachers’ salaries, local government staff salaries and pensioners’ entitlements should be paid through microfinance banks
“Government’s loans, like agric loans, among others, should be disbursed through microfinance banks,” he said.