Leadership (Abuja)
Aminu Imam
31 July 2008
Controversy now trails the formation of Microfinance Banks' (MFBs) association, as operators are divided on the issue of having a market association for MFBs.
Our correspondent gathered that while some believe the Committee of Microfinance Banks In Nigeria (Comfbin), a body initiated by the Central Bank of Nigeria (CBN) to oversee the affairs of MFBs, is capable as the umbrella body for microfinance banks, others say there should be another association in the sub sector.
LEADERSHIP's investigation shows that aside Comfbin, some operators are proposing to have two other associations. The two associations they are proposing are; Association of All Microfinance Banks and National Association of Microfinance Banks. A credible source revealed that the Association of All Microfinance Banks is going to encompass all newly licensed microfinance banks, while the National Association of Microfinance Bank is going to comprise only converted community banks. However, operators in the industry are divided on the matter, calling on the CBN to intervene.
Commenting on the development, Mrs. Ifeoma Ana, the Managing Director, Elim Microfinance Bank said that so far, there is the Committee for Microfinance Banks In Nigeria (Comfbin).
there is no need to have another association, saying that those who are proposing that, are doing it for their selfish interest. Comfbin, she said, should be like the bankers committee, whereby operators meet quarterly to deliberate on issues affecting MFBs and the way forward.
According to her, 'the conventional banks have only one association which is Bankers Committee, so, I don't see any reasons for us (MFBs) to have more than one association. Comfbin is capable enough to regulate the industry'.
She stated that though the issue was raised at a seminar organised by the CBN for MFB operators in Abuja in April, there were mixed reactions on the issue as there were over 850 MFBs operators at the event thus making the event rowdy to decide on the matter. She however opposes having more than one regulator in the sub sector adding that this development would not usher in a well coordinated microfinance environment.
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