Abuja — Some operators of Microfinance Banks (MFBs) want the Central Bank of Nigeria (CBN) to extend the date of re-capitalization exercise in the subsector.
The Managing Director of OPENGATE microfinance bank Nureni Yusuf said this in an interview with Daily Trust.
He said: "In as much as the policy is good and welcome, we still want to appeal to the apex bank to give a grace of about two to three years to capture the payment."
The Community base MFBs presently has a capital base of N200 million while those that operates at the state level has a capital base of N1 billion.
An Abuja based financial analyst Mr. Jacob Ajala said CBN should handle the recapitalization exercise in the MFBs with care.
"Central Bank should announce to Nigerians what level it wants to increase the capital base of these institutions to and should give the banks ample time - say a the minimum of 24 months from the date of the announcement", he said.
The Acting Director in charge of other financial institution department of the CBN Olufemi Fabanwo advised the microfinance banks last month to increase their capital base above the present N20 million to N200 million.
He said recapitalization is necessary due to the challenges facing the country's financial institution.
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The re-capitalization should be fast because every individuals fill that it's an opportunity to make quick money from this depositors who are looking for a way to get small loan to expand their business. So after operating for some months they will fold up and cart away with peoples money. It's also very important that CBN should be fast with the way they handled the commercial banks audit. Re-capitalization should be done NOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!