Lagos — National Association of Microfinance Banks of Nigeria (NAMFBIN) and Association of Microfinance Banks in Nigeria (AMBN), have signed a Memorandum of Understanding (MoU), to form National Association of Microfinance Banks (NAMB), which is the only lawful association empowered to conduct micro finance banking in the country.

At an extra-ordinary general meeting in Lagos, NAMFBIN and AMBN, with Central Bank of Nigeria (CBN) officials coordinating, they pledged to work towards the realisation of the MoU.

Representing NAMFBIN at the signing ceremony were Otunba Olatunde Olowu, and Mallam Ibrahim Sidi Bamalli, with Mrs. Olubunmi Lawson and Mr. Jude Nosagie, representing AMBN, while deputy director and Head, Microfinance Unit, CBN, Mrs. O.A. Ogunnaike and Assistant Director in the department, Mr. Ben Oriahi, represented the apex bank.

A five-man caretaker committee was appointed to supervise the new association until Friday, January 29, 2010, when an electoral committee would have been put in place to conduct elections for a new executive to emerge. The committee has Chief Matthias Omeh as Chairman, with the other four signatories as members.

According to the MoU, former transactions of the two former associations remain void and of no effect, where such actions are inimical to the interest and continuous existence of the new association.

The MoU states in part: "that by the formation of NAMB, all members of the former two associations shall by virtue of this deed of agreement, become registered members of NAMB in so far as they have proof of membership of any of the two defunct associations."

"That all assets of the two associations shall from the date of this agreement, become that of NAMB. That all registered microfinance banks in Nigeria have by the execution of this deed by the principal officers of the two former associations, agreed to the enactment of a new constitution which shall be the supreme authority of the microfinance association known as NAMB," among others.

Speaking at the occasion, former president of NAMFBIN, Otunba Olatunde Olowu, said microfinance banking was a very important sector of the economy that could provide the needed capital and economic growth in rural communities and praised the understanding and cooperation of CBN officials while guiding the two associations to the agreement.

Addressing the members, Ogunnaike said she was delighted to be part of the harmonisation of the two associations that control micro finance banking in the country.