Adult population access to MFBs swells by 4.6m

Monday, December 10, 2012

The number of adult population that have a microfinance bank account rose to 4.6 million or 5.2 percent in 2012 as against 3.2 million or 3.8 percent in 2010, representing 1.2 million increase, according to Enhancing Financial Innovation & Access (EFInA)’s access to financial services in Nigeria 2012 survey report.

A further breakdown shows that 56.4 percent out of the 4.6 million adult population are male and 43.6 percent are female while in 2010, 57.9 percent of 3.2 million adult population were male and 42.1 percent were female.

Analysts attribute the noticeable increase to restored confidence in the sub-sector after the 2010 tsunami that engulfed about 103 microfinance banks.

In 2010, target examination was conducted on 820 MFBs across the country by the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) and a total of 224, representing 27 percent of MFBs were found to be ‘Terminally Distressed’ and ‘Technically Insolvent’ and/or had closed shop for at least six months according the CBN. Subsequently, the operating licences of the 224 MFBs that were found to be ‘Terminally

Source: Business Day (link opens in a new window)

financial inclusion, microfinance