Central Bank of Nigeria gives room for microfinance bank mergers and acquisitions
Wednesday, March 26, 2014
There is an expectation of stronger microfinance banks (MFBs) in the country if the micro institutions that could not meet with their recapitalisation requirements, successfully engage and conclude with mergers and acquisition as they are directed by the Central Bank of Nigeria (CBN).
The CBN at the Bankers’ Committee meeting held recently in Lagos stated clearly that the deadline for MFBs recapitalisation expired December 31, 2013, and that it had directed those that did not meet up with the requirement of the exercise to merge.
“Microfinance banks that failed to meet up with the recapitalisation deadline have been advised to merge. The recapitalisation deadline has expired. So, they have been asked to merge. Microfinance banks that fail to merge will be liquidated and depositors fund will be paid through the Nigerian Deposit Insurance Corporation. The management of the CBN will come up with a deadline for the merger soon,” Tokunbo Martins, director, banking supervision, CBN, said while briefing journalists after the meeting.