Insolvency among microfinance banks could hamper Nigeria’s financial inclusion strategy
Wednesday, February 5, 2014
The Central Bank of Nigeria’s (CBN) financial inclusion strategy targets a reduction of adult population financially excluded from 46 percent to 20 percent by the year 2020.
This objective cannot be achieved completely without active involvement of microfinance banks (MFBs) operating in the country.
If over 630 MFBs out of about 900 are insolvent, according to BusinessDay’s investigation, then the financial inclusion initiative of the regulator is at risk, analysts have said.
There are strong indications that about 70 percent out of the 900 MFBs may not have met the recapitalisation requirements of the CBN, which is likely going to lead to another crisis in the sub-sector, BusinessDay gathers.