The Chairman, National Association of Microfinance Banks, Lagos State Chapter, (NAMBLAG), Mr. Adenrele Oni, has stated that Micro Finance Banks in Nigeria disbursed N1.7 trillion in loans as at June 2022.
He said the deposit base in the sector toped N700 billion during the period describing the development as a significant milestone for MFBs.
Oni disclosed while speaking at the 11th Annual General Meeting, (AGM) and Inauguration of New Executive Management Committee of NAMBLAG in Lagos.
He said the Central Bank of Nigeria (CBN) has addressed the issue of MFBs recapitalization adding that the CBN has released a new capitalization requirement, which the MFBs are complying with.
“Our members are up and running in meeting with the capitalisation requirement. A number of our members have met and surpassed the capital requirements, which is a plus to the sector, ”he said.
Oni said there have been a number of developments in the sector adding that in the last few years, the sector witnessed the emergence of a number of digital banks who have invested in the microfinance space.
This, he stated, has brought a lot of competition, flexibility and a variety of products to the market.
Oni revealed that due to recapitalization, some players in the sector have not been able to invest heavily IT infrastructure revealing that MFBs are working with a number of Fintechs to come up with affordable apps.
Earlier in his remarks, the outgoing chairman, Mr. Taiwo Joda said NAMBLAG members have done very well in the area of digitalisation, especially those in Lagos who have digitalised their banking processes.
He harped on the need for increased collaboration among members urging them to work with fintechs and digital technology providers to provide better service for their customers.
According to him, “Technology is not cheap that maybe is one of the reasons why we have not seen a significant number of Microfinance Banks having their banking processes fully digitalised.
“You can collaborate with the fintechs, and technology providers. You can also collaborate with different digital platforms, especially payment platforms, and that helps you because you don’t need to invest any significant amount on IT infrastructure.”
