Deputy Governor , Financial Sector Surveillance of the CBN, Mr. Tunde Lemo, disclosed this in Abuja at a workshop with a theme “Access to finance survey” organised by Enhancing Financial Innovation and Access in Nigeria (EFInA).

According to him, “In order to address the skewed nature of institutions against Micro, Small and Medium Enterprises (MSMEs) and rural areas in terms of access to capital, the policy provides for an even spread in the licensing of the micro finance banks.

This means that the CBN will ensure that each part of the country is put into consideration in the granting of its licenses. We have noted that there has been concentration of the banks in some states of the country, while others have been observed to have few of the banks.

To this extent, henceforth the CBN will be issuing Microfinance Bank (MFB) licenses to only individuals, group or corporate organisations that are ready to operate in rural areas of the country”.

He said the decision by the apex bank is to check the skewed nature of institutions against micro, small and medium enterprises (MSMEs) and rural areas in terms of access to capital.

While reacting to the survey by EFInA that 75 per cent of Nigerians are unbanked , he stressed that the micro finance banks are not doing their job as they were supposed to do adding that the implementation of such new  policy would also ensure that each part of the country is put into consideration in the granting of licenses for microfinance banks.

Represented at the occasion by the Deputy Director, Development Finance of the CBN, Mr. Uji Amedu stated “The CBN as at the end of September 2008 had issued a total of 815 licenses for MFBs with six of them operating on state level and with a minimum capital requirement of N1billion while the remaining 809 unit banks require a minimum capital base of N20million".

According to him “ Government’s target under the microfinance policy regulatory and supervisory framework which was launched in December 2005 by the CBN covers majority of the poor  but economically active population by the year 2020, increase in the share of micro credit as a percentage of total credit to the economy from 0.9 percent

According to Lemo “ Development finance in the CBN, arrangements have been concluded by the apex bank to hold investor’s fora in states with few banks in order to encourage promoters to establish additional ones.

The CBN , he noted intends to give appropriate and accelerated consideration in license issuance to any such operators ready to operate in states with few banks.

Also , he disclosedn that the CBN intend to increase the N50 billion  Micro Credit Fund which was launched by President of the Federal Republic of Nigeria in February 2008 to N100 billion by the end of 2010.

According to him “ The Fund has commenced operations with the balance of SMEEIS funds which stood at aboutn N20 million as December 31, 2007. Subsequently, contributions of 5 per cent of profit after tax would be made by each bank to increase the fund up to N100 billion by end of 2010".

In her speech at the occasion, Managing Director of EFInA, Mrs.  Modupe Ladipo said “ In the survey it was discovered that the most likely to be banked are males and people leaving in urban areas. 85 per cent are currently unbanked while 86 per cent of rural dwellers are not banked”.

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