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‘MFBs must cooperate with CBN’

PAST president of National Association of Microfinance Banks and chairman, Catland Microfinance Bank, Otunba Olatunde Olowu,  says microfinance banks affected by the recent revocation of licences by the Central Bank of Nigeria, CBN, should contact the apex bank to iron out any differences rather than head to court.

He said going to court would be diversionary, adding that it was the desire of CBN that microfinance banks grew and survived to help the economy in Nigeria.

Olowu, a chartered accountant, said any grievances towards the revocation should be directed to the CBN who are in a better position to advise and remedy any situations.

According to him, “I can say with no fear of contradiction that the Central Bank of Nigeria’s exercise was thorough because the guidelines relating to the operations of microfinance banks in Nigeria are well spelt out.

“Therefore going to court is not an option but will divert attention.”

Otunba Olowu said, “CBN has been very supportive and have in the past bent over backwards to ensure the survival of microfinance banks in the country”.

On the merger of microfinance associations, Olowu said it was the CBN that supervised the election that culminated in the merger, and had been supportive in the capacity building of the banks.

According to Olowu, “We have had occasions t6o plead with our members that they must regularly render returns to the CBN, ensure good corporate governance and attend to liquidity problems of their banks”, he said, adding, “Of course, we agree that the global economic situation has affected so many micro finance bank customers; as many have not been able to repay their debts. All the same, the CBN has a function and I believe, in all honesty, CBN has done well for us”.


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