The National Association of Micro Finance Banks (NAMB) has said government’s stringent   regulations are limiting the operations and growth of micro finance banks in the country.

The Executive Secretary of the association, Mr Kabir Yar’Adua, told the News Agency of Nigeria (NAN) that the Central Bank of Nigeria was imposing too strict  guidelines on Micro Finance Banks (MFBs).
“MFBs are one of the most heavily regulated sub-sectors and I think there should be a limit to these regulations.

“If you look at what an individual promoter is supposed to do before establishing MFB, you will see the extent of the regulations.
“ For you to set up MFB, your Managing Director must be an ex-banker and you must have two other ex-bankers among the board members of the bank.

“ You need to employ an IT staff, an Internal Auditor for cheques and balances among other requirements”, he said.
Yar’Adua explained that MFBs are not allowed to take deposits from any tiers of government or engage in foreign exchange, yet they lend money to civil servants and the general public.