By Providence Emmanuel
Microfinance banks operators have called for less stringent regulation of the subsector, stressing their operation is presently over regulated.
Speaking to Vanguard, Managing Director/Chief Executive of Mainstreet Microfinance Bank Limited said that though the stringent regulation imposed by the Central Bank of Nigeria (CBN) is informed by the poor credit culture in the country, the regulation is however too stringent when compared to what obtains in some jurisdictions.
He stated: “I also think that Microfinance in Nigeria is currently being strictly regulated compared with what obtains in many East and South African and Asian countries.
“We know that the regulators objective is in response to the nature of our own society. But we should get to a point were some small scale microfinance can operate just like the modern forms of our typical Alajo or Esusu system.
“Those people will not need N20 million to start their businesses, particularly in our remote villages. Their activities would be guided by other business related parts of our laws, pending when they will grow to the level of strict regulation.