By AMAKA ABAYOMI

The Central Bank of Nigeria, CBN, has listed a number of measures it has adopted to checkmate the activities of microfinance banks (MFBs) in the country.

According to the CBN, it adopted these measures in the revised the policy framework to ensure that MFBs provide diversified, affordable and dependable financial services to the economically active poor.

Recognizing the challenges posed by lack of funding, the Federal, State and Local Governments will be persuaded to participate by devoting, at least, one per cent of their annual budgets to microcredit initiatives that will be administered largely through MFBs.

To ensure that all such licensed MFBs are adequately capitalised and operate in a safe and sound manner, the licensing and supervision of MFBs will be done solely by the CBN.

Efforts will also be made to strengthen the skills of regulators, operators and directors of MFBs through the continuous professional development that will instill professionalism, transparency and good governance as the bedrock of the sub-sector.

In its effort to increase financial inclusion, the CBN shall set up financial literacy and consumer protection programmes that will promote savings and banking culture among low-income groups.

The CBN also noted that MFBs will be required to include in their periodic returns disaggregated data on the uptake of their products and services as may be required, while linkages between deposit money banks, NGO-MFIs, other micro-enterprise finance institutions as well as MFBs would be strengthened and institutionalized to increase the flow of funds to clients.