CBN naira redesign caused microfinance banks, customers hardships - NAMB

The National Association of Microfinance Banks (NAMB) has renewed its call on the Central Bank of Nigeria (CBN) to always involve MfBs in formulating and implementing key policies.

“CBN’s naira redesign policy was desirable for the country, but non-integration of the MfBs in the policy formulation and implementation caused serious hardships for the banks and their customers,” the financial association stated.

The association also urged the apex bank to involve microfinance banks in other measures to enhance the nation’s financial system stability and sustainable growth.

It made the call in the communiqué issued at the end of its emergency board of trustees meeting recently in Abuja, signed by the chairman, Ibrahim Bamalli, and secretary, Dan Ogun.

The NAMB BOT called on the CBN to help improve public confidence in the microfinance banking subsector and position the MfBs for improved contributions to the nation’s gross domestic product (GDP).

“We recall that the implementation of the cashless and naira redesign policies created some challenges for MfBs that seriously threatened many member banks, with attendant negative implications,” added the association.

It also tasked MfBs and other relevant stakeholders to be involved in implementing policies of urgent importance to forestall the crisis that recently characterised the implementation of the naira redesign policy.

It also tasked its member banks on internal cleansing and self-regulation required to position them better to impact the economy. It urged MfBs to embrace digitalisation by committing adequate investments to critical e-channel infrastructure for enhanced operations.



FI