CBN’s improved capacity building makes Microfinace Banks better managers – Operators

Microfinance Bank Operators have identified various capacity building trainings organized by the Central Bank of Nigeria (CBN) as a of the major source of the improved state of the Microfinance Bank industry in the country, which they said has made operators a better managers.

They said that this has also helped in driving the industry and articulate the function of Micro-finance Bank operation in Nigeria.

The Managing Director, Glory Microfinance Bank, Mr. Ajao Moses, said the capacity of the industry has been strengthened through lessons learnt by managers of Microfinance Banks MfBs, in the dictates of their duties, as operators now understood what it entails to manage a microfinance banks.

He stressed that the active poor are reached to the point of sustaining their financial and social needs, adding that the action of the regulatory body will also reposition the industry for a brighter future.

Moses pointed that banks are now managing these institutions as they ought to be, a development that will elevate Nigerian microfinance industry among the top markets in the world.

According to him, “As a MfB, we have professionals that handle the business, unlike before, where people with low educational status, were the one manning those institutions, especially, under community banking era. Now, there are standards and qualification you need, to become a management staff of a MfB.”

Managing Director, FinaTrust Microfinance Bank, Mr. Deji Popoola, stated that the CBN should be able to manage information better, whenever an issue like revocation occurs.

He said: “There are various ways to give directive and regulate and still ensure things are done better. There is no need to create unnecessary panic in the system, if you have effective regulatory tools.”

On the part of operators, he challenged them to build confidence, by ensuring strict adherence to regulation and good service delivery, which are very key.

Contrary to the belief in some quotas that MfIs have performed below expectation, he pointed out that they were able to meet their mandate.

“The model changed midway, many things have changed, the impacts have improved and businesses are now expanding, thanks to MfBs. So, there has been a lot of improvement, but there are still rooms for more,” he noted.