The Centre for Social Justice(CSJ) has urged the Central Bank of Nigeria, and the Bankers Committee to raise the capital base of NIRSAL Microfinance Bank(NMFB) from N5bn to N100bn.
The NMFB is a brainchild of the Bankers’ Committee, the Nigeria Incentive-Based Risk Sharing System and the Nigerian Postal Service.
The Bankers Committee provided the set-up equity capital and owns 50% of the bank, while The Nigeria Incentive-Based Risk Sharing system for Agricultural Lending (NIRSAL) and NIPOST own 40 per cent and ten per cent respectively.
The CBN Governor, Mr Godwin Emefiele, had last week during a facility tour of the MFB said loans would be given at five per cent with a seven-year repayment period.
Speaking on the development, the Lead Director, CSJ, Eze Onyekpere, said yesterday that while the initiative was vital in view of its potential to provide liquidity to small businesses, the N5bn capital base of the MFB might be inadequate to bridge the funding gap.