Microfinance Banks (MfBs) have been urged to consider issuing bonds as an alternative source of raising capital needed to meet their customers’ credit needs.
The International Finance Corporation (IFC) Vice President and Treasurer, Jingdong Hua, said MfBs have capacity to issue bonds, raise fresh capital and deepen capital market liquidity.
He said Nigeria’s capital market has huge potentials and should be tapped into by all segments of the economy.
Speaking atthe weekend, during a seminar to mark 10th year anniversary of Accion Microfinance Bank, held in Lagos, he said MfBs have potentials that should be tapped to grow the economy.
In the policy framework for MfBs, the Central Bank of Nigeria (CBN) classified operators into three categories with correspondent capital requirement. They are unit MfB with N 20 million minimum capital base, State MfB with ₦100 million and National MfB with ₦2 billion capital requirements.
The Accion Microfinance Bankoperates with National Licence.
Accion Microfinance Bank has granted over ₦6 billion loans to customers in the last decade, its Chairman, Board of Directors, Patrick Akinwuntan disclosed at the event.
He said the bank has supported large number of entrepreneurs to grow their businesses.
He said Accion Microfinance Bank now operates in seven states with a total of 60 branches. “We want to empower micro-entrepreneurs with credit and financial services. We are focused primarily on making them happy and fulfilled. We are just starting at 10 and our focus is to deepen the financial system,” he said.
Akinwuntan emphasised that one of the benefits of financial inclusion is helping people start and grow their businesses.
Outgoing Managing Director/CEO of Accion Microfinance Bank, Bunmi Lawson, said the bank under her leadership has created an institution that has solid foundation. “We have built institution and staff that are committed to innovation”, she said.
The CBN Director, Development Finance, Mudashiru Olaitan, said financial inclusion can help people step out of poverty and address long term growth challenges.
The CBN has overtime, emphasised the need for Nigerians to embrace savings culture to bridge the huge gap between the banked and unbanked.