Masari urges CBN to review guidelines on microfinance institutions

Gov. Aminu Masari of Katsina State, has called on the Central Bank of Nigeria (CBN) to see the the need to issue peculiar guidelines for the operation of microfinance institutions in the country.

Masari made the call during the inauguration of the permanent building of Gobarau Microfinance Bank, Katsina, on Thursday.

The governor said that microfinance banks in states like Katsina, Jigawa, Kebbi and Zamfara, should not be made to have the same share capital with those in Lagos, Kano and Rivers States.

He said; “such general guidelines could make some microfinance banks to go into extinction and this could in turn affect the growth of small scale enterprises in the country.”

Masari, however, assured the management of the microfinance bank that the state government would partner with it to empower more people in the state.

He also stressed the need for microfinance institutions to contribute towards the development of education in the country.

Chairman of the Board of Directors of the Bank, Alhaji Ibrahim Ali Bindawa, said it was a huge challenge to microfinance banks to meet CBN’s requirement of N200 million share capital by 2020.

Bindawa, however, gave the assurance that the bank would continue to partner with the Katsina government to enhance income generating activities in the state.