CBN's new target for Microfinance Banks

The Central Bank of Nigeria (CBN) has set new targets for Nigeria's Microfinance banks in its revised National Financial Inclusion Strategy. With a target of 774 new bank accounts per year in view, the CBN wants each branch of every Microfinance bank to acquire 64 new customers per month. Rogers Nwoke, President of the National Association of Microfinance Banks, joined CNBC Africa to discuss how these targets are being received by the microfinance banks in the country. Nwoke expressed that the targets were not surprising, as the association was involved in the process leading to their establishment. He acknowledged the ambition of the goals but emphasized the importance of striving for them to meet the overall financial inclusion objective set for 2020. In terms of the average number of customers acquired in a month by microfinance banks, Nwoke highlighted the differences based on the size and location of the banks. He noted that while the target of 64 branches per MFB may not be equally attainable for all, the larger banks could potentially offset any shortfalls from the smaller ones. Despite the challenges posed by this ambitious target, Nwoke expressed confidence in the collective effort of the microfinance banks to achieve the set goals and contribute significantly to the financial inclusion drive. Microfinance banks play a crucial role in expanding financial services to rural and underserved areas, where traditional banks may not reach. Nwoke emphasized that while progress has been made in increasing financial inclusion, there are still disparities across different regions. Areas with fewer microfinance banks tend to have higher levels of financial exclusion, highlighting the need for enhanced strategies to address these gaps. Nwoke stressed the importance of larger banks with operations across multiple geographies in driving financial inclusion in areas with the highest exclusion rates. Overall, the microfinance banks in Nigeria are poised to take on the challenge of meeting the CBN's ambitious targets to advance financial inclusion in the country. Despite the hurdles they may face, Nwoke and the National Association of Microfinance Banks are committed to leveraging their role in driving financial inclusion and reaching the set objectives.