The National Association of Micro Finance Banks on Monday said nine out of the 34 micro finance banks in Niger State have lost their operational banking licences.
Sado Daniel, the North Central Secretary of the association, said this in Bida while inaugurating a micro-finance bank established by the Federal Polytechnic, Bida.
Daniel said: “These micro-finance banks lost their licences because they fell short during the regulation exercise carried out by the Central Bank of Nigeria.”
He said non adherence to corporate governance contributed to the collapse of the banks, urging the management and staff members of the new bank to adhere strictly to the rules establishing it.
He said: “Banks do not die, people kill them; please do not kill the Federal Polytechnic Bida Micro-Finance Bank; ensure you adhere strictly to the rules of the game.”
Similarly, Hajia Hajara Mohammed, a representative of the CBN in Minna, said insider abuse was another huge factor that contributed to the failure of micro-finance banks across the country.
Mohammed urged business people to stop diverting loans collected from banks to other purposes such as marriage among other things different from what the loan was meant for.
She said: “Until we stop using business money and loans to get married and buy clothes, businesses in the country will not progress.”
She called on the people to work toward ensuring that all loans collected were paid back to enable them to benefit more.
Mohammed said: “If you don’t return your loans there is no way you will benefit from loans being made available by the Federal Government through the CBN.”
Earlier, Dr. Abubakar Dzukogi, the Rector of the polytechnic, said that the micro-finance bank was established with a capital base of N20 million adding that it would be increased to N50 million by the year 2019.
Dzukogi, who is also Chairman, Board of Directors of the micro-finance bank, said the bank would make banking easy for students and staff members of the polytechnic.
He also said the measure would ease the cashless policy being planned by the CBN.