CBN directs banks to end rendition on Microcredit Fund

CBN BUILDING

Five years after the operation of the Central Bank of Nigeria’s Micro credit Fund MCF was discontinued, the apex bank says some banks are still making rendition of their returns on the scheme to the CBN.

In a letter addressed to all the nation’s money deposit banks, signed by the Director of Banking Supervision, Tokunbo Martins, stated that the CBN observed that some banks still render returns on MCF to the Central Bank of Nigeria more than five years after the discontinuation of the scheme.

The letter which titled Cessation of Rendition of Returns on Micro Credit Fund, Martins adds that that the Micro Credit Fund (MCF) which had been in operation since February 8, 2008 was discontinued through the decision reached at the 298th Bankers’ Committee Meeting of March 15, 2010.

She explained that the decision to stop the implementation of the scheme was borne out of the fact that after two years of its existence, deposit money banks were not forthcoming in their contributions to the fund and in the same vein, only few states responded to the programme, consequently, the Bankers’ Committee decided to discontinue its operations.

The apex bank explained that the micro credit scheme was initially put in place to ensure a wider and equitable distribution of credit around the country to deserving entrepreneurs by allowing
Consequently, the apex bank last week directed the affected banks to stop the process forthwith.