Microfinance bank operators have expressed mixed reactions over the decision of the Central Bank of Nigeria (CBN) to have consultants for the examination of the banks.

CBN Governor Mr Sanusi Lamido Sanusi, has said following the upsurge in the number of microfinance banks, the apex bank will outsource their examination.

There are about 905 microfinance banks nationwide, hence the apex bank has to seek new ways to tackle the challenge of monitoring their activities.

Mr Akin Obasa, Managing Director, MCB Microfinance Bank in Lagos, said that there was nothing wrong in the apex bank’s decision if the CBN would bear the cost of the exercise.

"Most stakeholders of the microfinance banks are either individuals or entrepreneurs, as only about 30 per cent of them are institutionally or jointly-owned.

"Many of the proprietors have sunk all their savings into the business, It will, therefore, be an added burden to again levy or surcharge such operators for the CBN examination,’’ he said.

Obasa added that microfinance bank owners do not have any window to access funds for their clients

He said the upsurge in the number MFBs poses a challenge to the CBN and the Nigerian Deposit Insurance Corporation (NDIC) on how to effectively monitor their activities.

Mr Tayo Adenekan, President, National Association of Microfinance Banks in Nigeria (NAMFBIN), supported outsourcing of the examination of the banks.

He described it as was long overdue because of the banks’ number and territorial spread, stressing that there was no way the CBN and the NDIC could cope with the challenge.

Adenekan, however, urged that the examination should be delegated to competent individuals and organizations.

He said outsourcing would help to expose what the banks were not doing well and assist in preventing an extension of the banking crisis to the sub-sector.

But Mr Gideon Omoyibo, President, Young Entrepreneurs of Nigeria (YEN), is strongly opposed to outsourcing.

He is apprehensive that the initiative could be another means of creating jobs for some foreigners. This, he said, has been the case in some countries.

Omoyibo said the CBN should fund the exercise to free the MFBs to advance loans to small-scale business promoters.