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Many depositors
yesterday thronged branches of some microfinance banks (MFBs) in Abuja
in the wake of last weekend’s decision of the Central Bank of Nigeria
(CBN) to wield the big stick against erring operators.

The Central Bank,
through its deputy governor, Financial Systems Stability (FSS),
Kingsley Moghalu, had announced the immediate revocation of the
operational licences and closure of 224 banks declared either
“terminally distressed” or “technically insolvent.”

Mr. Moghalu, who
said the affected banks failed a recent target examination administered
in conjunction with the Nigeria Deposit Insurance Corporation (NDIC)
for the 820 registered MFBs in the country, to determine their ability
to meet matured obligations to depositors, did not, however, name the
other 596 that were adjudged successful.

About 62 of the
sanctioned MFBs are in Lagos; 17 in Anambra; 15 in Rivers; 13 each in
Delta and Imo; 12 in Ogun; 10 in both Abia and Edo; 5 in Enugu; 7 each
in FCT and Osun; 8 each in Oyo, Kaduna, and Kogi; 4 in Ondo; 3 in Akwa
Ibom and Ekiti; 2 each in Cross River, Benue, Niger, Kebbi, Plateau,
and Bayelsa; one each in Adamawa, Bauchi, Sokoto, Jigawa, Taraba, and
Kwara.

The Central Bank’s
decision not to disclose the MFBs in good standing across the country,
ostensibly created panic among the people, who were anxious to know the
true standing of their various bankers.

‘Don’t want to take chances’

During a visit to
one of the MFBs located in the Garki area of Abuja, some of the
depositors interviewed said they would not want to take chances with
their funds.

It was gathered
that the bulk of those who thronged their various banks were more
anxious to get as much as they could from their accounts to forestall a
repeat of the experience with the distressed commercial banks two years
ago.

“As early as 8 a.m.
today (Monday), we have been inundated with several of our customers
who turned up to demand withdrawals from their accounts, apparently in
panic response to the decision of the CBN to announce the closure of
some of the microfinance banks”, one of the clerks said.

“We have not been
able to do anything else than attend to customers who have come to
withdraw money, despite notices that we are not affected,” she added.

Head,
communications, of the CBN, Mohammed Abdullahi, in a text message
response said yesterday that the bank was not considering the
publication of the names of the successful MFBs, to reassure depositors.

“Any depositor who
has any doubt whether his or her bank is affected should go to where he
or she has the account to confirm. If the names of the banks that have
been sanctioned have been published and people claim they do not see,
what is the guarantee that they would see if the list of the successful
ones are published,” Mr Abdullahi asked.

Meanwhile, the CBN
has indicated that it is not considering outsourcing the regulation of
the microfinance banks, pointing out that though the challenge of
monitoring the operations of almost 900 MFBs in the country may appear
almost beyond its capacity, the function would remain within its
internal structure.