The Central Bank of Nigeria (CBN) has refuted a newspaper story claiming that 600 microfinance banks (MFBs) in the country were facing imminent shutdown.

Reacting to the false report, CBN Director, Other Financial Institutions Supervision Department (OFISD), Mr. Olufemi Fabamwo, said that the bogus and spurious claims made in the story defied the usual professional ethics of factual and balanced reporting, which are the hallmark of finance and business journalism. He said it leaves much to be desired that the reporter never bothered to crosscheck with CBN Corporate Communications Department or any other relevant authority.

Dismissing the story as totally untrue and misleading, Fabamwo reaffirmed unequivocally that the CBN is generally satisfied with the state of the microfinance industry and the financial condition of the MFBs.

Mr. Fabamwo further stated that such a callous and rash misinterpretation of the policy direction in the microfinance sub-could obviously result in the de-marketing of microfinance banks, thus undermining public confidence which is capable of precipitating panic withdrawals by depositors and investors in the MFBs.

Mr. Fabamwo assured that the microfinance sub-sector has been effectively regulated by the CBN and jointly supervised by the CBN and the Nigeria Deposit Insurance Corporation (NDIC).

He added that all MFBs are examined at least once a year, while some are examined more than once, depending on the exigencies of the situation, with follow-up visits to ensure that examiners’ recommendations are implemented and corrective actions are taken by the operators of the MFBs in order to engender stability in the microfinance space.

He advised the investing public and depositors of microfinance banks to ignore the story as an attempt to subvert the development of the nascent microfinance industry in Nigeria and solicited for their unwavering support to the microfinance industry.

•Photo shows CBN Governor Sanusi.