THE recent revocation of the licences of some of the micro finance institutions in the country is already having a toll on the sector as customers of these institutions across the country are besieging their respective banks to claim their deposits. This development is apparent across most of the micro finance banks in the country despite the Central Bank of Nigeria (CBN)’s appeal to Nigerians to remain calm in the event of the recent exercise. BusinessWorld Intelligence shows that the strong and healthy micro finance institutions are now the worst hit by the new development as their customers keep withdrawing their savings claiming lack of trust in the ability of their bankers to pay them as at when their deposits are needed.
Most microfinance bank officials last week complained of upsurge in the level of withdrawals which they blame on the revocation exercise. Some of the heavily affected banks are those in Abuja, Lagos, Oyo, Port Harcourt and Ogun states where the microfinance banking scheme has gained acceptance.
Some operators said the inability of the publics to distinguish between the affected ones and the healthy MFBs triggered the panic withdrawal.
One of the banks that witnessed panic withdrawal said though the list of the revoked institutions has been published; some Nigerians have yet to be convinced that more of the banks would not be affected in the nearest future.
Operators said this might lead to liquidity crisis in the sector and could consequently lead to more closures, and hence defeat the aim which the revocation was intended to achieve.
When BusinessWorld revisited some of the affected banks over the weekend, the panic withdrawal was still prevalent, although few of the customers came back to save part of their withdrawals. Mr. Lanre Abiola, managing director, Gold MFB said some of the customers who had earlier withdrawn their savings are now coming back to safe their money.