CEM REPORT, FINANCE | The introduction of microfinance banks into the Nigerian financial sector in 2005 was with a high expectation for the purpose of catering for the underserved public, which the commercial banks could no longer reach due to size of operations. The tiers of banks were specifically mandated to fund the lower level of the informal sector through financing of small businesses in the country. However, several market surveys conducted suggest that the performance of microfinance banks (Mfb) in Nigeria has not been impressive.
Considering the vital role they are meant to play in the development of the informal sector, their ineffective operation needs to be reversed. One of the cognizant ways is to critically look into the risk inherent in their operations and provide a guide.
The Association of Enterprise Risk Management Professionals have taken the initiative to convene a summit titled “MICROFINANCE RISK AND COMPLIANCE SUMMIT 2024”.  It is a pioneering event aimed at fostering a deeper understanding of risk management and compliance within the microfinance sector and FINTECH. The summit is designed to equip operators in the industry with essential knowledge and practical insights to navigate the dynamic landscape of microfinance and FINTECH.
Microfinance Banks and Risks
Risk, being a major factor in the successful operation of MFB, the primary objective of the MICROFINANCE Risk and Compliance Summit is to provide participants with a comprehensive understanding of risk management principles and practices tailored to the unique challenges and opportunities within the microfinance sector and FINTECH. Additionally, the summit aims to facilitate constructive dialogue and collaboration between industry operators and regulatory bodies to promote sustainability and responsible growth within the microfinance and FINTECH ecosystem.
The summit scheduled to on 2Oth April 2024 at the Bankers House, Chartered Institute of Bankers of Nigeria, CIBN, Adeola Hopewell, VI Lagos, is expected to have in attendance major stakeholders in the industries, these include MFB board members, executives and senior management professionals, risk managers, compliance officers, and internal auditors. Credit officers, Operation officers, relationship managers, Loan Recovery officers in MFBs, MFIs, FINTECH and related sectors.
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Director General of AERMP, Yinka Odutola expressed delight over the initiative of the institute to convene the summit. He highlighted the imperativeness of the summit considering the important role in our economy and also the peculiar risk the microfinance banks face.
“We all know the impact microfinance banks are making and can make in the economy of Nigeria. We also know that there are risks in the sector which has led to the collapse of many. The Institute thought of these and decided to convene the summit so we can discuss and provide risk guide for their smooth operation.
“I am optimistic that at the end of the summit, there will be significant improvement in the operation of the microfinance banks in Nigeria”; Odutola said
Intending participants are invited to register hereÂ
