Banking
Abolo to CBN: Focus More on Corporate Governance, Not Recapitalisation
**Says Standard of Corporate Governance in MfBanks Poor
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has been advised to consider paying more attention to standard of corporate governance at microfinance banks in the country than recapitalisation of the sector.
An expert in the banking industry, Dr Emmanuel Moore Abolo of the Risk Management Academy Limited, who gave this suggestion, said operating sound corporate governance for the banks and enforcing stringent compliance regime will go a long way in ensuring a standard environment for operation by microfinance banks in Nigeria.
Speaking at a seminar in Lagos on Thursday, Dr Abolo emphasised that the present standard of corporate governance in microfinance banks in Nigeria was poor.
“The standard of corporate governance in many microfinance banks in Nigeria is poor. Board members are known to misuse their positions to obtain facilities way above the regulatory limit for insider related loans and worse still with no intentions of repaying such facilities,” he noted.
Dr Abolo was a guest speaker at the forum organised by a top international investment banking firm, GTI Capital Limited, in conjunction with one of Nigeria’s business-oriented media platform, Business A.M. The joint finance and investment dialogue was on the recapitalization of microfinance banks in Nigeria.
Apart from Dr Abolo, others at the seminar were the Group Managing Director of GTI Capital Limited, Mr Abubakar Lawal; Chief Economist & Head, Corporate Transformation of GTI Capital Limited, Professor Martin Ike-Muonso amongst others.
During the lecture tagged: “Recapitalisation of Microfinance Banks: The Risks, The Opportunities”, Dr Abolo presented the pros and cons associated with the CBN’s recapitalisation scheme for all microfinance banks at unit, state, and national levels.
He said while recapitalisation might not be the effective answer to the multitude of problems encountered by microfinance banks, operating sound corporate governance for the banks and enforcing stringent compliance regime would go a long way in ensuring a standard environment for operation by microfinance banks in Nigeria.
He stressed that recapitalisation presents a lot of benefits and might prove crucial to the survival of some microfinance banks in the country., saying, “The emergence and prevalence of miracle or magic banks from time to time has done a lot of disservice to the image of microfinance banks.”
According to the chief speaker, microfinance institutions are plagued with copying, competing, and mimicking the practices of commercial banks while they are restricted by weak regulatory support and outdated technological support.
He identified that inadequate capital, poor service delivery, unfavourable and frequent changes in government policies associated with high risks and corruption prevent microfinance banks from performing at optimal level.
Dr. Abolo, from his wealth of experience in the finance world, suggested that there might be need for transformation of microfinance institutions into deposit-taking financial institutions.
“Transform microfinance providers into fully regulated deposit-taking financial institutions. These transformations have successfully taken place in Bolivia, Kenya, Uganda, Mongolia, Peru, and several other countries,” he said.
Dr. Abolo also called for the structuring of robust risk management architecture which will help cushion many microfinance banks against unexpected losses and systemic risks.
By Aduragbemi Omiyale
A collaboration to enable fast money transfers into Nigeria has been entered into between Flutterwave and Xoom, PayPal’s international digital money transfer service.
The partnership allows Xoom transfers to be converted by Flutterwave and settled locally in Naira, enabling quick transfers directly into recipients’ bank accounts at Access Bank, UBA, Zenith Bank, First Bank, GTBank, and additional participating banks across Nigeria.
The deal also enables Xoom’s global network with Flutterwave’s local payout infrastructure, allowing users globally to send funds directly into Nigerian bank accounts with improved speed and efficiency.
Nigeria is the leading remittance recipient in Sub-Saharan Africa, receiving over $20 billion in personal remittances in 2024. Despite this volume, receiving international payments has historically remained complex due to FX constraints and settlement delays. This collaboration helps address those challenges in a market of more than 232 million people, where the ICT sector is projected to contribute 21 per cent of GDP by 2027.
By combining Xoom’s expansive reach with Flutterwave’s local compliance and banking partnerships, the two companies are providing a more accessible financial corridor for the continent.
Xoom, a PayPal service, is a fast and secure international digital money transfer service that enables consumers to send money, pay bills, and reload phones for friends and family in approximately 160 markets globally.
As part of PayPal’s global payments ecosystem, Xoom leverages advanced fraud protection, compliance capabilities, and a trusted global network to help millions of customers move money quickly and securely across borders.
“We’re excited to have been chosen by Xoom for their Nigeria expansion. Millions of Nigerians rely on money from abroad to support everyday needs, whether it’s families receiving help from loved ones, freelancers getting paid for their work, or individuals earning income from the global economy. This helps make it easy and more reliable for people in Nigeria to receive funds and stay connected to opportunities beyond borders,” the chief executive of Flutterwave, Mr Olugbenga GB Agboola, stated.
By Aduragbemi Omiyale
An initiative known as Nigeria Lightning Rounds, designed to expand funding opportunities for Nigerian startups and small businesses by connecting founders with local and international investors, has been launched by ProvidusUnity Bank, in partnership with US-based global venture firm and accelerator, gener8tor.
Scheduled to be held on July 15, 2026, Nigeria Lightning Rounds will feature carefully selected startups engaging with targeted investors who have expressed interest in supporting Nigerian innovation.
Participating founders will have the opportunity to pitch their businesses through focused 15-minute virtual sessions facilitated by gener8tor and ProvidusUnity Bank’s networks.
The program will focus on high-growth sectors including fintech, healthtech, manufacturing, sustainability, and AI, but welcomes SMEs from all industries, with intending participants urged to apply via https://www.gener8tor.com/lightning-rounds/nigeria.
“We recognise that access to capital remains one of the biggest challenges facing entrepreneurs in Nigeria. Through our partnership with gener8tor, we are creating a platform that connects promising Nigerian founders with investors who can provide the support required to scale their businesses,” the Head of Business Development at ProvidusUnity Bank, Mr Ernest Elue, stated.
“The partnership reinforces ProvidusUnity Bank’s commitment to strengthening Nigeria’s entrepreneurial ecosystem by supporting innovation, enabling access to opportunities, and creating pathways for businesses with high-growth potential,” he added.
Also commenting, the Director of Lightning Rounds at gener8tor, Ms Elizabeth Larios, said, “gener8tor is thrilled to partner with ProvidusUnity Bank to extend the Lightning Rounds model into Nigeria.
“This collaboration reflects our commitment to building equitable ecosystems and driving capital to the most promising and underrepresented entrepreneurs.”
Lightning Rounds are a signature initiative of gener8tor’s investment platform, which has facilitated thousands of investor-startup meetings globally. The format is optimised to eliminate friction, reduce bias in early-stage fundraising, and help founders secure capital from investors aligned with their mission and stage. gener8tor’s previous Lightning Rounds for Nigerian Founders in 2025 featured 18 participating Investors and led to 50 investment meetings facilitated.
By Modupe Gbadeyanka
The verification of the depositors of the 46 microfinance banks, whose operating licenses were revoked by the Central Bank of Nigeria (CBN) over a week ago, has commenced.
The exercise, aimed at refunding those whose funds were trapped in the small lenders, is being conducted by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement on Thursday, the agency said its staff members have been positioned at the offices of the affected banks across the country to attend to depositors.
It was disclosed that depositors of the defunct banks, who had their Bank Verification Numbers (BVNs) linked to their accounts in the failed banks, will be paid through their alternative accounts in existing banks.
However, depositors whose BVNs were not linked to their accounts in the failed banks have been encouraged to visit the affected banks’ offices with proof of account ownership, a passport photograph, verifiable means of identification (Driver’s Licence, Permanent Voter’s Card, International Passport or National ID Card) and BVN.
NDIC also stated that depositors can alternatively file their claims online through its website: www.ndic.gov.ng, to complete the Pre-Verification Claims Form by clicking on the Search Bar, and typing Pre-Verification Claims Form; opening the Form and filling in their details. They can also do so by clicking the link: https://ndic.gov.ng/ndic-pre-verification-claims-form/ or by visiting any of the NDIC offices closest to them to file their claims.
For further enquiries, the corporation can be reached on any of the following lines: 09037273810, 09038197064, 08104220807, 09064657140.
