CBN considers 3% Interest Rate for Microfinance Banks

    The Central Bank of Nigeria (CBN) will soon announce a uniform interest rate of three per cent to be charged by microfinance banks (MFBs).

   According to report,“What the central bank wants to do is that every MFB must not exceed three per cent interest rate monthly. This covers both reducing balance and flat interest rate. The three per cent would be inclusive of all charges such as insurance, administrative and other charges.

“To do that, the CBN is not considering how many people would be thrown into the labour market and a lot of people would be fired because the MFBs would have to struggle to manage their cost of operation,”