Cbn urged to raise nirsal mfb capital to 100bn

It appears that you're referring to a news article or a proposal suggesting that the Central Bank of Nigeria (CBN) should increase the capital base of the National Inland Waterways Authority (NIWA) Microfinance Bank (MFB) to N100 billion.

Here's a breakdown of the issue:

• The National Inland Waterways Authority (NIWA) Microfinance Bank (MFB) is a financial institution established to provide financial services to individuals and small businesses in Nigeria.
• The CBN is the regulatory body responsible for the supervision and regulation of all banks in Nigeria, including the NIWA MFB.
• The proposal suggests that the CBN should increase the capital base of the NIWA MFB to N100 billion to enable the bank to expand its operations, increase its lending capacity, and improve its financial stability.

The benefits of increasing the capital base of the NIWA MFB to N100 billion include:

• Increased lending capacity: With a higher capital base, the bank will be able to lend more to individuals and small businesses, thereby stimulating economic growth and development.
• Improved financial stability: A higher capital base will enable the bank to withstand potential losses and maintain its financial stability, which is essential for maintaining public confidence in the bank.
• Increased competitiveness: With a higher capital base, the NIWA MFB will be able to compete more effectively with other banks in the Nigerian banking industry.

However, there may be some challenges associated with increasing the capital base of the NIWA MFB to N100 billion, including:

• Increased regulatory requirements: The CBN may impose additional regulatory requirements on the bank to ensure that it maintains its financial stability and meets the increased capital requirements.
• Increased costs: The bank may need to increase its costs to maintain its operations and meet the increased capital requirements, which could impact its profitability.
• Increased competition: With a higher capital base, the NIWA MFB may face increased competition from other banks in the Nigerian banking industry, which could impact its market share and profitability.

Overall, the proposal to increase the capital base of the NIWA MFB to N100 billion is aimed at improving the bank's financial stability, increasing its lending capacity, and promoting economic growth and development in Nigeria. However, it is essential to carefully consider the potential challenges and implications of such a move before implementing it.