Mr Samuel Durojaiye, former President of the Finance Houses Association of Nigeria (FHAN), on Wednesday lauded the N100 million recapitalisation base by Central Bank of Nigeria (CBN) for finance houses.
Thank you for reading this post, don't forget to subscribe!Durojaiye told the News Agency of Nigeria (NAN) in Lagos that the new capital base was ideal to check insolvency in the sector.
According to him, it will also assist in leveraging further financial intermediation.
NAN reports that finance houses, which before now, operated on N20 million capital base have been given till Aug. 31 to recapitalise to N100 million.
The new capital base is to create room for merger as some finance houses currently face challenges due to shortage of funds which have threatened their operations.
Durojaiye said that the aim of CBN and the Securities and Exchange Commission (SEC), as regulating agencies, was to ensure the public were not victims of illegal outfits operating as finance houses.
He added that the association had 40 of its members registered with the regulators as finance houses.