Finance experts push CBN to force fintechs, MFBs to publish annual reports
By Aboki Forex —
Finance experts have called on the Central Bank of Nigeria to compel all deposit-taking fintechs and microfinance banks to publish their annual financial reports. They argue that institutions holding public funds must face greater transparency.
The recommendation came during the latest edition of the Drinks and Mics Podcast hosted by Ugo Obi-Chukwu. Panellists said the current regulatory framework creates an uneven playing field. Commercial banks face stricter disclosure requirements than many fintech operators.
Ugo Obi-Chukwu said any institution holding customer deposits should be obligated to make its financial performance publicly available. “My only sticking point for fintechs is that I can’t wait for when the CBN will compel fintechs to publish their annual reports. I don’t know why they wouldn’t do that. Actually, if they’re holding deposits, they should. In fact, all microfinance banks should,” he said.
Finance expert Dele Akintola supported the position. He noted that public financial disclosure is standard practice for financial service providers in several markets. “All financial services should report by default. It happens in Kenya. All brokers,” he said.
Arnold Dublin-Green, Managing Director and Chief Executive Officer, Asset Management at Renaissance Capital Africa, also weighed in. He argued that traditional banks operate under heavier regulatory requirements than fintechs. Banks face stricter rules on capital adequacy and non-performing loan ratios. He described this as a regulatory imbalance.
The debate comes against the backdrop of existing CBN regulations governing microfinance banks. A March 2020 CBN circular requires all MFBs to submit audited financial statements and abridged accounts to the Director of the Other Financial Institutions Supervision Department for approval within four months after the end of their financial year. The circular further mandates MFBs to display abridged audited accounts at their head offices and branches. National MFBs are required to publish their annual accounts in national newspapers. External auditors are also expected to submit domestic reports on the accounts.