The Nation June 10 2011

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Nigeria’s truly national newspaper

News Court remands 18 NURTW men over Ibadan killings P5 Sport Osaze won’t feature for Eagles now, says Siasia P24 Business Court grants ex-Afribank MD, others N425m bail P15 http://www.thenationonlineng.net

VOL. 6, NO. 1786 FRIDAY, JUNE 10, 2011

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HE Central Bank of Nigeria (CBN) is set to approve a new capital base for microfinance banks (MFBs). Under the new dispensation billed to be announced by the banking watchdog before the end of this month, microfinance banks that want to operate at the national level must be capitalised to the tune of N2billion. Now, none of the microfinance banks has a na-

TR UTH IN DEFENCE OF FREEDOM TRUTH

New capital base for microfinace banks By Akinola Ajibade, Senior Correspondent

tional spread. The capital of those operating at the regional level will be slashed from N1billion to N100million. Those seeking to operate at the rural level (one branch bank) will remain unchanged at N20million.

CBN spokesman Abdullahi Mohammed confirmed that the apex bank was planning to raise the capital base of MFBs operators. He said the apex bank was reviewing the activities of the operators, and would come up with its own position soon. A microfinance bank chief, who

pleaded not to be named, said CBN had at a recent meeting with MFBs operators decided to raise the capital base. He said the major concerns of the operators were how to recover their debts to meet up with the new capital regime. “Going by the feelers from the

N150.00 apex bank, I don’t think CBN would change its decision on the issue of increasing the capital base of MFB operators. Initially, CBN tried to increase the capital base to N50million, but realised that the money would not be enough in view of the crisis rocking the institutions. As operators, we are awaiting the review of the regulaContinued on page 2

Obama to Jonathan: give anti-graft battle priority Nigeria seeks US support From Vincent Ikuomola and Adeola Fayehun, New York

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NITED States President Barack Obama has told President Goodluck Jonathan to “make fighting corruption a national priority”. He also requested the Nigerian leader to create conditions for sustained growth and lasting prosperity. Obama spoke at the White House on Wednesday during a meeting with Jonathan. The President took time off his visit to the United Nations headquarters in New York where he attended the HIV/AIDS summit to travel to Washington for the meeting with the U.S. leader. According to a transcript of the meeting, both leaders reaffirmed the strong bilateral partnership between the two countries. Obama congratulated Jonathan on the success of Nigeria’s April elections, which he said “deepened the foundation for future democratic contests”. The leaders also discussed how the Jonathan administration could build on the momentum of the elections “by investing in Nigeria’s energy supply, agricultural productivity, democratic institutions and security sector.” •President Jonathan speaking in New York ... yesterday. With him are UN Secretary General, Ban Ki-Moon (right) and former US President Bill Continued on page 2

Clinton (second from right).

PHOTO: STATE HOUSE

MTN disowns call logs in petition against Salami

•SEE PAGE 2

•Justice Salami

Expert witness found to be bureau de change boss

•POLITICS P12 •AGRIC P17 •SOCIETY P29 •BRANDS P47 •MONEYLINK P56


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The Nation June 10 2011 by The Nation - Issuu