The Osun State Chapter of the National Association of Microfinance Banks (NAMB), in partnership with the Microfinance Learning and Development Centre, on Thursday held its quarterly training for directors of microfinance banks, with a strong emphasis on corporate governance enforcement as a pathway to sustainable growth in the subsector.
The training, held in Osogbo, brought together board members, managing directors and compliance officers from across its members to address long standing governance gaps that have contributed to distress in some microfinance institutions.
Speaking at the event, the State Chairman of NAMB, Charles Abiodun Adedayo, said the association organised the workshop to strengthen ethical management and prevent bank failures within the microfinance system. He noted that poor corporate governance remains one of the major triggers of distress in struggling MFBs.
According to him, the training was designed to remind directors of their crucial responsibilities and to fortify them with necessary skills to ensure adherence to governance principles.
“Over the years, some microfinance banks that became distressed suffered mainly because of poor corporate governance, where governance issues are not addressed or complied with, bank failure is inevitable. That is why we insist on continuous training for directors and board members so that they are equipped to enforce the Code of Corporate Governance. With our slogan in Osun State, “no bank must die” we must keep strengthening the system,” he said.
The General Secretary of the association and Chairman of the Training Committee, Yinusa Musiliu, explained that the objective of the programme was to help board members and management teams understand how governance enforcement directly influences institutional performance and sustainability.
Musiliu said the conversation around governance was necessary to prevent waste, block leakages, and promote consistent growth across microfinance institutions.
“This training helps our board members and managing directors understand the relevance of corporate governance and how enforcement will help the growth of our microfinance banks, if we fully understand what sound corporate governance entails, we will appreciate how impactful it will be on the sector and the state economy. Sustainable growth is not about performing well one year and failing the next, we want steady progress,” he noted.
The Managing Director/CEO of Microfinance Learning and Development Centre, Lagos, Adetunji Afolabi, described the initiative as forward thinking, noting that strengthening governance at the board level remains the most effective route to institutional resilience.
“This is a laudable initiative. Corporate governance is the panacea for sustainable growth in the sector, the board sits at the fulcrum of governance, and training like this empowers directors to entrench controls and ensure that institutions are run efficiently and sustainably,” Afolabi said.
Participants also expressed satisfaction with the quality of the training.
A director at Legend Microfinance Bank, Engr. Aderemi Bello, said he attended because of the responsibility that comes with managing depositors’ funds.
He noted that the first sessions of the training had already broadened his understanding of risk management, ethics, and the duties of directors.
Another participant, Adedunmomi Esan, described the training as timely and enlightening, especially in helping directors better understand their rights and obligations under regulatory frameworks.
The quarterly training has been a regular programme of Osun microfinance banks.
Advertisement
