The Nigerian government, meeting on Tuesday in the Council of Ministers chaired by the Head of State Mohamed Bazoum, adopted draft decrees establishing a public administrative establishment called the “Regulation Agency for the Microfinance Sector” (ARSM ), and the approval of the statutes of the ARSM.
The press release published at the end of the meeting underlines that the ARSM was created by decree n°2007-066/PRN/ME/F of March 21, 2007, with a view to strengthening the monitoring mechanism of the microfinance sector in Niger, in the form of a classic administrative public service.
However, continues the text, the microfinance sector has experienced several changes in recent years that call for an adaptation of the legal framework of the institutions implementing the regulations relating to the decentralized financial system.
The government informs that “the Basel Committee in Switzerland, revising the Principles for effective banking supervision in 2012, applicable to microfinance, recommends that each supervisory institution be provided with an appropriate legal framework giving it the power to approve financial institutions, to ensure their permanent control, to verify their compliance with the legislation and to take corrective measures in a timely manner to remedy security and soundness problems”.
In this context, the Council deemed it appropriate to adapt the legal framework of the Agency concerned. “The purpose of this draft decree is thus to establish the ARSM as a public establishment of an administrative nature, endowed with legal personality and financial autonomy. This will allow this entity to better fulfill its mission of regulation and supervision of the Decentralized Financial Systems sector, in accordance with regional and international standards,” the statement said.
In addition, the government, having adopted the statutes of the ARSM, has also set the terms of its operation.