The National Association of Microfinance Banks (NAMB) says that the proposed Microfinance Money Market Operation (MMMO) will become operational by the first quarter of 2013.
Valentine Whensu, the president of the Lagos State chapter of NAMB, made this known in an interview with the News Agency of Nigeria (NAN) in Lagos on Sunday.
He said that the modalities for the operation of the MMMO were being finalised, adding that the association was working with Kakawa Discount House to ensure its smooth implementation.
Whensu said that the MMMO was an initiative of the Lagos State chapter of NAMB that was aimed at improving the liquidity of the microfinance sub-sector.
“We believe that instead of trading one on one, we should trade on a collective basis to ensure increased liquidity in the system.
“We have operators who have surplus funds in the sector and we have those who are deficient in funds for business transactions.
“They have their treasury bills and collaterals that they are not using; so, we decided to register ourselves and follow the conventional money market system.
“The MMMO will galvanise business activities because the deficient operators can now access funds at good rates. In addition, it will also engender confidence in the sub-sector”, he said.
Whensu said that the association was currently working on how to ensure the sustenance of the initiative.