Nigeria to Establish National Micro-Finance Bank

Jan 18, 2019 | Premium Times; All Africa

A national micro-finance bank is to be established to promote access to credit finance for small, medium enterprises (SMEs) and other unbanked groups in the country, the Central Bank of Nigeria (CBN) said on Thursday.

The CBN governor, Godwin Emefiele, who announced this in Abuja, Nigeria, said the bank will be established in collaboration with the Bankers Committee, the Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) and the Nigerian Postal Service (NIPOST).

Mr Emefiele was represented by the deputy governor, Financial Systems Stability of the CBN, Aishah Ahmad, at the maiden two-day National Financial Literacy Stakeholders' conference organised by the bank in Abuja. The CBN governor said the new national MFB which shall be technology driven will leverage on the NIPOST's presence in 774 local government areas of the country to reach its target beneficiaries.

"The bank will serve as an efficient channel for the disbursement and monitoring of key intervention funds by the CBN, such as the Anchor Borrowers fund, SME fund, etc, to farmers and SMEs at the grassroots level," Mr Emefiele said. He said the conference will provide the platform for participants to deliberate on key imperatives for achieving the country's financial inclusion targets, promoting financial stability and entrenching sustainable and inclusive economic growth.

The theme of the conference, "Implementing Financial Literacy and Consumer Protection to advance Financial Inclusion in Nigeria", the CBN governor noted, was selected to help focus on the need to redress the challenges limiting financial inclusion in the country. Building an inclusive financial system, he said, has positively impacted efforts towards poverty reduction and enhancement of economic prosperity.

Following the launch of a National Financial Inclusion Strategy in 2012, Mr Emefiele said the federal government set a target to achieve 20 per cent financial exclusion rate in the country by 2020. He said the latest access to financial services survey showed about 36.8 per cent of eligible Nigerian adults do not have access to financial services, down from 41.6 per cent in 2016.

Despite the improvement, the CBN governor said more effort was necessary to achieve the overall 20 per cent target exclusion rate by 2020.The revised National Financial Inclusion Strategy, which was launched at the opening session of the conference, he said, identified consumer protection and consumer education as critical to the attainment of financial inclusion. Read more from All Africa.

 

Source: All Africa