Nigerian microfinance banks to get 200bn naira fund

Nov 05, 2010

Microfinance banks will soon have access to a long-term fund of approximately 200 billion Nigerian naira (€928.9 million), the country's central bank Governor has stated.

Sanusi Lamido Sanusi, who was represented by Deputy Governor of Financial System Stability Dr Kingsley Moghalu at the Enhancing Financing Innovation and Access forum in Lagos, said the Central Bank of Nigeria is currently finalising the structure of the initiative, the Daily Trust reports. He noted it is necessary to strengthen the microfinance sector as the country works to achieve financial inclusiveness, with Dr Moghalu, speaking on Mr Sanusi's behalf, commenting the scheme will be ready "in a few months' time".

"We are trying to provide the microfinance banks [with] some sort of systemic support," Dr Moghalu told attendees at the conference, explaining companies in the sector are receiving training so that they "understand the concept of microfinance banking". Speaking to Bloomberg in September, Mr Sanusi warned businesses in the country are unlikely to see an improvement in access to finance before the start of next year.