Business

MFBs have given N483bn loans to small businesses by 2018- Emefiele

Banks’ assets, liabilities now N40.87trn- CBN Report

The Central Bank of Nigeria (CBN) governor, Mr. Godwin Emefiele has revealed that Micro Finance Banks in the country have given out loans to the tune of N482.896 billion to small business owners as at December 2019.

Emefiele made this known, weekend, during his keynote address at the 27th Seminar for Finance Correspondents and Business Editors, in Gombe, where he said, of this amount, loan sizes below N 1.4 million accounted for 72%.

The governor who lauded the CBN corporate Communications department for the seminar, said the FICAN Seminar has continued to deepen the knowledge and understanding of CBN’s policies and initiatives among Business Editors and Financial Correspondents and availed the bank an opportunity to receive periodic feedback from the media.

He averred that the theme of the seminar: “Repositioning Microfinance Banks for Real Sector Growth” was apt considering the bank’s recent efforts to prime the MFBs as catalysts for financial inclusion and poverty reduction.

“This gathering, like previous ones, aims to deepen the interactions between the CBN and the media for the benefit of the society which both institutions serve,” he said.

Mr. Emefiele shed light on some of the activities of the CBN in repositioning the MFB to serve Nigerians better and grow the economy.

“As you may be aware, microfinance is about providing financial services to the economically active Operators of the base of the income pyramid who are either undeserved or not served at all by conventional financial institutions. Consistent with its developmental role, the CBN in 2005 formulated the Microfinance Policy Regulatory and Supervisory Framework.

“The policy was aimed among other at bringing microfinance institutions and activities into greater focus in order to deepen financial inclusion and alleviate the financing needs of micro, small and medium enterprises (MSMES).

“The Bank has since then worked towards increasing access to financial services for the economically active poor in order to enhance job creation and poverty reduction. The target is to increase the share of micro credit as percentage of total credit to at least 20 percent by 2020.

“The Bank remains committed to the economic empowerment of disadvantaged groups including women and actively seeks to achieve this through the instrumentality of microfinance amongst other initiatives.

“Only recently, the Bank took some actions including a thorough review of the subsector, increased surveillance and revocation: where necessary. These measures were intended to revitalise the sector, ensure the institutions remain mission-focused and to grow public confidence in sub-sector.

“Data from the licensed credit bureaus indicate that the operations of micro finance banks have helped to improve financial inclusion amongst smallholder peasant farmers, artisans and other small business operators.

“As at December 2018, aggregate loans granted by MFBs was N482.896 billion. Of this amount, loan sizes below N 1.4 million accounted for 72%. We equally observed that small businesses have been more successful in securing credit from the microfinance institutions rather than from the conventional deposit money banks (DMBs),” Emefiele said.

The governor listed some of the challenges of the MFBs operation in Nigeria to include; inadequate spread in the location of the MFBs in relation to their target beneficiaries, demand for immoveable collaterals for loans, high interest rate, and absence of a credit reporting system.

Comment With Facebook

Comments (28)

  1. I simply want to mention I am beginner to weblog and actually enjoyed you’re web site. Probably I’m going to bookmark your website . You certainly have exceptional well written articles. Bless you for revealing your website page.

  2. I really like your wp template, where did you download it from?

  3. Hello Internet web site owner. I seriously love this writing and also your webpage all in all! That write-up is very clearly written and also without difficulty understandable. Your WordPress design is wonderful as well! Would definitely be excellent to discover where I can get that. Be sure to hold up the excellent work. We all need much more this sort of internet owners such as you online and much less spammers. Exceptional mate!

  4. It is in reality a nice and useful piece of information. I’m happy that you simply shared this helpful info with us. Please keep us up to date like this. Thanks for sharing.

  5. There’s noticeably a bundle to find out about this. I assume you made certain good factors in options also.

  6. Hello, Neat post. There’s a problem along with your website in internet explorer, would test this… IE still is the marketplace leader and a big component of people will omit your wonderful writing due to this problem.

  7. Sapid Agency is a Search Engine Optimization company in New York City that provides SEO Services. Their proprietary SEO strategies help struggling websites and aspiring business owners to rank their websites higher in multiple search engines like Google , Yahoo and Bing. They provide local and gmb map ranking for businesses in NYC and many other local areas. Find more at https://www.sapidagency.com/

  8. Howdy! Someone in my Facebook group shared this site with us so I came to look it over. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Fantastic blog and amazing design and style.

  9. Hey here, just turned out to be aware about your blog site through Search engines like google, and discovered that it is very informational. I’ll be grateful if you decide to continue this post.

  10. I just want to inform you that I am new to putting up a blog and certainly loved your work. Most likely I am inclined to store your blog post . You literally have great article content. Admire it for expressing with us the best blog post

  11. I simply wish to inform you you that I am new to wordpress blogging and thoroughly admired your review. Likely I am likely to save your blog post . You seriously have amazing article materials. Delight In it for sharing with us your main site article

  12. Hello here, just became mindful of your weblog through Bing and yahoo, and found that it’s very informative. I will truly appreciate should you decide retain such.

  13. I just need to notify you that I am new to blogging and pretty much liked your webpage. More than likely I am probably to remember your blog post . You certainly have superb article content. Get Pleasure From it for share-out with us your own url webpage

  14. I have not checked in here for a while since I thought it was getting boring, but the last few posts are good quality so I guess I will add you back to my everyday bloglist. You deserve it my friend 🙂

  15. I truly enjoy looking at on this internet site, it holds great articles. “Don’t put too fine a point to your wit for fear it should get blunted.” by Miguel de Cervantes.

  16. Thank you, I’ve just been looking for info about this topic for a while and yours is the best I’ve discovered so far. However, what concerning the bottom line? Are you certain about the source?

  17. Just before entering into verifying a money back guarantee reputation, I am required to mention a couple reasons for levy refunds.

  18. It happens to be the right time to prepare some intentions for the near future. I have looked over this blog entry and if I can possibly, I wish to suggest to you you a few entertaining recommendation.

  19. Absolute interesting highlights you have mentioned, warm regards for writing.

  20. It certainly is nearly extremely difficult to come across well-updated individuals on this subject, fortunately you come across as like you be aware of whatever you’re preaching about! Thank You

  21. Thanks for the best blog.it was very useful for me.keep sharing such ideas in the future as well. address |

  22. Have you already setup a fan page on Facebook ?”`”.’

Comment here