The National Association of Microfinance Banks has asked the Central Bank of Nigeria to provide a special N250bn intervention fund for Micro, Small and Medium Enterprises in the country to support ongoing economic recovery agenda of the government.
The outgoing President of NAMB, Rogers Nwoke, made the call during the association’s 10th Annual General Meeting held virtually in Abuja.
Nwoke, who commended the apex bank on its sundry measures to fast-track the nation’s economic recovery from the impact of the COVID-19 pandemic, pointed out that since the N50bn intervention fund now being disbursed by NIRSAL MFB could not adequately meet the needs of MSMEs nationwide, the need for additional funding for the enterprises became imperative.
He said, “The role of The government in microfinance is to provide an enabling environment for private capital to thrive, and where the government chooses to intervene in funding, such intervention should be appropriately distributed to critical stakeholders.”
He added, “Let me use this opportunity to renew our request for a N250bn to MSMEs to be disbursed through qualifying microfinance banks.”
Nwoke urged the CBN to suspend the capitalisation deadline for MFBs to 2023, by which time, according to him, the CBN would be in a position to properly appraise the level of capital that supported the operations of MFBs in the country.
He also canvassed the need for the apex bank to urgently review the prudential guidelines to govern the risk classification of MFB loans within the context of the COVID-19-triggered economic lockdown, pointing out that this would help in forestalling quick erosion of the existing capital of MFBs and enable them to sustain their grassroots financial inclusion drive.
The Director, Development Finance of CBN, represented by Dr. Ada Momoh, commended NAMB for its effort to deepen financial inclusion, particularly through the funding of MSMEs over the past few years despite the risks.
Similarly, the apex bank’s Director, OFISD, Nkiru Asiegbu, who was represented by Michael Daliop, lauded the association, particularly for promoting grassroots economic growth, and assured its leadership of the readiness of CBN to consider its recommendations on the way to adequately fund and grow the informal sub-sector through joint collaboration in order to build a formidable economy.
