NAMB Wants More Microfinance Banks

The National Association of Micro-Finance Banks (NAMB) has called on state governments to establish more Micro-Finance Banks (MFBs) to provide employment opportunities at the grassroots.

The national president of the association, Mr Jethro Akun, made the call in an interview with newsmen in Abuja. Akun said the MFBs would serve as a veritable means of channelling micro credit facilities to low income earners and the poor at the grassroots.

He also urged states to consider the importance of financial inclusion to help people with limited or no access to formal banking services.

According to him, it is a legal requirement for states and local governments to set aside one per cent of their annual budget for micro-credit scheme. He said that the association would encourage the states to use their one per cent for the establishment of MFBs to encourage financial inclusion.

Akun commended the Kano State Government for taking the lead in establishing MFBs at the grassroots and urged other states to emulate the Kano model.

He also commended the Central Bank of Nigeria for granting licences to 37 MFBs at a stretch in Kano State.

“To us as NAMB, it is a good development. Looking at it from the  surface, it will look as if government is now coming in to run MFBs. But what government is doing is driving development in the sub-sector because of the passion government has to reduce unemployment, poverty at the grassroots level.’’

The NAMB national president said it was instructive that Kano State Government planned to subsequently divest from the banks and allow the communities or citizens within that local government area to run the establishment.  He expressed the hope that the establishment of more MFBs at the grassroots would bring down the interest rate.  According to statistics from the CBN, about 56.3 million or 64.1 per cent of Nigerians had no access to formal banking services.The apex bank, which recently issued a new set of guidelines for the MFBs in the country, believes the sub-sector has the potential to contribute to poverty reduction, economic growth and development.