The Nigeria Deposit Insur
ance Corporation (NDIC) has advised governors in northern states to establish more micro-finance banks in their respective domains.
The Managing Director of NDIC, Alhaji Umaru Ibrahim, gave the advice at NDIC Special Day at the Kano International Trade Fair in Kano.
He said this would help to reduce poverty and unemployment which are prevalent in the region.
Ibrahim, who was represented by the corporation’s Head of Communication, Alhaji Sule Birchi, said the advice was necessary in order to promote financial inclusion.
“The high concentration of the MFBs is in the south while the north is lagging behind with a few in various locations.
“While the south had established 627 MFBs, the north has only 276.
“Further more, the south-west and south-east zones have 339 and 161 MFBs respectively, the north-east and north-west zones have only 35 and 50 respectively’’, he said.
He said the advice was also necessary in view of the fact that MFBs were the most veritable tools in poverty alleviation.
Ibrahim explained that MFB services were being provided to the vast majority of the active poor; 70 per cent of whom were in the informal sector and lived in rural areas.
He added that the MFBs have abundant opportunities to move funds in informal sector through the banking sector.
“The unequal distribution of the MFBs in the country is quite disturbing, hence the need for northern state governors to rise to the challenge.’’
He, however, commended the initiative of Kano and Kaduna States for taking the bold steps to establish a number of such banks in their respective states.
Ibrahim also commended the organisers of the fair, saying it would go a long way towards boosting socio-economic activities in the state.