Ex-CIBN Boss Tasks FG On Microfinance Sector

A  former President,
Chattered Institute of Bankers of Nigeria (CIBN), Mr Ikechukwu Unegbu, has urged the Federal Government to reposition the microfinance sector to assist the active poor in the recession period.
Unegbu told the newsmen yesterday in Lagos that a vibrant microfinance sector would hasten the country’s efforts out of the economic recession.
He said that beside the recapitalisation of the Bank of Industry (BoI) to assist small scale businesses, the active poor who could not approach the BoI needed to be carried along.
”Besides BoI, the government should reposition and grant incentives to micro finance banks to serve the active poor.
”The help can be in the form of tax holiday to stimulate the economy, just like it was done during the regime of Ibrahim Babangida.
”The bank’s focus should be mainly to give loan to those into agriculture and its value chain as well as cottage firms where the bulk of the people are,” he said.
Unegbu also commended President Muhammadu Buhari for including the recapitalisation of the BoI to the tune of N15 billion in the 2017 budget.
The Tide source reports that Buhari, while submitting the 2017 budget to the National Assembly on Dec. 14, said the aim was to enable it boost the SMEs sector.
He said the recapitalisation of the bank would boost small businesses and contribute effectively to the gross domestic product of the economy.
The president, however, urged the government to prevail on the bank to be liberal in its conditions for granting loan.
”Although the bank has built a reputation for boosting small businesses, it should be liberal in the process of granting out loans.
”The bank should move beyond state capitals and have outlets in the hinterland where the people are based,” he said.