Seriki Adinoyi
1 September 2008
Jos — The Central Bank of Nigeria (CBN) Plateau State branch controller, Mr Mathias Kura has lamented poor participation in the micro-finance bank industries in the North, saying it is ironical that the same north where there is so much poverty, and who should utilise such facilities has recorded such a poor performance.
Kura, noted this in a keynote address at a One-day workshop organised by the Chartered Institute of Bankers of Nigeria (CIBN), Jos branch, on Micro-finance, Problems and Prospects. He also added that Anambra State alone has over 100 microfinance banks; a value he said surpasses that of the entire north put together, excluding Kwara State . He therefore encouraged micro finance sector in the north to emulate the use of these facilities to boost their businesses.
In his address, one of the resources persons, Mr T K Garba, was throwing light on Micro-financing, he said ìit is all about providing financial services to those who are traditionally not served by the conventional financial institutions. It is the provision of loans, savings insurance, transfer services and other financial products targeted at low-income clientsî. He added that that in micro-financing, the idea that the poor is not credit-worthy is debunked because the poor are economically active and endowed with enormous potentials that can be unleashed if given the opportunity.
Garba who further analysed the challenges of Micro-finance in Nigeria ís Emerging Economy emphasized that in Nigeria , even as elsewhere, Micro-finance Banks have been recognised as capable of promoting the establishment of institutions that support the development and growth of micro-finance service providers. He said it is programme put in place in Nigeria to reduce poverty and empower people by increasing their access to factors of production especially credit.
On her part Professor (Mrs) E Ammali of the Department of Economics, University of Jos , said the major distinguishing feature of micro-finance from the formal banking sector is the smallness of loans advanced, the absence of asset-based collateral and simplicity of operations. She said this enhances monetary stability, expand financial infrastructure for small and medium enterprises, as well as providing stimulus for economic growth and development.
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