The National Association of Microfinance Banks (NAMB) has advocated the need for the monetary authorities to broaden their policy scope towards improved funding of the nation’s micro, small and medium enterprises (MSMEs).
The President of the association, Yusuf Gyallesu, stated this against the backdrop of NAMB’s recently concluded, 11th Annual General Meeting in Abuja.
He commended the Central Bank of Nigeria (CBN) for its intervention initiatives to support the MSMEs.
He suggested that new funds for the subsector could come from interventions specifically designed and targeted at the MSMEs to be routed through MFBs.
He urged the apex bank to foster links between the deposit money banks, development banks, and other specialised financial institutions to enable MFBs to boost the productivity of MSMEs.
”What the microfinance subsector needs now is funding to be able to support MSMEs. This funding can come in the form of intervention specifically designed and targeted at the MSMEs to be routed through MFBs,” said Mr Gyallesu. “Another avenue is for CBN to foster linkages between the deposit money banks, development banks and other specialised financial institutions such that MFBs can source wholesale funds and refinancing facilities from them.”
He noted that “this is to widen their outreach and for on-lending to the MSMEs at relatively cheaper costs.”
The NAMB president urged the CBN to establish a Microfinance Sector Development Fund to provide the necessary support for the development of the sub-sector.
“Such support can be in terms of refinancing facility, capacity building, and other promotional activities,” he added.
Commenting on the recent intervention by the National Assembly, which resulted in the shifting of the recapitalisation deadline for the MFBs, Mr Gyallesu stated that the intervention was timely.
“Even though it was persuasive to CBN, it came as a reprieve to our members who are now doubling their efforts to mobilise for additional capital,” he said.
