16 total views, 1 views today
The new policy by the Central Bank of Nigeria (CBN) that will ensure Microfinance Banks (MFB) open new 64 accounts per month is an initiative that will not only improve credit for Small to Medium Enterprises (SMEs) but also spur financial inclusion, analysts have said.
As part of attempts to reach its financial inclusion target, Nigeria’s apex bank on June 20th 2019 anchored a goal of 64 new customers per branch every month for microfinance banks in the country.
According to Gbolahan Ologunro, a Research Analyst at Lagos-based CSL Stockbrokers, the move by CBN is geared towards improving the flow of credit to the SMEs while also including them into the formal financial sector.
“What CBN is trying to achieve is to improve credits to SMEs, considering Microfinance Banks are set up for the purpose of providing traditional banking services to SMEs,” Ologunro explained.
The other objective is to “spur financial inclusion by bringing those small enterprises that are yet to be included into the formal financial sector to the banking net.” he added.
In a letter addressed to all Microfinance Banks on the revised national financial inclusion target, the apex bank said one of the resolutions reached at the recently held stakeholders’ forum was the setting up of the target for the MFBs to ensure each of their branches are able to open 774 new bank accounts per annum.
“Consequently, all MFBs are hereby requested to implement the above resolution and disseminate same to all their branches (where applicable) to ensure concerted efforts towards achieving the overarching target of 80 percent financial inclusion by the year 2020,” the CBN instructed.
On October 23, 2012, Nigeria’s apex bank in collaboration with industry stakeholders launched the National Financial Inclusion Strategy (NFIS) aimed at reducing the financial exclusion … Read More...