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CBN, NIPOST and Bankers Committee To Lunch National Microfinance Bank In Nigeria

CBN, NIPOST and Bankers Committee To Lunch National Microfinance Bank In Nigeria
CBN, NIPOST and Bankers Committee To Lunch National Microfinance Bank In Nigeria

In a move to intensify effort to drive one of the developments programme of the Central Bank of Nigeria (CBN), there is on-going effort by the apex body to collaborate with the Bankers Committee and the Nigerian Postal Service (NIPOST) in setting up a national microfinance bank (MFB) that would help in disbursing of funds through the Agribusiness/Small and Medium Enterprise Investment Scheme (AGSMEIS) and this is schedule for lunching next month January 2019.

This news came out through the CBN Governor, Mr Godwin Emefiele who spoke at the opening ceremony of the 10th annual bankers’ committee retreat held in Lagos, Nigeria.

The main aim of this intervention programme is to enhance financial inclusion and increase access to funding of small and medium enterprises (SME) businesses and the agricultural sector.

The CBN governor made it known that with the Apex bank having access to over N60 billion sitting in its coffers, it has decided not just to leverage on the earning realized from treasury bill, but to invest in micro and small medium enterprise all in an effort to help the active poor have access to needed funds for their growing business.

The establishment of the national microfinance bank is scheduled to kick off In January 2019 and this would help achieve the objective set out by the Agribusiness/Small and Medium Enterprises Investment Scheme (AGSMEIS).

In other to achieve this, the CBN is partnering with NIPOST in providing their facilities as selected centre point located in the whole 774 local government of Nigeria while the bankers committee role as that of first line financiers with all partners having a board representation in the formation of the national microfinance bank. The expertise of The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) would also be required in order to finance low income SME entrepreneurs with aim to de-risk some of the credit that would originate from the national microfinance bank in form of credit guarantee

The introduction of the national microfinance bank would help improve the living standard and conditions of rural communities which is to create job opportunities, enhance people’s skills and above all promote the living standard of local in different communities.

 

Further reading at;

https://www.diamondbank.com/cbn-approves-agsmeis-loan-diamond-banks-beneficiaries/

https://guardian.ng/business-services/banks-begin-disbursement-of-n26-4-billion-to-small-businesses/

 

Download circular guideline at;

https://www.cbn.gov.ng/Out/2017/DFD/Guidelines%20on%20AGSMEIS.pdf

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