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CBN calls on stakeholders in micro-finance to collaborate

The Central Bank of Nigeria(CBN) on Thursday in Abuja said stakeholders in the microfinance sub-sector must partner to grow the industry. Dr Kingsley Moughalu, Deputy Governor, Financial System Stability, said this at a forum which had as theme: “ Building Successful Multi-Stakeholders’’ Partnership in Micro-finance.”

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“The stakeholders’’ partnership is the way to go into microfinance. It is very important and we are going to be practical about it. Partnership is essential because various stakeholders possess different competence and advantages.

Partnership can provide platform for mutual learning, sharing information, knowledge and experience. It provides greater tool for human and material resources for facilitating growth of micro financing,’’ he said.

He cited an area of partnership to include capacity-building, saying it was more important than funding or capital investment. Moughalu said the sector needed people who understood the sub-sector, its concept, potential and operations. He said CBN was undergoing regulatory review of micro-finance banking alongside the review of its policy to evaluate the level of impact on the economy.

“By June to July with all these going on, we will be able to come up with a revised micro-finance policy for Nigeria,” he said. He said more than 900 stakeholders were consulted over the new policy. In his address, Alhaji Muhammad Umar, Director-General, SMEDAN, said the idea of micro finance was to provide service to the active segment in society. He said for micro finance to become an integral part of the financial sector, there was need for strong partnership among stakeholders.

“No organisation alone can solve the problem of poverty in a nation. The only way micro finance can achieve its goal is through Public-Private-Partnership,’’ he said, adding: “policy influence is the key we need to use in all aspects of the policy to strengthen the micro finance sector.”

Also speaking, Mr Babatunde Oralusi, Director-General, Nigeria Capital Development Fund (NCDF), said there was the need to develop avenues for poor people to access funds. He said NCDF convened the forum to support CBN as it strived to review the micro finance policy. Oralusi said there was also need to champion the cause of rural entrepreneurs as it would go a long way in boosting the economy.

He urged stakeholders to utilise the opportunity to contribute ideas that would help to develop the micro finance sector in the country. “There cannot be any development without genuine support from the private sector,’’


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