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How to be successful, CBN counsels micro finance banks

By Enyim Enyim

ONITSHA—Central Bank of Nigeria, CBN, has advised micro finance banks in the country to refrain from any form of competition with commercial banks, if they want to remain in business.

Branch Controller of CBN, Awka, who was represented by Mrs. Georgi Nwankwo, Head of Development Finance at CBN Awka, made the call during the official opening of Partnership Micro Finance Bank, PMB, Onitsha.

The apex bank said that micro finance banks were set up to cater for small, medium and micro economic enterprises, and are registered and equipped to run financial activities for those borrowers, who do not have what it takes to operate with the commercial banks.

The CBN urged  microfinance banks to set their target at empowering the active productive poor with micro credit and extend their tentacles to the poor economic active clients.

“Micro credit is the key to economic empowerment of the productive active poor in the economy, who operate at the grassroot and equally encourage grassroot banking,” said CBN.

In his address during the occasion, the Obi of Onitsha, Igwe Alfred Achebe called on Onitsha people,  and those in the Diaspora to invest in the bank so that the poor among them would benefit and set up something to improve their living standard.

Igwe Achebe had on 3 April  2009 inaugurated the board of the bank at the Ime-Obi Palace Awka Road Onitsha. The Bank is being promoted by Onitsha indigenes and some non indigenes.


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