Business

March 13, 2014

Microfinance must target women to drive economic devt— Moghalu

Microfinance must target women to drive economic devt— Moghalu

By JONAH NWOKPOKU

The Deputy Governor, Operations, Central Bank of Nigeria, Dr. Kingsley Moghalu has said that microfinance institutions cannot achieve its purpose of accelerating economic growth unless its contextual basis is restructured and made to target women.

He stated this at the sideline of an international sustainable banking forum organized by CBN in conjunction with International Finance Corporation, IFC in Lagos recently.
Moghalu decried the challenges being faced by women in accessing capital in modern economy and said, “the problems with microfinance banks in Nigeria is that it was not started on the best contextual basis which is to target it at women. And so microfinance became corrupted. It became a mini commercial bank.”

“In Bangladesh, India and other parts of Asia where it began, Microfinance targeted women,” he added.
He further identified capital as a critical requirement for capitalism to thrive and advocated more access to finance by sectors that have been excluded before now.

“One of the basic requirements of capitalism is capital. You cannot have capitalism without capital and that means access by finance to sectors that have been traditionally excluded from finance in the modern economy. One of the reasons that women have been excluded is because traditionally women have been restricted to owning lands in many societies and cultures.

And so setting up a N220 billion MSME fund is a very concrete way of setting aside fund to make sure that this fund goes to women. That is the beginning and then we will begin to look at why women have problems accessing these kinds of fund. Of course this will require collateral repayment plans.
“We are also working to create what I call movable collateral.