Nigeria: Kaduna Embraces Microfinance Policy

Mar 2009
Lagos, Nigeria, March, 24 2009 - The micro finance policy of the federal government is already bearing fruits in Kaduna State as the 18 community banks have already converted to Micro Finance banks and as at January this year, 23 of such banks have either been licensed or given Approval s-in-Principle by the Central Bank to operate.

This was disclosed by Alhaji Mohammed Ibrahim Gusau, the Kaduna Branch Controller of the Central Bank of Nigeria (CBN) on Saturday night, at the 2008 annual dinner of Bankers' Clearing House Committee which was held at Hamdala Hotel Kaduna.

According to him, the state government has inaugurated the Kaduna state microfinance policy implementation since 2006, "primary to ensure the transformation of the then community banks to microfinance banks," adding that since then, the terrain for micro financing in the state has changed for the better. The Branch controller of CBN however said that the spread of such microfinance banks is not enough to cover the entire state. He then called on wealthy individuals, community leaders, non governmental organisations and other interested parties to establish more microfinance banks in Kaduna state because the government has created the enabling environment for them to thrive.

Alhaji Mohammed Gusau also said that the state government, in its effort to boost agriculture, has negotiated with four Money Deposit Banks which are expected to disburse N800 million as agricultural loans to farmers in the state. Out of this amount, the state government has deposited N200 million while the farmers will contribute the same amount and the CBN will "guarantee 75% on the N400 million (50%) granted by the banks, (thereby) minimising the risk of exposure of the lending banks to only 12.5%."

To this end, Lere local government had deposited last year, N19 million with the Saminaka branch of First Bank, for its "Lere back to land agricultural programme, the Branch Controller has said, adding that the amount will serve as the 25% cash collateral to the farmers of the council. He commended the local government chairman, Alhaji Ibrahim Lawal for his efforts and called on other council chairmen to follow his example.

Source :

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