The Central Bank of Nigeria (CBN) has introduced a new special intervention fund for Microfinance banks (MFB) in Nigeria, seeking to increase the share of microcredit ratio to at least 20 percent by 2020.
Mr. Godwin Emefiele, CBN Governor made this known while delivering a key note address during a seminar for finance correspondents and business editors in Gombe State.
Emefiele said the apex bank is informed on the MFBs contribution to the financial inclusion of small business owners including peasant farmers, artisans among others
He reiterated that CBN is committed to empowering disadvantaged groups including women through microfinance initiatives, targets increasing the share of microcredit as a percentage of total credit to at least 20 percent by 2020, from the current 5 percent.
Speaking, Mrs. Tokunbo Martins, the Director, Other Financial Institutions Supervision Department disclosed that the apex bank is also reviewing MFB policies in a bid to release the third edition, which was introduced in 2005.
She further expressed dismay over the poor performance of MFBs in deposit mobilization, however, said with the help of the banks, SMEs have made a positive impact to the gross domestic product (GDP) of the country.